The relation between individual characteristics and compensation contract selection

Fehrenbacher, Dennis D.; Kaplan, Steven E.; Pedell, Burkhard

doi:10.1016/j.mar.2016.06.001

Cited by 18 publications

(16 citation statements)

References 30 publications

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“…Specifically, they examine the personality traits of need for achievement and locus of control. The personality trait of need for achievement can be subsumed within an urge to continually improve, whereas locus of control refers to whether individuals believe that they can control events (Rotter 1966;Fehrenbacher et al 2017). Fehrenbacher et al's (2017) findings indicate that choosing a performance-based contract is not only associated with an individual's skill level and risk preferences but also with that individual's need for achievement and locus of control.…”

Section: Compensation Rewards and Incentivesmentioning

confidence: 99%

“…From 2015 to the first half of 2019, we identify articles employing concepts from social, cognitive, and motivation psychology and multiple subfields simultaneously. Furthermore, five out of the seven articles employing personality psychology were published in 2017 and 2019 (Fehrenbacher et al 2017;Holderness et al 2017;Wang 2017; Davidson 2019; Nichol 2019). Moreover, three articles that rely on a combination of personality psychology and other subfields were published in 2017, 2018, and 2019 (Reichert and Woods 2017;Kaplan et al 2018a;Chong and Wang 2019).…”

Section: Descriptive Analysismentioning

confidence: 99%

“…When payment is fair, however, penalty contracts have strong positive effects on individual risk-taking and effort (Oblak et al 2018). There are interactions between personality factors and incentive contract design choices (e.g., Fehrenbacher et al 2017;Reichert and Woods 2017). Fehrenbacher et al (2017) investigate the effects of task-related skills, risk preferences, and personality traits on employees' compensation contract selections.…”

Section: Compensation Rewards and Incentivesmentioning

confidence: 99%

“…There are interactions between personality factors and incentive contract design choices (e.g., Fehrenbacher et al 2017;Reichert and Woods 2017). Fehrenbacher et al (2017) investigate the effects of task-related skills, risk preferences, and personality traits on employees' compensation contract selections. Specifically, they examine the personality traits of need for achievement and locus of control.…”

Section: Compensation Rewards and Incentivesmentioning

confidence: 99%

“…Among others, reactions to, e.g., PME systems, compensation, rewards or incentives benefit from psychology-based explanations of behavioral patterns. For instance, designers of PME systems should be aware that personality traits like psychological entitlement can affect one's behavioral response to performance feedback (Holderness et al 2017) or that compensation contract selection may be affected by one's need for achievement (Fehrenbacher et al 2017). Thus, our review advocates the consideration of such aspects, and we provide relevant insights on these mechanisms for academics, practitioners, and designers of MAC practices and systems.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Psychology in management accounting and control research: an overview of the recent literature

Wibbeke

Lachmann

2020

J Manag Control

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For decades, management accounting and control (MAC) researchers have employed a diverse set of source disciplines to predict and examine behavior, and psychology is among the most frequently drawn upon. Although the literature confirms that psychological theories are highly relevant to MAC research, the existing knowledge on this field remains fragmented. Given this background, we examine recent MAC research through a systematic review of the different subfields of psychology to investigate the development of this stream of research. To do so, we collect 125 relevant articles from nine leading accounting journals between 2000 and 2019 and analyze their contents. On this basis, we provide a detailed overview of the use of psychological theories in recent literature and identify links between specific theories and MAC topics. We find that the quantity and proportion of psychology-based MAC research and the diversity of psychology subfields all increase during our investigation period, especially between 2015 and the first half of 2019. Overall, most studies address performance measurement and evaluation topics, and social psychology concepts are the most frequently applied. However, we find considerable differences in the application of psychological theories across different MAC topics. Our review provides insights into the content of this research stream and, thus, serves as a valuable source for researchers seeking an overview of previous investigations drawing on different subfields of psychology.

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Section: Compensation Rewards and Incentivesmentioning

confidence: 99%