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Author:Banker, R.
Title:Contextual analysis of performance impacts of outcome-based incentive compensation
Journal:Academy of Management Journal
1996 : AUG, VOL. 39:4, p. 920-948
Index terms:MANAGEMENT
COMPENSATION
ECONOMICS
Language:eng
Abstract:This study investigated how contingency factors such as competitive intensity, customer profile, and behavior-based control influenced the effectiveness of an outcome-based incentive plan supporting a customer-focused service strategy. Empirical analyses were based on data for 77 months from 34 outlets of a major retailer, 15 of which implemented the incentive plan. Results support theoretical predictions: the positive impact of outcome-based incentives on sales, customer satisfaction, and profit increased with intensity of competition and proportion of upscale customers and decreased with level of supervisory monitoring.
SCIMA record nr: 158435
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