Keywords
Citation
Casas-Arce, P. (2010), "Relative performance compensation, contests, and dynamic incentives", Development and Learning in Organizations, Vol. 24 No. 2. https://doi.org/10.1108/dlo.2010.08124bad.010
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited
Relative performance compensation, contests, and dynamic incentives
Article Type: Abstracts From: Development and Learning in Organizations, Volume 24, Issue 2
Casas-ArceP. Martinez-Jerez F.A.Management Science (USA)August 2009 Vol. 55 No. 8Start page: 1306No. of pages: 15
Purpose – Explores the value of sales contests as effective mechanisms to energize a firm’s sales force. Design/methodology/approach – Describes the institutional setting of the study of a commodity market in a less-developed country, and a manufacturer that introduced a set of tournament aimed at motivating retailers to increase overall sales as well as the proportion of premium products sold, and to reduce variability in sales volume. Constructs a simple model of multistage tournaments, comprising a basic framework of a tournament with an infinite number of identical; participants, and the introduction of participant constraint and participants with heterogeneous ability. Discusses an empirical implementation of the model highlighting the incentive effects of the introduction of the tournament, dynamic incentives and rank distance, and economies of the tournament.Article type: Research paperISSN: 0025-1909Reference: 38AX815
Keywords: Compensation, Competition, Employees development, Motivation (psychology), Sales incentives, Salesforce