Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55045 
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dc.contributor.authorLevenson, Alecen
dc.contributor.authorZoghi, Cindyen
dc.contributor.authorGibbs, Michaelen
dc.contributor.authorBenson, Georgeen
dc.date.accessioned2012-01-23-
dc.date.accessioned2012-02-07T10:42:58Z-
dc.date.available2012-02-07T10:42:58Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:101:1-20111011201en
dc.identifier.urihttp://hdl.handle.net/10419/55045-
dc.description.abstractWe study effects of a firm's attempt to optimize an existing incentive scheme to increase sales growth for direct store delivery workers. Before optimization workers reported Ratchet Effects that lowered productivity. The altered incentive plan offered higher compensation for increased sales relative to a sales growth target, and lower compensation for failing to meet the target. We gathered data on performance and attitudes at pilot and control sites before and after the change. Relative to control sites, sales growth increased in the pilot sites by two percent, a meaningful contribution to firm profits. We find no change in distortion of effort or manipulation of the performance measure. Workers did not substantially change number of hours worked, though allocation of time across tasks changed slightly. Despite increased productivity, workers continued to report Ratchet Effects after the change. We also find that an unplanned price increase midway through a fiscal year affected the extent of Ratchet Effects that year.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x5985en
dc.subject.jelM52en
dc.subject.jelJ33en
dc.subject.jelM12en
dc.subject.jelL81en
dc.subject.ddc330en
dc.subject.keywordincentivesen
dc.subject.keywordratchet effecten
dc.subject.stwLeistungsanreizen
dc.subject.stwHandelen
dc.subject.stwDirektmarketingen
dc.subject.stwKundendiensten
dc.subject.stwArbeitsproduktivitäten
dc.subject.stwUSAen
dc.titleOptimizing incentive plan design: A case study-
dc.typeWorking Paperen
dc.identifier.ppn683968270en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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