EXPLAINING THE ASSIGNED GOAL-INCENTIVE INTERACTION - THE ROLE OF SELF-EFFICACY AND PERSONAL GOALS

This study was designed to replicate conceptually and to explain the g oal-level vs. incentive-type interaction reported by Mowen, Middlemist , and Luther (1981) based on goal setting and social cognitive theorie s. Mowen et al. found that subjects performed more poorly with hard go als than medium goals under a bonus pay system, the opposite of what w as found for a piece-rate system. In the present study, an hourly pay condition was added. Mowen et al.'s interaction was replicated using a two-trial design in which subjects could obtain feedback about their ability to attain the incentive bonuses between trials. The experiment al effects were completely mediated by personal goals and self-efficac y. Goal commitment was related to performance, but did not mediate the experimental conditions. The implications for the design of incentive systems are discussed.