Literature Assignment

Literature Assignment

What are the effects of monetary rewards on performance of public employee and also what are the contingencies that are capable of moderating these effects? This research question has great significance as the PRP schemes have advocated for pay systems where a remuneration element is based on performance of the individual (Belle, 2015). Its major objective is ensuring individuals’ motivation in work and strengthening the link between productivity and rewards thus ultimately improving the expected results; however, it is still unclear whether PRP can benefit the public sector; therefore, the research seek to help understand the positive and negative effects of adopting these measures.

From the randomized experiment with nurses at a local health authority in Italy, the author intends to bring out the positive impact associated with the implementation of PPR in the public center. He suggest that monetary incentives usually have a larger performance effect especially for activities with a pro-social impact when they are secret rather than disclosed. However, he notes that PPR effectiveness is largely based on some contextual factors and thus mostly associated with certain public service sectors and particular organizational level. The research adopts a randomized experiment design where questionnaires, observations and interviews are used to gather research information (Belle, 2015). To help measure the primary independent and dependent variables, the author establishes evaluation strategies to help understand the depth of each PRP’s variable impact on the public health center.

The research concludes that PRP had larger impact on performance of task when the rewards were kept secret than disclosed. A stronger negative interaction between visibility and PRP was realized among participants exposed to direct contact with a beneficiary of their rewards thus heightening their perception of making a positive difference in the people served. Substitution of symbolic reward for the monetary incentive resulted to no crowding-out effects. The research showed that managers and public organizations need to assume full advantage of nonmonetary incentive options in the time of budget restraints, which hinders the offering of large enough bonuses likely to be effective.



Bellé, N. (January 13, 2015). Performance-Related Pay and the Crowding Out of Motivation in the Public Sector: A Randomized Field Experiment. Public Administration Review, vol. 75(2), 230-241.

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