Honors Theses and Capstones

Date of Award

Spring 2023

Project Type

Senior Honors Thesis

College or School

PAUL

First Advisor

Yunshil Cha

Abstract

This paper attempts to understand the effects of compensation framing on performance, work relationships, and organizational citizenship behavior. 108 study participants worked under either a bonus or penalty framed contract to complete an effort-based task. The results of the study indicate that employees will exert more effort to get to know their supervisor and demonstrate more good behavior under a bonus frame versus a penalty frame. These findings are important for companies to recognize how different compensation structures impact their employees. Companies can be more successful if they put in more time and effort to better understand their employees.

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