Performance Measurement and Incentive Plans

This paper explores performance measurement in incentive plans. Based on theory, we argue that differences in the nature of jobs between blue- and white-collar employees lead to differences in incentive systems. We find that performance measurement for white-collar workers is broader in terms of the performance measures, the organizational level of performance measurement and the time horizon. The intensity of incentives is also stronger for white-collar employees. All of these findings are consistent with theory.

JEL: J33, M52, M54
Publication year: 2010
Pages: 28
Price: 10€
Language: English
Discussion Papers no. 1216

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