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Best Practices in Incentive Compensation from the Perspective of Value-based Management

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  • Eduard Mădălin Dinu

    ()
    (Academy of Economic Studies, Bucharest, Romania)

  • Costin Ciora

    (Academy of Economic Studies, Bucharest, Romania)

Abstract

As a consequence of the recent global financial crisis, the current economic environment emphasized the weak correlation between company performance and the incentives received by the management staff. Therefore, the existence and consistent implementation of best practices regarding the propelling of the management staff through incentives can lead to a tenable company development. The purpose of this article consists in studying existing methods of incentive granting from a value management perspective and in suggesting some alternatives that could be used by companies during a volatile period characterized by financial economic challenges.

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Bibliographic Info

Article provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.

Volume (Year): 14 (2012)
Issue (Month): 31 (February)
Pages: 273-285

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Handle: RePEc:aes:amfeco:v:14:y:2012:i:31:p:273-285

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Related research

Keywords: best practices; incentive granting; value management; economic value added;

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  1. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
  2. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
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Cited by:
  1. Ilinca HOT?RAN & Andreea Ileana ZAMFIR, 2012. "Performance Measurements, Critical Facts to Business Growth – Exemplification on Automotive Industry," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(2), pages 363-370, December.

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