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1/19/2017Incentive Pay Won't Work for Everyone2/3employeeperformanceThe study's authors found that the level of career ambition and task attention a manager has is really what drivesthe effectiveness of incentive pay."We found that managers with higher career ambition will be more responsive to incentive pay by taking more risks,"Wang said in a statement.The researchers also discovered that managers who are very attentive to tasks also take more risks when offeredincentive pay. [Does Upbringing Impact CEO Risk Taking? ]"They tend to invest more strategically, and they also are more likely to change strategies," Wang said.For the study, researchers created a model and tested it using a computer-based simulation with part-time MBAstudents who work as managers in companies. The students were presented with a business scenario and had tomake strategic decisions.In addition to uncovering the types of managers for whom incentive pay works best, the study also revealed that theánancial status of the company plays a role in the strategy's performance. Researchers found that incentive pay does