The Performance Effects of Individual and Group Incentives: A Case Study

Kato TakaoKauhanen AnttiKujansuu Essi

We study a warehouse that changes its incentive plan from a group plan to an individual plan. We focus on the impact that the change had on productivity, allocation of time to different tasks, and helping across departments. Utilizing time series methods we find that average productivity increased about 15 % but that individuals reacted heterogeneously to the change. The change also affected the organization of helping across departments and the allocation of time to various tasks. In addition to the econometrics analysis we provide a description of the process of changing the incentive plan and discuss the cost effectiveness of the change of the plan.

Julkaisun tietoja

Sarja
ETLA Working Papers 19
Päiväys
24.09.2013
ISSN
2323-2420, 2323-2439
Sivuja
28
Hinta
15 €
Painoversion saatavuus
Saatavilla
Kieli
Englanti