This paper exploits a quasi-experimental setting to estimate the impact that a multi-dimensional group incentive 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.
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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number
W06/22.
Length: 41 pp. Date of creation: Nov 2006 Date of revision: Handle: RePEc:ifs:ifsewp:06/22
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