Perverse incentive

result was higher test scores for students within the school which in turn resulted in bonuses for the entire staff. In the article it mentioned East Lake Elementary School as one such school that participated in the cheating scandal (2011). According to the article superintendent Hall suggested that principals that did not meet the goals of the test would be replaced. This is an example of a negative incentive within the school district. Both teacher’s and principles were told by Hall to fear for their jobs if they could not bring up the test scores of their students. Our textbook describes…

Regardless of the type of situation, the initial impression that a person makes on another person, and the approach he or she takes to gain cooperation will have a lasting effect on the continuing relationship and the degree of success in accessing information. The approach a person uses will vary based on the situation: the environment; the status of the person; their personality, position, and their identity. But the combination of the experience level and personality of the person…

Acemoglu and Robinson make great strides in the institutional argument from North and Thomas’ start in Rise of the Western World. Their case is quite compelling in addressing the question of why are some countries so rich and some so poor. It’s appealing mainly because it all boils down to incentives: if masses are incentivized, a country will grow, if the elites alone are incentivized/hold the power, a country will stagnate. This argument is almost impossible to refute because it’s built on the…

reflect discrimination. Lazear (1979) in his long-term incentive contract model argues that “high-tenure workers are paid more than their marginal product, whereas newly employed workers are paid less than their marginal product.” (Neumark 2003) That said, employers would not offer wages as high as their previous employer to newly-hired older workers. This could explain the longer unemployment period of workers who suffer involuntary job losses (Chan, Stevens 2001), as older workers will find…

programs such as smoking cessation and weight management. The Pros of P4P In the best case scenario, P4P rewards the provider by offering a financial and non-financial incentives to provide superior care. According to HCI3 (2014), the most common set of design elements include perfomance measurement, incentive design, and transparency and consumer engagement. HCI3 delineates each category as follows: Performance Measurement Health care quality measures include structure, process, and outcome.…

work-life balance. The benefits package successfully aligns with the company’s value proposition. Assessing the Attractiveness of the Compensation Plan An organization’s compensation plan is only as attractive as the employees perceive it to be. AT&T’s compensation plan consists of a base pay plus incentive pay. Many companies are moving to incentive plans because of their popularity. According to WorldatWork (2016), “incentive plans represent the best, most consistent method to pay for…

The New Deal Program: Federal Emergency Relief Act (FERA) was established in the May of 1933. It was the first direct-relief procedure under the New Deal and was headed by Harry L. Hopkin. The three main goals of FERA were: (1) to be effective, (2) provide work for employable people on the relief rolls, and (3) to have a diverse variety of relief programs. FERA provided grants from the federal government to state governments for a variety of projects in fields such as agriculture, construction,…

When considering an incentive plan, the companies intent is to reward employees for their performance. The dilemma is determining which plan would best meet an organization's needs. First, an incentive plan that is well-designed can assist a company in meeting objectives by improving quality, customer service, and productivity. To be successful, the plan must appropriately address the company objectives and include measurable, realistic, and attainable goals. Next, Sally is debating between the…

restore the optimism and drive throughout this firm, I propose the implementation of incentives. An incentive, something that motivates the actions of an individual (Hackworth, 2015), can be grouped into four categories: remunerative, coercive, moral and social incentives (Johnson, 2015). Many leaders tend to use remunerative incentives as their first result when attempting to execute a spirit-lifting agenda. This enticement encourages an employee to behave in a particular manner because of the…

The video Science and persuasion discussed some interesting tactics on the art of persuasion. When I joined the Army in 1986, there were multiple facets of persuasion to entice young individuals to “Be All You Can Be”. There were bonuses, college money, and of course the adventure of travelling to foreign places. The persuasion that enticed me the most, was the Army College fund; whereas, one hundred dollars a month was taken from my pay for one year. In return, I would receive 100 % tuition…