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This paper studies a retail chain that introduced a sales incentive plan that rewarded for exceeding a sales target and subsequently cut the incentive intensity in addition to increasing the target. Utilizing monthly panel data for 54 months for all 53 units of the chain the paper shows that the...
Persistent link: https://www.econbiz.de/10008938620
We study effects of a firm's attempt to optimize an existing incentive scheme to increase sales growth for direct store delivery workers. Before optimization workers reported Ratchet Effects that lowered productivity. The altered incentive plan offered higher compensation for increased sales...
Persistent link: https://www.econbiz.de/10009422194
Incentives theory suggests that compensation schemes should be analyzed along two dimensions: controllability and congruence. Most schemes cannot satisfy both criteria at once. EVA bonus schemes, a major managerial innovation of the 90’s, favor the congruence criterion. This paper questions...
Persistent link: https://www.econbiz.de/10002257160
The maximization of profit as the main objective of companies is being criticized from different forums, advocating for an economic system in which the achievement of social sustainability will play a leading role. In the banking sector, after the outbreak of the crisis in 2008, financial...
Persistent link: https://www.econbiz.de/10011890337