Download or read book Promotion Incentives Performance Pay and Human Capital Acquisition written by Jan-Oliver Strych and published by . This book was released on 2015 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper provides empirical evidence how promotion incentives and performance pay are related to nonverifiable human capital acquisition contingent on its grade of firm specificity. Consistent with Prendergast (1993), I document that promotion incentives are positively related to nonverifiable firm-specific human capital acquisition whereas individual performance pay (i.e., piece rates or productivity payments) is not related to such acquisition. If human capital is general rather than firm-specific, i.e., can also be utilized in other firms (Becker, 1962), I find that individual performance pay is positively related to such general human capital acquisition and there is no such relation for promotion incentives.
Download or read book On the Role of Learning Human Capital and Performance Incentives for Wages written by Braz Camargo and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance pay in general amounts to only a small fraction of total pay. In this paper, we show that performance pay is nevertheless important for the level and dynamics of wages over the life cycle because of the incentives it indirectly provides for human capital acquisition and because of its impact on the variability of total pay. We articulate this argument in the context of a model that combines three key mechanisms for wage growth and dispersion: employer learning about workers' ability, human capital acquisition, and performance incentives. We use this model to account for the experience profile of wages, their dispersion, and their composition in terms of fixed and variable (performance) pay. The model admits an analytical decomposition of performance pay into four terms that capture (i) the trade-off between risk and incentives characteristic of settings of moral hazard; (ii) the insurance that firms provide against the wage risk due to the uncertainty about ability; (iii) incentives for effort arising from this uncertainty (career concerns); and (iv) incentives for effort generated by the prospect of human capital acquisition. We prove the model is identified under standard assumptions. Despite its parsimony, the model fits the data very well, including the empirical finding that performance pay as a share of total pay first increases and then decreases with experience. This feature of performance pay, which we are the first to document, runs contrary to the prediction of standard models of performance incentives that the ratio of performance pay to total pay increases with experience, especially at the end of the life cycle. Our estimates imply that effort to produce output augments human capital. Also, human capital acquisition and insurance against uncertainty about ability are quantitatively the main determinants of performance pay. Career-concerns incentives, on which the theoretical literature has focused, and the strength of the contemporaneous trade-off between risk and incentives--the primary determinant of variable pay in static moral-hazard models--are instead much less relevant. Importantly, we find that through the cumulative impact of effort on the job on human capital acquisition and the contribution of variable pay to the variance of total pay, performance incentives are a crucial source of wage growth and dispersion over the life cycle.
Download or read book Implicit Incentives for Human Capital Acquisition written by Isabella Grabner and published by . This book was released on 2015 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of human capital in building and maintaining competitive advantage is undisputed, and ensuring that employees invest in their human capital has thus become of utmost importance to firms. Despite this, management control research has not dedicated much attention to the personnel control mechanisms that aim at upgrading the effective ability of employees, i.e., training and assignment of employees. In this study, we investigate the complementary roles of training and promotions in the active management of employees' human capital acquisition. In particular, based on a simple theoretical framework, we predict that promotion opportunities create implicit incentives to invest in job-specific human capital. To test this prediction, we develop an identification strategy to estimate the causal effect of promotion opportunities on the acquisition of job-specific human capital. Using panel data of a retail bank, we provide evidence that, in contrast to bonus-based incentives, which focus on the current job, promotion is an ideal mechanism to incentivize the acquisition of human capital that is relevant for the next job, especially when these skills are not yet relevant in the current job.
Download or read book Pay for Results written by Mercer, LLC and published by John Wiley & Sons. This book was released on 2009-03-17 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The numerous incentive approaches and combinations and their implications can be dizzying even to the compensation professional. Pay for Results provides a road map for developing and implementing executive incentives that drive business needs and strategy. It is filled with specific analytic tools, including tables, exhibits, forms, checklists. In addition, it uncovers myths in performance measurement strategy and design. Timely and thorough, this book expertly shows businesses how to drive their specific needs and strategy. Human resources and compensation officers will discover how to apply performance metrics that align with shareholder investment.
Download or read book Aligning Incentives Information and Choice written by Wendy D. Lynch and published by Health as Human Capital Fou. This book was released on 2008 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why would someone intentionally gain forty pounds in four months? Why are over thirty percent of doctor visits for reasons that the American Medical Association recommends against? Why would the size of someone's bonus pay affect his or her interest in health? Incentives, that's why. Incentives are imbedded into the rules and structures of our social systems, businesses, communities, and healthcare programs. Similar to the force of gravity, incentives pull behaviors in a particular direction. Maybe you don't pay attention to incentives now-after reading this, we think you will.
Download or read book COMPENSATION MANAGEMENT Rewarding Performance written by S.S. UPADHYAY and published by Global India Publications. This book was released on 2009-12 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book outlines a new way of looking at rewards-a holistic approach that uses measurement to determine what an organization actually valuses (in terms of skills, knowledge, experience and behaviors).Further it analyzes the impact of the braod spectrum of reward programs (pay benefits and carrers) on human capital and, in turn, on an organization's profitability.It discusses variable pay programmes, competency models to employee reward, talent management for business optimization, compenation in Not-For-Profit Organizations, designing the annual management incentive plan etc.
Download or read book People Performance Pay written by Thomas P. Flannery and published by Simon and Schuster. This book was released on 2002-01-15 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: People, Performance, and Pay identifies today's four most common organizational work cultures - functional, process, time-based, and network - and explains how to align innovative pay policies with each. With examples from LEGO, Hallmark, Holiday Inn, and other leading organizations, the authors explain how to assess an organization's current culture and determine what its future culture should be. They then demonstrate pay's role in such change initiatives, and how compensation must be integrated with other human resource processes, such as selection, training, and performance management. They also discuss the full range of pay strategies available today and how they can be best used to move the organization forward; for example, they recommend decreasing an organization's emphasis on base pay as it shifts from a functional culture to a process, time-based, or network culture. They also offer guidance on establishing team rewards, especially important in process and team-based cultures, and make a compelling case for putting more pay at risk through variable pay strategies. Here also is strategic advice on competency-based pay, performance-based rewards such as gain-sharing, executive pay, and benefits programs. As responsibility for compensation strategies and compensation decisions shifts away from the realm of the Human Resource Department, line managers and senior executives will find People, Performance, and Pay an invaluable reference for effectively using salary, incentives, and benefits to motivate and reward employees, improve quality, and increase productivity.
Download or read book Compensation and Motivation written by Thomas J. McCoy and published by Createspace Independent Pub. This book was released on 2012-09-01 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Compensation and Motivation" is the first book in the Culture of Partnership series. With a strong foundation in social science and behavioral psychology, this book will show you how to develop incentive plans that work! Turn the cost of compensation into an investment that will increase revenue and profit, enhance the value of the organization and motivate all employees to deliver the business strategy. Compensation and Motivation describes how to develop the right reward system that will engage and motivate the target audience. Employees come to work for the rewards, either material (money), social (recognition and appreciation) or both. Mr. McCoy shows how to combine behavioral psychology and business strategy to create a reward system that offers fulfillment to the employees if they deliver on the company goals. This book goes beyond just showing how to link pay to performance. It shows how to balance the array of rewards that a company can offer (cash, benefits, meaningful work, social recognition and appreciation) so that the maximum motivation is obtained with the least overall cost. It's called "the mix that motivates." Since this book was initially published, over 65 percent of all businesses now offer some form of incentive to all employees. However, many of those efforts are ineffective in achieving the organization's goals. This book shows how to engage all employees in the business, motivate them to perform at exceptional levels, create a common focus and a feeling of shared destiny (teamwork.) Learn how to become an employer of choice. Learn how to engage employees so that the operation "runs itself." Learn how to use compensation as the engine that drives a Culture of Partnership.
Download or read book Human Capital written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-06 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: The federal government uses incentive awards and quality step increases (QSI) to encourage employees to improve their work performance and, consequently, government operations, by recognizing work exceeding normal performance requirements. A questionnaire sent to federal employees revealed that many felt unmotivated by their agencies' incentive programs and believed that the workers most deserving of cash awards were often passed over. Other comments identified the failure of awards programs to increase productivity and the feeling that improvements in efficiency were not recognized with awards. An analysis of incentive awards programs revealed that some workers receiving awards were rated as below-average performers. These problems exist because agency programs overlook the following basic components: linkage to agency goals, systems for setting work expectations and measuring performance, motivation of managers to use awards programs, timely and relevant awards separated from the basic salary rate, and an annual evaluation of program results. Most employees questioned believed that an improved incentives system would improve their performance. In most agencies surveyed, GAO found an excessive use of the QSI as the most commonly granted form of cash recognition, rather than the generally preferable promotion. The Civil Service Reform Act of 1978 helps associate incentive awards and employee performance, although the Act provides only the framework for change; the responsibility for accomplishment lies with supervisors and managers.
Download or read book Designing on Incentives to Promote Human Capital written by Eric Hanusek and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managing through Incentives written by Richard B. McKenzie and published by Oxford University Press. This book was released on 1998-09-24 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: Incentives are the most powerful tools executives can use to improve worker performance. This is particularly true in today's empowered workplace, where incentives can ensure that workers apply their initiative toward company goals. Now, in this groundbreaking book, Richard McKenzie and Dwight Lee show how to select the right incentives and how to use them for best results. Generously illustrated with examples from business, industry, government, academia, and professional sports, this superb volume offers a comprehensive overview of incentives, both in theory and in practice, providing a wealth of ideas managers can use to get employees to work harder, smarter, and more cooperatively. Much of the book is quite eye-opening. For instance, while McKenzie and Lee recognize that money is the prime motivator, they urge managers not to overlook the power of non-monetary incentives, carefully evaluating such motivators as fringe benefits, psychological incentives, education, and training. And they examine a host of other issues, including how to take advantage of executive "overpayment" to increase profits; the limits of piece-rate and other pay-for-performance schemes; finding the right balance between current pay and a more generous pension plan; the value of tough bosses; and hostile takeovers as a form of managerial incentive. How workers are rewarded is often more important than how much they are rewarded, say the authors. The job of good managers is getting the incentives right. Managing Through Incentives shows managers how to apply proven motivators to help any size firm energize the work force, increase its profits, and meet the awesome challenges of today's fiercely competitive global economy.
Download or read book Special Issue on Designing Incentives to Promote Human Capital written by and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Paying for Performance written by Michelle Brown and published by M.E. Sharpe. This book was released on 2002 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although performance pay is used in many industrialized nations, the structure and success of this pay system vary widely depending on the institutions, regulatory framework, and legal settings of each country. This book makes the details and effects of these local variations clear for the first time. World-renowned experts on the programs in their respective countries provide in-depth analyses of performance pay in the United States, Canada, France, the United Kingdom, Germany, Australia, Japan, and Brazil. They draw out common themes across the countries, as well as country-specific determinants of the use of performance pay and its level of success.
Download or read book Dynamics of Wages written by A. N. Mathur and published by . This book was released on 1986 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Designing incentives to promote human capital written by Eric Hanushek and published by . This book was released on 2002 with total page 932 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Paying for Performance written by Peter T. Chingos and published by Wiley. This book was released on 2002-05-06 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: An up-to-date, revised edition of the complete, practical guide to designing and implementing effective compensation plans A compensation package should be more than just the means to attract and retain talented executives. The right kind of plan can give your company a powerful strategic advantage. In Paying for Performance, Second Edition, consultants at Mercer Human Resource Consulting, Inc., one of the world's leading human resources consulting firms, give you the tools and techniques you need to design and implement a highly effective compensation program that will sharpen your company's competitive edge for years to come. The book also shows you how to understand shareholder expectations, government regulation, and a host of business and human resources issues. Paying for Performance, Second Edition: * Describes best practices used at America's top-performing companies * Offers proven pay-for-performance tools for addressing current and future pay issues * Uses case studies drawn from extensive Mercer Human Resource Consulting, Inc. research * Addresses the special issues affecting pay-for-performance in not-for-profits * Presents expert advice on managing talent and competencies to maximize performance * Addresses the regulatory issues that affect executive compensation * Covers everything from base pay to annual and long-term compensation
Download or read book On the Role of Learning Human Capital and Performance Incentive for Wages written by Braz Camargo and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
