Motivating Interdependent Teams: Individual Rewards, Shared Rewards, or Something in Between?

The primary purpose in this study was to extend theory and research regarding the motivational process in teams by examining the effects of hybrid rewards on team performance. Further, to better understand the underlying team level mechanisms, the authors examined whether the hypothesized benefits of hybrid over shared and individual rewards were due to increased information allocation and reduced social loafing. Results from 90 teams working on a command-and-control simulation supported the hypotheses. Hybrid rewards led to higher levels of team performance than did individual and shared rewards; these effects were due to improvements in information allocation and reductions in social loafing.