Rossi, Alessandro (2001) The effective design of managerial incentive systems : combining theoretical principles and practical trade-offs. In «ROCK Working Papers», Università degli Studi di Trento. (Unpublished)
This article describes how theoretical developments in the field of agency and contract economics may be of great inspiration for the practical design of incentive- and performance-based compensation systems. Principles and stylized facts arising from the analysis of the principal-agent framework ond the economic theory of teams are presented by means of trade-offs that human resource practitioners should take into account when tailoring compensation systems to the specific needs of a particular organization.
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