Performance Pay and Managerial Experience in Multitask Teams: Evidence from within a Firm

Abstract

This article exploits a quasi-experimental setting to estimate the impact that a commonly used performance-related pay scheme had on branch performance in a large distribution firm. The scheme, which is based on the Balanced Scorecard, was implemented in all branches in one division but not in another. Branches from the second division are used as a control group. Our results suggest that the Balanced Scorecard had some impact but that it varied with branch characteristics, and, in particular, branches with more experienced managers were better able to respond to the new incentives.

Performance-related pay and labor productivity

“…Empirical evidence from a case study about the introduction of a balanced scorecard (a monitoring tool based on a wide range of information on linked activities) in a large multinational firm showed that due to the complexity and the large number of indicators, the overall effect on performance was negligible, if not negative. Only experienced managers performed better as they were able to effectively allocate effort within the branch [13].…”

Utilization of Balanced Scorecard and the Effect of its on the Financial Performace of Companies in the Czech Republic

“…Pouze studie Ittnera a kol. [22] a Griffitha a Neelyho [15] neprokázaly pozitivní vliv mezi vyuÏíváním BSC a podnikovou v˘konností. Velmi dÛleÏité jsou závûry ze studie Braama, Nijsena [6], ktefií poukazují na to, Ïe vyuÏívání BSC naznamená automaticky zv˘‰ení podnikové v˘konnosti.…”

“…Zdroj: [6], [7], [8], [9], [15], [16], [22] 2, XVII, 2014 úzce propojeno se strategií podniku, mÛÏe naopak podnikovou v˘konnost sniÏovat. Za zmínku stojí i studie Bankera a kol.…”

“…V˘sledky na‰eho v˘zkumu tedy nepotvrdily, Ïe vyuÏívání konceptu BSC pfiispívá k vy‰‰í finanãní v˘konnosti a jsou v souladu s v˘sledky Ittnera a kol. [22] a Griffitha a Neelyho [15]. Získané v˘sledky v‰ak nejsou konzistentní s podobnû zamûfien˘mi studiemi [6], [7], [8], [9], [16] …”

“…, and Griffith and Neely [15]. Different conclusions were then drawn by studies done by the following authors (Hoque and James, [16], Davis, Albright [8], Braam,Nijsen [6], Crabtree, DeBusk [7], DeGeuser, Mooraj, Oyon [9] …”