Linking compensation to production DOES lead to greater efficiency. Of course the outcomes for individuals are not the same. The least productive get no more than they did before, and the most productive get a LOT more.
In summary the article says:
The series of experiments provided a fascinating confirmation that financial incentives can trump social networks, with some precision and much detail about the mechanisms involved. Bandiera and her colleagues have now stopped the experiments, in the belief that there is nothing more to be gained from this particular seam of inquiry. The owner does not seem to agree: He's hired a consultant to keep on hatching new performance pay schemes.
The Fruits of their Labor
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