Mission and the Bottom Line: Performance Incentives in a Multigoal Organization

A-Tier
Journal: Review of Economics and Statistics
Year: 2022
Volume: 104
Issue: 4
Pages: 748-763

Authors (3)

Xavier Gine (Harvard University) Ghazala Mansuri (not in RePEc) Slesh A. Shrestha (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We assess the role of monetary incentives in a mission-oriented organization by randomly assigning workers to one of two bonus schemes, incentivizing either the performance of a microcredit program (bottom line) or the empowerment of clients (mission). We find that the credit bonus improved credit-related outcomes but undermined the social mission, while the social bonus did not harm the bottom line. These results are consistent with a multitasking model with production spillovers or with prosocial behavior. We show that when mission-related rewards are not feasible, organizations that care about both the mission and the bottom line prefer flat wages to incentives.

Technical Details

RePEc Handle
repec:tpr:restat:v:104:y:2022:i:4:p:748-763
Journal Field
General
Author Count
3
Added to Database
2026-01-25