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factor theory, cognitive evaluation theory, expectancy theory, goal-setting theory, and equity theory. The many determinants influencing human judgment and decision-making highlights the complexity of understanding human behavior. Bonner grouped them into
Knowledge and personal involvement, cognitive processes, task variables, and environmental variables, abilities, intrinsic motivation, and other personal variables.
288:. Incentive effects are direct effects resulting from the incentive system improving performance. Sorting effects are rather indirect effects. They describe particular incentive systems that attract individuals with particular characteristics. For instance, variable, rather than fixed, compensation tends to attract individuals with higher skill levels and lower control believes (locus of control).
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A fundamental requirement of creating a working incentive system for individuals and the organization is understanding human behavior and motivators of human behavior. Relevant theories helping to understand human behavior include utility theory, principal-agent theory, need hierarchy theory, two
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In organizational psychology, economics and business an incentive system denotes a structure motivating individuals as part of an organization to act in the interest of the organization.
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Fehrenbacher, Dennis D.; Kaplan, Steven E.; Pedell, Burkhard (2017-03-01). "The relation between individual characteristics and compensation contract selection".
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Chow, C. W. (1983). 1983 Competitive
Manuscript Award: The Effects of Job Standard Tightness and Compensation Scheme on Performance: An Exploration of Linkages.
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Waller, W. S., & Chow, C. W. (1985). The self-selection and effort effects of standard-based employment contracts: A framework and some empirical evidence.
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Design of
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Design of
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372:. Contributions to Management Science. Springer Berlin Heidelberg. pp. 13–29.
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refers to a variety of fields, including biology, education, and philosophy.
310:. Contributions to Management Science. Physica-Verlag Heidelberg. 2013.
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Important effects induced by an incentive system are: an
429:"Designing and Managing Incentive Compensation Programs"
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338:Schneider, B. (1987). The people make the place.
257:Elements that are part of an incentive system:
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416:Judgment and decision making in accounting
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