http://www.isnare.com/?s=author&a=Artur+Victoria Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296448&ca=Business+Management The appraisal of individual employees is almost inevitably dysfunctional. Organizational performance is improved through refinements to the overall system or process of production, which must be the focus of attention. According to this line of thought, individual performance appraisals typically di... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296451&ca=Business+Management It would seem that allowing groups autonomously to form and break up as necessary would be nearly ideal: People would choose to be with their friends, and this would promote the efficacy of social sanctions, increase the likelihood of a cooperatively collusive equilibrium being reached, and encourag... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296454&ca=Business+Management Economic analysis of group incentive schemes begins with the free-rider problem: The individual member of the group bears fully the personal costs of her efforts but shares the gains from those efforts, in terms of improved performance and hence increased compensation, with members of the group. If... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296466&ca=Business+Management Incentive schemes are sometimes constructed in which rewards to the individual depend on achieving certain hurdle levels of performance. That is, compensation depends discontinuous on the achievement of some numerical goal. For example, a salesman bonus may depend on whether he surpasses some level... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296474&ca=Business+Management The basic agency model contends that incentives lack power and efficiency when the employee has little control over the measures on which his compensation is based, or alternatively when the employee can control certain measures of performance but those measures give a noisy indication of the value-... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296478&ca=Business+Management An optimal scheme is one that gives the employer the highest expected profit net of compensation paid, subject to the constraint that the employee must be given compensation package attractive enough to get him to accept the job. 1 - The optimal compensation scheme for the employee will typically in... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296481&ca=Business+Management Agency theory, the principal - agent model, and the economic theory of incentives are three names for the same thing: a collection of models created by economists to answer this question. We discuss the basic model in this subsection and elaborations following that. The basic model begins with the s... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296488&ca=Business+Management The desirability of objective/formulaic evaluation measures versus subjective/impressionistic measures hinges largely on considerations of strategy, technology, and culture. But either of these alternatives involves a number of complex considerations when it comes time to devise and implement a part... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296490&ca=Business+Management The point of comparative performance evaluation is simple: It permits the evaluator to control for the impact of unmeasured environmental variables on tangible measures of performance. For example, instead of worrying about the optimal measure or formulas for how well a division performed in absolut... Business Management Artur Victoria Sat, 28 Jan 2012 00:00:00 +0800 http://www.isnare.com/?aid=1296494&ca=Business+Management There are no doubt some occasions in which employees will believe it is fair for a supervisor to hold a particular co-worker to a lower performance standard-for instance, a colleague whose entire family was just killed in a car crash, or who lost a finger, or who has a learning disability, or who is...