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Reference no. 9-490-048
Authors: Manton Gibbs
Published by: Harvard Business Publishing
Originally published in: 1990
Version: 30 November 1990

Abstract

Provides a brief analysis of issues in the design of an effective compensation system, with particular emphasis on incentives. Provides an analytic framework for thinking about compensation. Topics covered include the composition of the pay package, fringe benefits, and training. The analysis of incentives discusses the trade off between incentives and risk, the problem of performance measurement, and the use of promotions as incentive compensation. Designed for use with a teaching module on compensation.

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Abstract

Provides a brief analysis of issues in the design of an effective compensation system, with particular emphasis on incentives. Provides an analytic framework for thinking about compensation. Topics covered include the composition of the pay package, fringe benefits, and training. The analysis of incentives discusses the trade off between incentives and risk, the problem of performance measurement, and the use of promotions as incentive compensation. Designed for use with a teaching module on compensation.

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