The Effect Of Team Budget-Liner Contract's Budget Level And The Team Rewards' Secondary Distribution On Team Performance And Goal Commitment-An Experiment Study

During the tasks which use team as the way to organize the employees, the performance of each member is hard to be evaluated. Information asymmetry occurs between manager and employees, and this leads to "hitchhike" behavior which can reduce the organizational performance. Team based reward structure is a good tool to solute this problem, it can give the employees the special reward according to their performance. And in this way, it can lead the behavior of the employees to a better way. Group budget-linear contract is highly evaluated by many scholars. Many papers showed that it can significantly improve the team performance. Secondary distribution of the team reward among the team members also received many attentions from scholars. Competitive reward and cooperative reward is two of the most popular ways to distribute the team reward among the team members, they have different influences among different conditions. Goal commitment is a key variable which can impact the employees'performance. According to the variables which can impact the goal commitment, many scholars have showed their opinions, but when it comes to the team levels, how the reward structure and level of team goals act in the team work is still not quite sure. And this research which collect information from a laboratory experiment, try to show how two levels of variables impact on team performance and team goal commitment. The two levels of variables are all about the team, one is the budget level of group budget-linear contract, and the other is the way of Secondary distribution of the team reward; Competitive reward and cooperative reward. The result showed that, when the teams use the group budget-linear contract, a medium level of budget is more positively relates to the increase of team performance than a low or high level. When a low level of budget is taken into use, the cooperative reward brings more increase of team performance and the team goal commitment than competitive reward. When a medium or high budget level is taken into use, the competitive reward brings more increase of team performance than the cooperative reward, but when it comes to the team goal commitment, this relationship can't be clearly proved.