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 …

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 introduction of the sales incentive plan increased sales and profitability …