Download or read book The Use of Relative Performance Evaluation in Organizations written by Michael Maher and published by . This book was released on 1986 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Use of Relative Performance Evaluation at the Business Unit Manager Level written by Hilco J. van Elten and published by . This book was released on 2014 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Relative Performance Evaluation is a widely studies topic in the theoretical and analytical literature. Also the empirical literature addresses this topic, with its main focus on executive compensation, and using archival data. This study assesses the of RPE in the performance evaluation of business unit managers. Survey data on 325 business unit managers indicate that RPE is used extensively. Also, the findings suggest that RPE improves the quality of the performance evaluation, reducing noise and risk in the performance contacts.

Download or read book Relative Performance Evaluation in Organizations with Information Networks written by Xiangyu Shi and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I study a principal-multiagent model in which the principal adopts relative performance evaluation (RPE) as the compensation scheme, and agents are connected in an information network. The ability of each agent is private information, but adjacent agents in the information network can observe each other's ability. Given RPE as the compensation scheme, and assuming that each agent is identical ex ante, the effect of adding links among agents on the effort level is ambiguous, and is determined by the second-(complementarity) and third-order (“risk” attitude) cross-partial derivatives of the compensation function. Complete information networks may not be optimal for maximizing the performance of the organization, whereas empty networks can be optimal in some cases.

Download or read book Relative Performance Evaluation in Management Control written by and published by . This book was released on 2012 with total page 151 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Relative Performance Evaluation written by Ana Maria Baptista dos Santos Albuquerque and published by . This book was released on 2006 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Performance Evaluation in Organizations written by Walter C. Borman and published by Dartmouth Publishing Company. This book was released on 1994 with total page 616 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book of essays focuses on the efforts of industrial, organizational and business psychologists to address what has been called 'the criterion problem'. The readings are organized into ten parts : Basic issues in criterion performance measurement ; Rating accuracy and rater errors ; Rating formats ; Rater training ; Performance ratings from different organizational sources ; Models of rating processes ; Research on rating processes ; Dynamic criteria ; Work samples and job knowledge testing ; Issues in performance evaluation practice.

Download or read book Relative Performance Evaluation in Management Control written by Hilco J. van Elten and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic theory predicts that performance evaluation gains meaning and accuracy if the performance is compared to peers, as described by Relative Performance Evaluation theory (or: RPE). RPE can be deployed as a means for standard-setting based on peer group performance, by incorporating the performance of a reference group of agents in the compensation plan. Nonetheless, research on RPE suggests that peer comparison is not often a part of the performance evaluation, at least at the CEO level. This research proposal argues that RPE needs also to be studied at lower echelons. Amongst business unit-managers, we believe, RPE can make a significant contribution to opportunism-mitigation. By externally determining the performance standards, targets are less easily influenced by the managers whose compensation depends on them. This extends the interpretation of RPE, a phenomenon that has been analysed primarily from the perspective of efficient risk sharing and informativeness. Building on the literature on RPE, the objective of this research proposal is to study the incidence and form of relative performance evaluation at the business unit level, and to explore contingencies that are associated with empirical (non)-existence of RPE. Extant RPE models do not consider the influence of contingency factors on RPE's applicability or desirability. This proposal presents a preliminary contingency model which aims to further our understanding of RPE. An additional contribution of this study derives from its direct, survey based approach, as opposed to the mostly indirect, public data based prior research. This allows for a deeper examination of RPE in practice, yielding stronger tests.

Download or read book Relative Performance Evaluation Agent Hold up and Firm Organization written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Presence Value and Incentive Properties of Relative Performance Evaluation in Executive Compensation Contracts written by J. Carr Bettis and published by . This book was released on 2014 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data that includes specific contractual details of Relative Performance Evaluation (RPE) contracts granted to executives for 1,833 firms for the period 1998 to 2012, we develop new methods to characterize RPE awards and measure their value and incentive properties. The frequency in the use of these awards has grown over time with 37% of the firms in our sample granting an RPE award in 2012. When RPE awards are used they are typically granted to the five named executive officers and they represent about 32% of total recipient compensation. Stock is most frequently the instrument conveyed, followed by cash, and options are almost never granted. RPE awards are more likely to be used at firms with diversified business lines, less concentrated industries, greater exposure to systematic risk, larger size, lower M/B, higher dividend yield, fewer insiders on the board, greater institutional ownership, and that engage a compensation consultant. The typical award is a rank-order tournament based on three year stock returns compared to a select group of 13 peers (median) and is paid out with stock. Payout functions typically include regions of concavity, convexity, explicit inelasticity, and implicit inelasticity. The median firm achieves a threshold for at least some payout of stock or cash about 70% of the time and target payout about 50% of the time. In general, RPE grant value differs significantly from the fair market value reported by firms. We find that RPE awards convey to executives the incentive to increase shareholder wealth. RPE awards of stock contingent on either stock or accounting performance and RPE awards of cash contingent on accounting performance convey the incentive to increase firm risk, while RPE cash awards do not. These incentives can be significant in comparison to those conveyed by APE grants with similar attributes.

Download or read book Peer Firms in Relative Performance Evaluation written by Ana M. Albuquerque and published by . This book was released on 2009 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Relative performance evaluation (RPE) in CEO compensation provides insurance against external shocks and yields a more informative measure of CEO actions. I argue that empirical evidence on the use of RPE is mixed because previous studies rely on a misspecified peer group. External shocks and flexibility in responding to the shocks are functions of, for example, the firm's technology, the complexity of the organization, and the ability to access external credit, which depend on firm size. When peers are composed of similar industry-size firms, evidence is consistent with the use of RPE in CEO compensation.

Download or read book Relative Performance Evaluation in a Multi Plant Firm written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Performance Measurement and Theory written by Frank Landy and published by Taylor & Francis. This book was released on 2017-06-26 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this volume, first published in 1983, the editors aim to achieve an understanding of performance from a variety of theoretical perspectives. The papers in this volume will not only spur further research, but will also provide an opportunity for some careful considerations of how performance is measured in various applied settings. The book is divided into four major areas; intraindividual issues, interdividual/organizational dynamics, methodology, and philosophies. This title will be of interest to students of business studies, psychology and human resource management.

Download or read book The Measurement of Work Performance written by Frank J. Landy and published by . This book was released on 1983 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book begins with a comprehensive history of research in the area of work performance measurement. The authors present unique ways of dealing with performance issues and measurement ratings. Some of these are methodological, some are substantive and others are administrative.

Download or read book Performance Appraisal And Management written by Tapomoy Deb and published by Excel Books India. This book was released on 2009 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Performance Appraisal and Management" brings forth the essence of the subject in a holistic and integrative manner by emphasizing not only the concepts but the causes and consequences. The book addresses the contemporary concepts, processes, programmes, methodologies and legal, ethical and cultural issues associated with appraising executive and employee performance. The book is enriched with extensive and rich pedagogical tools, relevant case studies, and numerous caselets of organizational practices for facilitating easy grasp and understanding of essential constructs of performance appraisal and management. It is also highly useful for HR practitioners, Business Managers and Management Trainers.

Download or read book Accounting Comparability and Relative Performance Evaluation in CEO Compensation written by Gerald J. Lobo and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate whether accounting comparability is associated with the likelihood that CEO compensation is tied to relative accounting performance (e.g., return on assets). We predict that higher accounting comparability increases the risk-sharing benefit of accounting-based RPE because peer firm performance better controls for common risk in RPE firm performance. Thus, firms that have higher accounting comparability with potential performance peers will be more likely to include accounting-based RPE as a component of the total CEO compensation contract. We find support for this prediction using (1) an explicit test design that relies on the ex-ante terms of CEO compensation contracts obtained from proxy disclosures, and (2) an implicit design that relies on the actual realizations of CEO compensation. To provide further evidence, we examine the association between accounting comparability and the selection of performance peers when the CEO compensation contract includes an accounting-based RPE component. We find that higher comparability between the RPE firm and a potential peer firm increases (decreases) the potential peer firm's likelihood of being selected into (dropped from) the peer group. Cross-sectional analyses show that this association is less pronounced, or not present, when the relative performance measure is price-based (as opposed to accounting-based), indicating that these results do not merely reflect a more general role of comparability in all RPE contracts.

Download or read book Performance in Organizations written by Larry L. Cummings and published by Good Year Books. This book was released on 1973 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Scoring System for Relative Performance Evaluation written by Norman Carroll Mohn and published by . This book was released on 198? with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: