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      • Faculty Publications  (152)

      Incentive SystemsRemove Incentive Systems →

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      • Article

      Analyzing Scrip Systems

      By: Kris Johnson, David Simchi-Levi and Peng Sun
      Scrip systems provide a nonmonetary trade economy for exchange of resources. We model a scrip system as a stochastic game and study system design issues on selection rules to match potential trade partners over time. We show the optimality of one particular rule in... View Details
      Keywords: "Repeated Games"; Stochastic Trust Game; Dynamic Program; P2P Lending; Scrip Systems; Artificial Currency; Non-monetary Trade Economies; Marketplace Matching; Currency; Operations; Game Theory
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      Johnson, Kris, David Simchi-Levi, and Peng Sun. "Analyzing Scrip Systems." Operations Research 62, no. 3 (May–June 2014): 524–534.
      • December 2013 (Revised September 2017)
      • Case

      Atlanta Schools: Measures to Improve Performance

      By: Robert Simons and Natalie Kindred
      The widespread cheating scandal that rocked the Atlanta public school system in 2010 and 2011 illustrates how high-stakes performance pressure, without sufficient risk controls, can drive dangerous behavior. After becoming superintendent of the low-income and... View Details
      Keywords: Atlanta; Test; Testing; Standardized Test; Standardized Testing; No Child Left Behind; NCLB; Cheating; Performance Pressure; Measurement; Incentives; Atlanta Public Schools; Management; Leadership; Ethics; Performance; Performance Evaluation; Performance Expectations; Risk Management; Education; Education Industry; United States; Georgia (state, US); Atlanta
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      Simons, Robert, and Natalie Kindred. "Atlanta Schools: Measures to Improve Performance." Harvard Business School Case 114-001, December 2013. (Revised September 2017.)
      • November 2013
      • Case

      GlaxoSmithKline in China (A)

      By: John A. Quelch and Margaret L. Rodriguez
      Four GlaxoSmithKline employees were accused of bribing Chinese health care workers to prescribe the company's drugs. The accusations brought to light the questionable incentive structures of the Chinese health care system and the pressure on companies to adhere to... View Details
      Keywords: Public Health; Pharmaceuticals; China; Bribery; CSR; Hong Bao; Health Care; Drug; GlaxoSmithKline; GSK; Witty; Government; Marketing; Health; Health Care and Treatment; Corporate Social Responsibility and Impact; Corporate Strategy; Corporate Governance; Business and Government Relations; Ethics; Pharmaceutical Industry; China; United Kingdom; United States
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      Quelch, John A., and Margaret L. Rodriguez. "GlaxoSmithKline in China (A)." Harvard Business School Case 514-049, November 2013.
      • 2013
      • Article

      Matching with Couples: Stability and Incentives in Large Markets

      By: Fuhito Kojima, Parag A. Pathak and Alvin E. Roth
      Accommodating couples has been a long-standing issue in the design of centralized labor market clearinghouses for doctors and psychologists, because couples view pairs of jobs as complements. A stable matching may not exist when couples are present. This article's main... View Details
      Keywords: Market Design; Marketplace Matching; Balance and Stability; Jobs and Positions; Family and Family Relationships; Health Care and Treatment; Employment Industry; Health Industry
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      Kojima, Fuhito, Parag A. Pathak, and Alvin E. Roth. "Matching with Couples: Stability and Incentives in Large Markets." Quarterly Journal of Economics 128, no. 4 (November 2013): 1585–1632.
      • 2013
      • Chapter

      The Most Successful CEOs Come from Within

      By: Joseph L. Bower

      The financial crisis of 2008 and the Great Recession caused a crisis of public confidence in business and American-style capitalism, with its focus on maximizing shareholder value. Corporate leaders understood that reform was needed and that they needed to commit... View Details

      Keywords: Governing and Advisory Boards; Management Succession; Business and Community Relations; Management Teams
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      Bower, Joseph L. "The Most Successful CEOs Come from Within." In How CEOs Can Fix Capitalism, edited by Raymond V. Gilmartin and Steven E. Prokesch, 124–127. Boston, MA: Harvard Business Review Press, 2013. Electronic.
      • December 2012 (Revised August 2020)
      • Case

      Rodan + Fields Dermatologists

      By: Das Narayandas, Michael Roberts and Liz Kind
      The case focuses on issues involved in managing the direct multilevel marketing sales consultants who sell R+F skin care products. The company is trying to better manage the inconsistent and highly variable recruitment behavior of the sales force i.e., the degree to... View Details
      Keywords: Marketing; Salesforce Management; Recruitment; Compensation and Benefits; Consumer Products Industry; Beauty and Cosmetics Industry; California
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      Narayandas, Das, Michael Roberts, and Liz Kind. "Rodan + Fields Dermatologists." Harvard Business School Case 513-067, December 2012. (Revised August 2020.)
      • November 2012 (Revised June 2013)
      • Case

      The Levees Repaired, a System Still Broken: Post Katrina Turnaround at the Orleans Public Defenders (A)

      By: Rosabeth M. Kanter and Olivia Leskinen
      Law Professor Ronald Sullivan was asked to lead a turnaround of the Orleans Public Defenders as a one-year assignment following Hurricane Katrina in 2005. The office was underfunded and had perverse incentives embedded throughout the system. Sullivan's new vision to... View Details
      Keywords: Innovation; Management; New Orleans
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      Kanter, Rosabeth M., and Olivia Leskinen. "The Levees Repaired, a System Still Broken: Post Katrina Turnaround at the Orleans Public Defenders (A)." Harvard Business School Case 313-026, November 2012. (Revised June 2013.)
      • November 2012
      • Article

      Empirical Observations on Longer-term Use of Incentives for Weight Loss

      By: Leslie K. John, George Loewenstein and Kevin Volpp
      Behavioral economic-based interventions are emerging as powerful tools to help individuals accomplish their own goals, including weight loss. Deposit contract incentive systems give participants the opportunity to put their money down toward losing weight, which they... View Details
      Keywords: Weight Loss; Obesity; Behavioral Economics; Intervention; Behavior; Motivation and Incentives
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      John, Leslie K., George Loewenstein, and Kevin Volpp. "Empirical Observations on Longer-term Use of Incentives for Weight Loss." Preventive Medicine 55, Supplement 1 (November 2012): S68–S74.
      • Article

      Employee Selection as a Control System

      By: Dennis Campbell
      Theories from the economics, management control, and organizational behavior literatures predict that when it is difficult to align incentives by contracting on output, aligning preferences via employee selection may provide a useful alternative. This study... View Details
      Keywords: Management Systems; Governance Controls; Employees; Selection and Staffing; Motivation and Incentives; Decision Making; Business Model
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      Campbell, Dennis. "Employee Selection as a Control System." Journal of Accounting Research 50, no. 4 (September 2012): 931–966.
      • August 2012
      • Case

      ARISE: A Destination-for-a-Day Spa

      By: Michael Beer and Lynda St. Clair
      A new Dallas-based health and beauty spa aims to use a highly distinctive human resource system as the foundation of its competitive strategy. By encouraging employees to act as "personal wellness coaches" (PWCs) with high commitment and broad responsibilities, the... View Details
      Keywords: Compensation and Benefits; Motivation and Incentives; Organizational Design; Organizational Culture; Service Delivery; Competitive Strategy; Innovation Strategy; Health Industry; Entertainment and Recreation Industry; Service Industry; Texas
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      Beer, Michael, and Lynda St. Clair. "ARISE: A Destination-for-a-Day Spa." Harvard Business School Brief Case 913-521, August 2012.
      • July 2012
      • Case

      Performance Management at Vitality Health Enterprises, Inc.

      By: John Bingham and Michael Beer
      Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is... View Details
      Keywords: Performance Evaluation; Motivation and Incentives; Compensation and Benefits; Talent and Talent Management; Health Industry; Consumer Products Industry; Manufacturing Industry; United States
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      Bingham, John, and Michael Beer. "Performance Management at Vitality Health Enterprises, Inc." Harvard Business School Brief Case 913-501, July 2012.
      • July 2012 (Revised February 2017)
      • Teaching Note

      Dovernet

      By: Robert Simons and Natalie Kindred
      This is the teaching note for Dovernet (HBS No. 112-061) View Details
      Keywords: Execution; Management Control Systems; Performance Measurement; Performance Goals; Incentives; Strategy
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      Simons, Robert, and Natalie Kindred. "Dovernet." Harvard Business School Teaching Note 113-011, July 2012. (Revised February 2017.)
      • July 2012
      • Class Lecture

      The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work

      By: Teresa M. Amabile
      What really makes people happy, motivated, productive, and creative at work? Professor Amabile's research, based on analyzing nearly 12,000 daily diaries of team members working on collaborative projects, reveals some surprising answers. Inner work life—a person's... View Details
      Keywords: Employee Motivation; Fostering Performance; Improving Creativity; The Importance Of Progress; Employee Attitude; Enhancing Work Life; Improving Productivity; Inner Work Life; Motivation and Incentives; Working Conditions; Creativity; Performance Productivity; Attitudes; Employees
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      Amabile, Teresa M. "The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work." Harvard Business School Class Lecture 813-701, July 2012.
      • June 2012 (Revised February 2017)
      • Teaching Note

      Henkel: Building a Winning Culture

      By: Robert Simons and Natalie Kindred
      This is the teaching note for Henkel: Building a Winning Culture (HBS No. 112-060) View Details
      Keywords: Execution; Management Control Systems; Performance Goals; Incentives; Levers Of Control; Strategy
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      Simons, Robert, and Natalie Kindred. "Henkel: Building a Winning Culture." Harvard Business School Teaching Note 112-087, June 2012. (Revised February 2017.)
      • April 2012 (Revised February 2017)
      • Case

      Dovernet

      By: Robert Simons and Natalie Kindred
      This case illustrates the implications of using stringent performance measurement systems to create performance pressure, motivate employee achievement, and sharpen a firm's competitiveness. It opens by describing the downsides of the ruthlessly competitive culture at... View Details
      Keywords: Motivation and Incentives; Information Technology; Competitive Advantage; Decision Choices and Conditions; Organizational Culture; Performance Evaluation; Compensation and Benefits; Web Services Industry; Information Technology Industry; Vancouver
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      Simons, Robert, and Natalie Kindred. "Dovernet." Harvard Business School Case 112-061, April 2012. (Revised February 2017.)
      • March 2012
      • Article

      The Incentive Bubble

      By: Mihir Desai
      The past three decades have seen American capitalism quietly transformed by a single, powerful idea—that financial markets are a suitable tool for measuring performance and structuring compensation. Stock instruments for managers, high-powered incentive contracts for... View Details
      Keywords: Economic Systems; Financial Markets; Executive Compensation; Motivation and Incentives; Corporate Governance; Equality and Inequality; Human Capital; United States
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      Desai, Mihir. "The Incentive Bubble." Harvard Business Review 90, no. 3 (March 2012).
      • 2012
      • Article

      Do Voters Demand Responsive Governments? Evidence from Indian Disaster Relief

      By: Shawn Cole, Andrew Healy and Eric Werker
      Using rainfall, public relief, and election data from India, we examine how governments respond to adverse shocks and how voters react to these responses. The data show that voters punish the incumbent party for weather events beyond its control. However, fewer voters... View Details
      Keywords: Political Elections; System Shocks; Natural Disasters; Policy; Motivation and Incentives; Public Opinion; India
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      Cole, Shawn, Andrew Healy, and Eric Werker. "Do Voters Demand Responsive Governments? Evidence from Indian Disaster Relief." Journal of Development Economics 97, no. 2 (March 2012): 167–181.
      • 2012
      • Working Paper

      Relational Contracts and Organizational Capabilities

      By: R. Gibbons and R. Henderson
      A large literature identifies unique organizational capabilities as a potent source of competitive advantage, yet our knowledge of why capabilities fail to diffuse more rapidly-particularly in situations in which competitors apparently have strong incentives to adopt... View Details
      Keywords: Competitive Advantage; Motivation and Incentives; Management Practices and Processes; Contracts; Competency and Skills; Relationships; Complexity
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      Gibbons, R., and R. Henderson. "Relational Contracts and Organizational Capabilities." Harvard Business School Working Paper, No. 12-061, January 2012.
      • Article

      Is It Time for Auditor Independence Yet?

      By: M. H. Bazerman and D. A. Moore
      Well before the collapse of Enron and Arthur Andersen, we argued that the auditing system had been corrupted by the incentives auditors face to please their clients. We stated that even honest auditors were incapable of independence within the current regulatory... View Details
      Keywords: Accounting Audits; Change; Crime and Corruption; Customer Satisfaction; Governing Rules, Regulations, and Reforms; Failure; Motivation and Incentives
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      Bazerman, M. H., and D. A. Moore. "Is It Time for Auditor Independence Yet?" Accounting, Organizations and Society 36, nos. 4-5 (May–July 2011): 310–312.
      • October 2011
      • Case

      Raleigh & Rosse: Measures to Motivate Exceptional Service

      By: Robert Simons and Michael Mahoney
      In January 2010, U.S. luxury goods retailer Raleigh & Rosse is being sued by its employees for encouraging "off the clock" hours. At the center of the class action lawsuit is the famous Raleigh & Rosse performance measurement system previously thought to be the core of... View Details
      Keywords: Control Systems; Performance Measurement; Goal Setting; Compensation; Incentives; Motivation; Sales Compensation; Motivation and Incentives; Goals and Objectives; Growth Management; Lawsuits and Litigation; Organizational Culture; Management Systems; Customer Focus and Relationships; Employees; Performance Evaluation; Compensation and Benefits; Retail Industry; United States
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      Simons, Robert, and Michael Mahoney. "Raleigh & Rosse: Measures to Motivate Exceptional Service." Harvard Business School Brief Case 114-353, October 2011.
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