the performance measure and its similarity (congruity, congruence) to the benefit of the manager's employer. A necessary …

This study addresses the factors that determine the intensity of pay for performance schemes. The results indicate that … the use of individual and group incentives boost intensity, whereas plant or firm pay for performance do not seem to … financial measures are not significant or have a negative effect on the intensity of pay for performance …

Theoretical analyses of (optimal) performance measures are typically performed within the realm of the linear agency … noise in the performance measure. In contrast, expectancy theory as developed by psychologists predicts lower effort levels … for noisier performance measures. We conduct a real effort laboratory experiment and find that effort levels are invariant …

We study the incentive effects of grating supervisors access to objective performance information when agents work on … objective measures but assess performance subjectively by gathering information. This incentive loss is more pronounced when the … experiment conducted in a bank. In the treatment group managers obtained access to objective performance measures which raised …

and cost side can be used separately to shape work performance. In our experiment, subjects work on a real-effort task … options, we explore the role of implicit costs of effort in determining workers' performance. We observe that incentive … contracts and implicit costs interact in a non-trivial manner. Performance reacts significantly to changes in implicit effort …