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Financial results controls Motivation controls - Coggle Diagram
Financial results controls
Motivation controls
rewards - ponishments
monetary vs non monetary
PORPUSE OF
INCENTIVES
motivation
inducing effert and directing effort
attraction/retention
risk averse - risk tolernat
information
decrease lack of direction
non control purposes
compesation variable with firm performance
COMPENSATION
PACKAGE
benefits
incentive compasation
short term plans vs long term plans
salary: fixed amount
DESIGN
ELEMENTS
shape of performance -
reward function
cutoffs lower and upper
size of awards
employees can be not confortable with risks on them
bonus determination
approach
formulaically: link performance and rewards
subjectively: non quantity measures
level and type
of measurement
indivual or company level
financil vs non-financial performance
single or multiple measures
criteria for
EVALUATING
reward systems
timely -> delays are demotivational
durable
understandable
reversible
large enought -> visibility
cost efficient -> minimal costs
valuable