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Performance Pay and Managerial Experience in Multitask Teams: Evidence from within a Firm

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  • Rachel Griffith
  • Andrew Neely

Abstract

This article exploits a quasi-experimental setting to estimate the impact that a commonly used performance-related pay scheme had on branch performance in a large distribution firm. The scheme, which is based on the Balanced Scorecard, was implemented in all branches in one division but not in another. Branches from the second division are used as a control group. Our results suggest that the Balanced Scorecard had some impact but that it varied with branch characteristics, and, in particular, branches with more experienced managers were better able to respond to the new incentives. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 27 (2009)
Issue (Month): 1 (01)
Pages: 49-82

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Handle: RePEc:ucp:jlabec:v:27:y:2009:i:1:p:49-82

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Web page: http://www.journals.uchicago.edu/JOLE/

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Cited by:
  1. Charness, Gary & Kuhn, Peter J., 2010. "Lab Labor: What Can Labor Economists Learn from the Lab?," IZA Discussion Papers 4941, Institute for the Study of Labor (IZA).
  2. Fuhai Hong & Tanjim Hossain & John List & Migiwa Tanaka, 2013. "Using a natural field experiment to test the theory of multitasking," Natural Field Experiments 00388, The Field Experiments Website.
  3. Fuhai Hong & Tanjim Hossain & John A. List & Migiwa Tanaka, 2013. "Testing the Theory of Multitasking: Evidence from a Natural Field Experiment in Chinese Factories," CESifo Working Paper Series 4522, CESifo Group Munich.
  4. Aydemir, Abdurrahman & Kirdar, Murat G., 2011. "Quasi-experimental impact estimates of immigrant labor supply shocks: the role of treatment and comparison group matching and relative skill composition," MPRA Paper 35423, University Library of Munich, Germany.
  5. Bogaard, Hein & Svejnar, Jan, 2013. "Incentive Pay and Performance: Insider Econometrics in a Multi-Unit Firm," IZA Discussion Papers 7800, Institute for the Study of Labor (IZA).

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