RePEc: Research Papers in Economics · 1994 · 419 citations · 15 references
ManagementBusiness EconomicsEconomicsCooperative EconomicsExperimental EconomicsIncentive SystemsGroup ProductivityIncentive SchemesIndividual IncentivesMonetary IncentivesProfit SharingRevenue SharingGroup Decision Making Under IncentivesGroup Incentive PayGroup Incentive PlansGroup Incentive SchemesProductivityProfit Sharing SchemesRelative Performance AnalysisRelative Performance Targets
This paper presents an experimental examination of a variety of group incentive programs. The authors investigate simple revenue sharing and more sophisticated, target-based systems such as profit sharing or productivity gainsharing, as well as tournament-based and monitoring schemes. Their results can be characterized by three facts: (1) history matters-how a group performs in one incentive scheme depends on its history together under the scheme that preceded it; (2) relative performance schemes outperform target-based schemes; and (3) monitoring can elicit high effort from workers, but the probability of monitoring must be high and, therefore, costly. Copyright 1997 by American Economic Association.
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Peer Pressure and Partnerships
Eugene Kandel, Edward P. Lazear · Journal of Political Economy · 1992 · 1.8K citations
Management, Organization Studies, Organizational Behavior +17