Publications
Publications
- December 2000 (Revised January 2002)
- HBS Case Collection
Incentives and Controllability: A Note and Exercise
By: Brian J. Hall
Abstract
Describes three performance measures for "plants" or businesses: cost centers, revenue centers, and profit centers. Discusses what should be done if a function outside of the "controllability" of the manager affects the performance measure and therefore compensation.
Keywords
Factories, Labs, and Plants; Cost; Profit; Revenue; Compensation and Benefits; Managerial Roles; Performance Evaluation; Motivation and Incentives
Citation
Hall, Brian J. "Incentives and Controllability: A Note and Exercise." Harvard Business School Background Note 801-334, December 2000. (Revised January 2002.)