# Performance Measurement and Incentive Plans

**Published:** 2010-05-18  
**Categories:** Publications  
**Tags:** Discussion Papers  
**URL:** https://www.etla.fi/en/publications/dp1216-en/

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.

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## Additional Information

**Key Words:** incentive pay, performance measurement, risk versus distortion trade-off, agency theory

**Kirjoittajat:** Kauhanen, Antti - Napari, Sami

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/2012/09/dp1216.pdf

**Kansikuva:** https://www.etla.fi/wp-content/uploads/2012/09/dp_cover.jpg