The Effect of Public Recognition on Performance in Competitive Environments

Abstract

This Master thesis investigates the effects of public recognition on performance in competitive environments. Theory suggests three key mechanisms affecting motivation and thus, performance, namely conformity, altruism and reciprocity. The formulated hypotheses are based on previous theory and research and extend it by examining long-term effects. To study the effects of public recognition on performance, a real-effort laboratory experiment was conducted at the University of Stavanger. The results of previous research, that providing public recognition has a positive effect on performance for both rewarded and not rewarded subjects, could not be confirmed. However, it could be confirmed that the effect was stronger for subjects who were not rewarded than for subjects who were rewarded due to public recognition. The positive effect on performance remained for not rewarded subjects when public recognition was provided repeatedly, however the size of the effect decreased. The long-term effect on rewarded subjects could not be confirmed.