Skip to Main Content
Measuring and Managing Performance in Organizations
book

Measuring and Managing Performance in Organizations

by Robert D. Austin, Tom DeMarco, Timothy Lister
July 2013
Intermediate to advanced content levelIntermediate to advanced
240 pages
5h 36m
English
Addison-Wesley Professional
Content preview from Measuring and Managing Performance in Organizations

Chapter Eight. Designing Incentive Systems

The discussion thus far has focused on the agent. Now we turn to the principal to ask how she behaves in this two-dimensional situation. As before, the principal wants to maximize profit (defined as the difference between revenue generated by agent effort and the amount to be paid the agent). To increase revenues, she wants to increase value to the customer. Like the agent, she knows what the customer wants (the shape of his same-value lines, best-mix path, and so on) and wants to give him what he wants.1 But she is also wary of the increasing costs as the agent expends more and more effort. As has already been described, she can compare costs and revenues that would result from each allocation of effort ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Innovative Performance Support: Strategies and Practices for Learning in the Workflow

Innovative Performance Support: Strategies and Practices for Learning in the Workflow

Con Gottfredson, Bob Mosher

Publisher Resources

ISBN: 9780133488425