Cascading controls: The effects of managers’ incentives on subordinate effort to help or harm

Whether managers achieve their incentivized goals is a function of their subordinates' effort toward those goals. In this study we use an experiment to examine the effect of the managers' incentives on the effort choices of the subordinates. We consider two factors theory suggests will interact to affect subordinate behavior: 1) the framing of the manager's incentive as either a bonus or a penalty and 2) the subordinate's relationship with the...