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Experimental Evidence on Group-based Attendance Bonuses in Team Production

Bibliographic Data

ID12321793
AuthorsTheresa Chaudhry (0000-0002-3248-8018, Lahore School of Economics, corresponding author), Zunia Saif Tirmazee (0000-0002-6158-8130, Lahore School of Economics), Umair Ayaz (Georgia State University)
Year2022
Volume18
Issue1
Pages90-110
Publication date2022-11-01
Open AccessYes
TypeARTICLE
VenueJournal of South Asian Development (JOURNAL)
Journal identifiersISSN: 0973-1741 • E-ISSN: 0973-1733
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/09731741221129350
OpenAlexW4308137573
LanguageEN
References cited20

We test the effectiveness of a group-based attendance bonus in a field experiment in a factory in Pakistan, where workers manufacture electric fans in stages using batch-production methods. We find that the group-based attendance bonus increased by more than a quarter the average number of days that the team’s attendance target was met. This effect was larger for junior and mid-level workers as compared to senior workers. We find that the bonus incentivized better coordination among workers, especially in the latter part of the month, rather than through higher average attendance. Our experiment’s results suggest that temporary incentive programmes may help workers in the transition period to new ways of organizing production and may prove to be a valuable tool for change management. Group-based bonuses offer an alternative to individual or tournament-based incentives based on one’s own or relative performance, which may have deleterious effects on intrinsic motivation and pro-social behaviour

Attendance · Business · Demographic economics · Economic growth · Economics · Factory (object-oriented programming · Incentive · Labour economics · Microeconomics · Operations management · Production (economics · Quarter (Canadian coin · Test (biology · Computer Science · Decision-Making and Behavioral Economics · Evolutionary Game Theory and Cooperation · Experimental Behavioral Economics Studies · Marketing

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