A Field Study of the Impact of a Performance-Based Incentive Plan

Much management accounting research focuses on design of incentive compensation contracts. A basic assumption in these contracts is that performance-based incentives improve employee performance. This paper reports on a field test of the multi-period incentive effects of a performance-based compensation plan on the sales of a retail establishment. Analysis of panel data for 15 retail outlets over 66 months indicates a sales increase when the plan is implemented, an effect that persists and increases over time. Sales gains are significantly lower in the peak selling season when more temporary workers are employed.

Consequences of Influence Tactics Used With Subordinates, Peers, and the Boss

A field study was conducted to discover how a manager's use of 9 different influence tactics is related to target task commitment and the manager's effectiveness. The variables were measured with a questionnaire filled out by subordinates, peers, and the boss of each manager. The most effective tactics were rational persuasion, inspirational appeal, and consultation; the least effective tactics were pressure, coalition, and legitimating. Ingratiation and exchange were moderately effective for influencing subordinates and peers but were not effective for influencing superiors. Inspirational appeal, ingratiation, and pressure were used most in a downward direction; personal appeal, exchange, and legitimating were used most in a lateral direction; coalitions were used most in lateral and upward directions; and rational persuasion was used most in an upward direction.