IDEAS home Printed from https://ideas.repec.org/a/taf/tjorxx/v75y2024i2p395-409.html
   My bibliography  Save this article

Incentivizing centrally regulated units to improve performance: Pitfalls and requirements

Author

Listed:
  • Mohsen Afsharian
  • Heinz Ahn
  • Emmanuel Thanassoulis

Abstract

This paper explores the foundations for developing incentives for influencing units operating within centrally managed organizations. We begin by laying out the theory of managerial control in principal-agent contexts and draw from the incentive mechanisms developed in the related field of economic regulation. In particular, we highlight issues, differences and similarities in three recently proposed approaches under these circumstances, not only to compare them, but more importantly to motivate and arrive at requirements that should be met by incentivization systems in centrally managed multi-unit organizations. The stipulated requirements are not intended to be exhaustive but rather aim at defining conceptual foundations for further discussions and encouraging avenues for future research in this field. Our investigations are supported by graphical examples and an analysis of empirical data from banking.

Suggested Citation

  • Mohsen Afsharian & Heinz Ahn & Emmanuel Thanassoulis, 2024. "Incentivizing centrally regulated units to improve performance: Pitfalls and requirements," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 75(2), pages 395-409, February.
    • Handle: RePEc:taf:tjorxx:v:75:y:2024:i:2:p:395-409
    DOI: 10.1080/01605682.2023.2197931
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01605682.2023.2197931
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01605682.2023.2197931?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tjorxx:v:75:y:2024:i:2:p:395-409. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.