The use of monetary incentives enhances the positive effects of goal setting, especially for difficult goals.

Question

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Research uncovered some negative consequences when goal achievement is linked to individual incentives. Empirical studies demonstrated that goal-based bonus incentives produced higher commitment to easy goals and lower commitment to difficult goals. People were reluctant to commit to high goals that were tied to monetary incentives.

The Use of Monetary Incentives Enhances the Positive Effects of Goal