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Incentive Systems

By: Brian J. Hall
  • Format:Print
  • | Language:English
  • | Pages:36
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Abstract

This note serves as a supplement to any course on incentive design within organizations. The note focuses on the principal difficulties in designing incentive systems, including the tradeoff between objective and subjective performance metrics, how to design incentive systems in team environments, and the inherent problems with designing incentive systems in environments where workers are involved in multiple activities.

Keywords

Organizational Strategy; Compensation and Benefits; Motivation and Incentives; Performance Evaluation; Strategy

Citation

Hall, Brian J. "Incentive Systems." Harvard Business School Background Note 916-029, December 2015.

About The Author

Brian J. Hall

Negotiation, Organizations & Markets
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