Do Managers Set Tougher Targets When They Believe in the Mission?

Summary

This study tests how managers in organizations adopting a social mission set targets for employees. It further tests whether managers’ target-setting depends on (1) how personally aligned the manager is with the organization’s social mission (“value congruence”) and (2) whether the manager is paid a fixed wage or performance-based pay. To address these questions, the study runs a controlled experiment in which participants act as managers and set performance targets for workers completing a real task.