TITLE

The Incentive Effects of Tournament Compensation Systems

AUTHOR(S)
Becker, Brian E.; Huselid, Mark A.
PUB. DATE
June 1992
SOURCE
Administrative Science Quarterly;Jun1992, Vol. 37 Issue 2, p336
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Tournament models have developed into an important component of the theoretical literature on organizational reward systems. However, with one exception there have been no empirical tests of the incentive effects of tournament models in a field setting. Drawing on a panel data set from auto racing, we show that the tournament spread (prize differential) does have incentive effects on both individual performance and driver safety, that these effects peak at higher spreads, and that controlling for the dollar value of the tournament spread, the prize distribution has little influence on individual performance.
ACCESSION #
9211164509

 

Related Articles

  • REVERSAL OF A SUCCESSFUL GAINSHARING PROGRAM: EXPERIMENTAL EVIDENCE OF RESIDUAL EFFECTS. Hanlon, Susan C.; Meyer, David G.; Taylor, Robert R. // Academy of Management Best Papers Proceedings;1992, p264 

    Field experiment results indicated that three months after the group bonus component of a 17- month gainsharing program was eliminated, but the participation component remained, residual effects existed. Higher levels of moral commitment and prosocial behavior and less intention to leave were...

  • Work on longer and die earlier. Phillipps, James // Money Marketing;10/28/2004, p1 

    Reports on the efforts of the government to convince people to work longer in Great Britain. Data from the Boeing U.S. pension scheme reveals the life expectancy of workers retiring at 55; Assertion of Hargreaves Lansdown pension research head Tom McPhail that lower income workers can not afford...

  • Less perky, more practical.  // Advertising Age;11/18/1991, Vol. 62 Issue 49, special section pS-10 

    This article reports on a Hewitt Associates survey of executive compensation in U.S. corporations as of November 1991. Perquisites are taking a back seat as greater portions of executive compensation are being placed at risk in the form of incentive arrangements. Perquisites also have become...

  • Snag top talent with creative bonus plans. Leon, Don // Advertising Age;8/20/2007, Vol. 78 Issue 33, p18 

    The article offers advice to advertising firms on attracting and keeping talented employees through bonus plans. The article advises using quarterly or monthly bonuses to keep employees from taking a yearly bonus and leaving. The article suggest using performance-based bonuses. The use of...

  • Cha-Ching! High Yield Brings High Bonuses. C. J. C. // Bank Loan Report;11/16/2009, Vol. 24 Issue 44, p2 

    The article offers information on the 2009/2010 Global Financial Overview & Compensation Report released by Operations Group. According to the conpensation study, leveraged loan and high yield bond professionals are posed to receive a bunos of 45% to 50%. Examples of these professionals are...

  • Bonus of contention. Mealing, Lisanne // Money Marketing;3/16/2006, p62 

    The article offers an advise on how employee can minimize tax on a £700,000 bonus from the employers in Great Britain. According to the author, the employee could choose to sacrifice some of the bonus and have it paid into a personal pension in the name of the employee. The employee could...

  • ARE YOU PAYING YOUR EMPLOYEES TO CHEAT? THE EFFECT OF COMPENSATION SCHEMES. Song, Fei; Cadsby, C. Bram; Tapon, Francis // Academy of Management Annual Meeting Proceedings;2009, Vol. 2009 Issue 1, p1 

    We compare misrepresentations of performance under a target-based compensation system with those under a linear piece-rate and a tournament-based bonus system using a laboratory experiment with salient incentives. An anagram game was employed as the experimental task. Results show that whether...

  • THE RELATIONSHIPS BETWEEN PERCEIVED REWARD SYSTEM FAIRNESS AND POLITICAL VICTIMIZATION, HAVING A SKILLFUL SUPERVISOR, AND CONFIDENCE IN TRAINING ADEQUACY. Tansky, Judith W.; Miceli, Marcia P. // Academy of Management Best Papers Proceedings;1992, p316 

    Using survey data from nearly 16,000 federal employees, we tested predictions concerning employee reactions to reward systems. Perceived reward system fairness was predicted by perceived reward instrumentality, political victimization, having a skillful supervisor, confidence in training...

  • Assessing the Merit of Merit Pay: Employee Reactions to Performance-Based Pay. Lowery, Christopher M.; Petty, M. M.; Thompson, James W. // Human Resource Planning;1996, Vol. 19 Issue 1, p26 

    This paper describes employee reactions to the implementation of a performance-based pay plan. Out of 8,000 employees from seven operating companies covered by the plan, 4,788 responded to three open-ended questions. The questions allowed employees to say basically anything they wanted about the...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics