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  • March–April 2014
  • Article

Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans

By: Doug J. Chung, Thomas Steenburgh and K. Sudhir
We estimate a dynamic structural model of sales force response to a bonus based compensation plan. Substantively, the paper sheds insights on how different elements of the compensation plan enhance productivity. We find evidence that: (1) bonuses enhance productivity... View Details
Keywords: Performance Productivity; Salesforce Management; Compensation and Benefits
Related
  • 08 Dec 2006
  • Working Paper Summaries

When Learning and Performance are at Odds: Confronting the Tension

Keywords: by Sara J. Singer & Amy C. Edmondson
  • March 2022 (Revised May 2022)
  • Case

Winning Business at Russell Reynolds (A)

By: Ethan Bernstein and Cara Mazzucco
In an effort to make compensation drive collaboration, Russell Reynolds Associates’ (RRA) CEO Clarke Murphy sought to re-engineer the bonus system for his executive search consultants in 2016. As his HR analytics guru, Kelly Smith, points out, that risks upsetting–and... View Details
Keywords: Compensation; Collaboration; Executive Search Firms; Consulting Firms; Compensation and Benefits; Restructuring; Human Resources; Human Capital; Management Practices and Processes; Organizational Culture; Organizational Change and Adaptation; Social and Collaborative Networks; Recruitment; Selection and Staffing; Talent and Talent Management; Consulting Industry; Employment Industry; Asia; Europe; Latin America; Middle East; North and Central America; South America; Oceania
Related
  • 19 Dec 2022
  • Research & Ideas

What Motivates People to Give Generously—and Why We Sometimes Don't

surprisingly difficult. Much later, in the second year of her PhD program, she discovered the field of behavioral economics and folded her non-academic interests into her research. For his part, Zlatev arrived at his PhD in business... View Details
Keywords: by Jen McFarland Flint, HBS Alumni Bulletin
  • 12 May 2021
  • Book

The Hard Truth About Being a CEO

Fubini, a senior lecturer in the Organizational Behavior Unit at Harvard Business School, poured that knowledge, along with a list of lessons learned from researching leaders past and present into the book Hidden Truths: What Leaders Need... View Details
Keywords: by Michael Blanding
  • 13 Jul 2021
  • Research & Ideas

Outrage Spreads Faster on Twitter: Evidence from 44 News Outlets

negative tweets engaged more users. Originating as internet novelties 15 years ago, social media platforms have altered everything from democracy to human relationships in ways that are hard to overstate. Governments around the world have... View Details
Keywords: by Kristen Senz; Media & Broadcasting
  • 2020
  • Article

A Practical Approach to Sales Compensation: What Do We Know Now? What Should We Know in the Future?

By: Doug J. Chung, Byungyeon Kim and Niladri B. Syam
Personal selling represents one of the most important elements in the marketing mix, and appropriate management of the sales force is vital to achieving the organization’s objectives. Among the various instruments of sales management, compensation plays a pivotal role... View Details
Keywords: Sales Compensation; Sales Management; Sales Strategy; Principal-agent Theory; Structural Econometrics; Field Experiments; Machine Learning; Artificial Intelligence; Salesforce Management; Compensation and Benefits; Motivation and Incentives; AI and Machine Learning
Related
  • 2018
  • Working Paper

Managing Through Organizational Change: Employee Alignment in the Presence of Unexpected Career Concerns

By: Ohchan Kwon and Jee-Eun Shin
This study examines performance consequences due to unexpected career concerns – layoff risks due to institutional reasons. Exploiting a company-wide announcement of a merger decision by management as a trigger event for unexpected career concerns, we examine employee... View Details
Keywords: Career Changes; Performance Measures; Incentives; M＆A; Employees; Personal Development and Career; Mergers and Acquisitions; Organizational Change and Adaptation; Performance; Motivation and Incentives
Related
  • 04 Mar 2014
  • First Look

First Look: March 4

Organizational Psychology and Organizational Behavior Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct By: Edmondson, Amy C., and Zhike Lei Abstract—Psychological safety describes people's... View Details
Keywords: Sean Silverthorne

    Sandra J. Sucher

    Sandra Sucher, professor of management practice at Harvard Business School, is an internationally recognized trust researcher. The Power of Trust, her third book, is based on two decades of global research on how companies build stakeholder trust and how,... View Details

    Keywords: apparel; banking; brokerage; clothing; fashion; financial services; furniture; hotels ＆ motels; retail financial services; retailing; service industry
    • 31 Mar 2009
    • First Look

    First Look: March 31, 2009

    Clean Hands: The Moral Psychology of Indirect Agency Authors:Neeru Paharia, Karim Kassam, Joshua Greene, and Max Bazerman Publication:Organizational Behavior and Human Decision Processes (in press) Abstract... View Details
    Keywords: Martha Lagace
    • Web

    Topics - HBS Working Knowledge

    (19) Annual Reports (2) Annuities (1) Arts (2) Asset Management (3) Asset Pricing (4) Assets (11) Attitudes (18) Auctions (4) Balanced Scorecard (11) Banks and Banking (30) Behavioral Finance (7) Behavior... View Details
    • Web

    2023 Reunion Presentations - Alumni

    Behavioral Finance and Financial Stability Project, have made tremendous strides in predicting financial market crashes, panics, and crises. Participants left this session understanding the state of the art in identifying financial market... View Details
    • 15 Nov 2022
    • Book

    Stop Ignoring Bad Behavior: 6 Tips for Better Ethics at Work

    something and didn't do anything.” In the new book Complicit: How We Enable the Unethical and How to Stop, Bazerman points to the Purdue example as emblematic of the troubling human tendency to go along with acts of wrongdoing, and he... View Details
    Keywords: by Pamela Reynolds
    • 04 Mar 2024
    • Research & Ideas

    Want to Make Diversity Stick? Break the Cycle of Sameness

    that diversity is good overall.” What’s driving these decisions? Chang speculates that a behavioral phenomenon known as “loss aversion,” in which people focus on avoiding losses rather than reaping potential gains, might be influencing... View Details
    Keywords: by Michael Blanding
    • 01 Nov 2020
    • News

    Good Leadership Is an Act of Kindness

    • Web

    HBS - The year in Review

    experienced colleagues. Assistant Professors Anjali M. Bhatt Organizational Behavior Julian De Freitas Marketing Summer R. Jackson Organizational Behavior Jung Koo Kang Accounting & Management Rebecca A.... View Details
    • 2024
    • Working Paper

    Determinants of Top-Down Sabotage

    By: Hashim Zaman and Karim R. Lakhani
    We investigate the conditions that motivate managers to impede the growth of talented subordinates due to fears of future competition for their own positions. Our research expands on existing tournament and contest theory literature that considers peer-to-peer sabotage... View Details
    Keywords: Succession Planning; Organizational Hierarchy; Compensation; Promotions; Tournaments; Talent and Talent Management; Organizational Structure; Employee Relationship Management; Performance Evaluation; Organizational Culture; Management Skills
    Related
    • 06 Jun 2011
    • Research & Ideas

    Why Leaders Lose Their Way

    highly successful in their respective fields and at the peak of their careers. This makes their behavior especially perplexing, raising questions about what caused them to lose their way: Why do leaders known for integrity and leadership... View Details
    Keywords: by Bill George
    • 01 Feb 2001
    • News

    What Makes a Good Leader

    authority on leadership — sees this phenomenon as a sign of the times. "The transition from the industrial age to the information age is a huge shift," he notes. "In all of human history, there have only been two other socioeconomic... View Details
    Keywords: Management