Individual incentives yield higher productivity gains than group incentives.

Question

Quizplus · Accepted Answer

Research has shown that individual incentives, such as bonuses or promotions based on individual performance, can be more effective in increasing productivity than group incentives, such as profit-sharing or team-based bonuses. This is because individual incentives provide a clearer link between effort and reward, and can motivate individuals to work harder to achieve their personal goals. Group incentives may create free-riders or social loafing, where some members of the team do not contribute as much but still receive the same reward.

Individual Incentives Yield Higher Productivity Gains Than Group Incentives