Performance Management 245
Are Employee Motivations and Management Different in
Public and Nonprofi t Organizations Than in For-Profi t
Organizations?
Perry, Mesch, and Paarlberg (2006) conducted a comprehensive review
of the literature on motivation. Based on an analysis of the research, they
developed thirteen broad propositions:
Financial Incentives
Financial incentives improve task performance moderately to
signifi cantly, but their effectiveness is dependent on organizational
conditions.
Individual fi nancial incentives are ineffective in traditional public
sector settings.
Group incentive systems are consistently effective, but they are not
well tested in public sector settings, where measures of organizational
performance often are uncertain.
Job Design
Job design is an effective strategy that enhances performance.
Job design interventions infl uence affective outcomes more strongly
than behavioral outcomes.
Moderators and implementation are important infl uences on the
effi cacy of job design.
Participation
Participation has a strong positive impact on employees ’ affective
reactions to the organization.
Participation has a positive but limited impact on employee per-
formance.
The promise of participation may lie in improved decision
making.
Goal Setting
Challenging and specifi c goals improve the performance of
employees
Setting learning goals, as opposed to merely diffi cult - to - attain goals,
may be most effective when tasks are complex.
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