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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.

Suggested Citation

  • Eduard Mădălin Dinu & Costin Ciora, 2012. "Best Practices in Incentive Compensation from the Perspective of Value-based Management," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 273-285, February.
    • Handle: RePEc:aes:amfeco:v:14:y:2012:i:31:p:273-285
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    3. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    4. Iulia David Sobolevschi & Monica Aureliana Petcu, 2008. "Integration Of Ethical Discourse In Economic Theory," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(23), pages 125-130, February.
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    Cited by:

    1. Sebastian Mãdãlin MUNTEANU, 2015. "Corporate Support for Sport and Organisational Performance. Case Study for Companies in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 101-111, March.
    2. Munteanu Sebastian Madalin, 2015. "The Economic And Social Coordinates Of Developing A Sport Entrepreneurship Index – Current Challenges And Prerequisites," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 224-229, June.
    3. 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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    More about this item

    Keywords

    best practices; incentive granting; value management; economic value added;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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