S. Sarin et V. Mahajan, The effect of reward structures on the performance of cross-functional product development teams, J MARKET, 65(2), 2001, pp. 35-53
This study examines the effect of reward structures on the performance of c
ross-functional product development teams. Results suggest that when it is
easy to evaluate individual performances, position-based differential rewar
ds lead to greater satisfaction. For long and complex projects, process-bas
ed rewards have a negative effect and outcome-based rewards have a positive
effect on performance. For risky projects and highly competitive or relati
vely stable industries, a nonlinear and monotonically decreasing relationsh
ip exists between outcome-based rewards and product quality.