Target Setting in Incentive Contracts: The Impact of Peer Performance and Environmental Volatility on Ratcheting

2012 ◽  
Author(s):  
Jasmijn C. Bol ◽  
Jeremy Lill
Keyword(s):  
Incentive Contracts ◽  
Target Setting ◽  
Peer Performance ◽  
The Impact

The Impact of Target Setting on Managerial Motivation & Performance

2007 ◽  
Author(s):  
George Kominis ◽  
Clive R. Emmanuel ◽  
Sergeja Slapnicar
Keyword(s):  
Target Setting ◽  
The Impact

scholarly journals Information Acquisition and Its Incentives in an E-Commerce Supply Chain under the Offline Showroom Model

2021 ◽  
Vol 16 (5) ◽  
pp. 1791-1804
Author(s):  
Mengli Li ◽  
Xumei Zhang
Keyword(s):  
Supply Chain ◽  
Information Acquisition ◽  
Incentive Contracts ◽  
Demand Forecast ◽  
Competition Intensity ◽  
Demand Information ◽  
Optimal Information ◽  
Acquisition Strategy ◽  
The One ◽  
The Impact

Recently, the showroom model has developed fast for allowing consumers to evaluate a product offline and then buy it online. This paper aims at exploring the optimal information acquisition strategy and its incentive contracts in an e-commerce supply chain with two competing e-tailers and an offline showroom. Based on signaling game theory, we build a mathematical model by considering the impact of experience service and competition intensity on consumers’ demand. We find that, on the one hand, information acquisition promotes supply chain members to obtain demand information directly or indirectly, which leads to forecast revenue. On the other hand, information acquisition promotes supply chain members to distort optimal decisions, which results in signal cost. The optimal information acquisition strategy depends on the joint impact of forecast revenue, signal cost and demand forecast cost. Notably, in some conditions, the offline showroom will not acquire demand information even when its cost is equal to zero. We also design two different information acquisition incentive contracts to obtain Pareto improvement for all supply chain members.

scholarly journals POS0492 A MOLECULAR SIGNATURE RESPONSE CLASSIFIER PREDICTS THE LIKELIHOOD OF EULAR NON-RESPONSE TO TNF INHIBITOR THERAPIES IN RA: RESULTS FROM A RETROSPECTIVE COHORT ANALYSIS

2021 ◽  
Vol 80 (Suppl 1) ◽  
pp. 478.2-479
Author(s):  
L. Zhang ◽  
C. van der Tog ◽  
A. den Broeder ◽  
T. Mellors ◽  
E. Connolly-Strong ◽  
...  
Keyword(s):  
Rheumatoid Arthritis ◽  
Disease Activity ◽  
Predictive Value ◽  
Molecular Signature ◽  
Response Criteria ◽  
Treat To Target ◽  
Inadequate Response ◽  
Tnf Inhibitor ◽  
Target Setting ◽  
The Impact

Background:Following RA treatment recommendations, most people with rheumatoid arthritis (RA) begin targeted therapy with TNF inhibitors (TNFi), even though inadequate response to TNFi therapies is widespread. Treatment changes from one medication to the next are currently fueled by disease-activity measures and eventually result in disease control for most patients; however, this “trial-and-error” approach wastes precious time on ineffective treatments. A delay in reaching treat-to-target goals has a negative effect on patient burden and, possibly, disease progression.1 Useful predictors for TNFi response have been challenging to identify but a specific molecular signature response classifier (MSRC) test was shown to be predictive for inadequate response to TNFi therapies.2 The impact of such identification has the potential to result in improved patient outcomes, but further validation would be welcome, especially for response criteria other than ACR50, and in a stringent treat-to-target setting with lower baseline disease activity.Objectives:To validate the predictive value of the MSRC test in identifying those patients who do not meet EULAR good response criteria after 6 months of TNFi treatment.Methods:Data from a prospective cohort study conducted in the Sint Maartenskliniek (Nijmegen, the Netherlands) of RA patients who started adalimumab or etanercept TNFi as their first biologic were included.3 Baseline RNA samples and clinical assessments were used to identify patients who had a molecular signature1 of non-response to TNFi therapy. Outcomes were calculated at six months using DAS28-CRP-based EULAR good response, and high and low confidence responders and non-responders were identified using Monte Carlo simulation with 2,000 repeats and 70% precision cut off. Outcome measurements were blinded for test results. Treatment switch before 6 months was imputed as non-response. Odds ratios and area under the ROC curve (AUC) assessments were used to evaluate the ability of the MSRC test to predict inadequate response at 6 months against EULAR good response criteria.Results:A total of 68 out of 88 RA patients were identified to have a high-confidence response status and were included in analyses (Table 1). EULAR good response was observed in 45.5% (31/68) of patients. Patients were stratified according to detection of a molecular signature of non-response with an AUC of 0.61. The odds that a patient with the molecular signature of non-response at baseline failed to achieve a EULAR good response at 6 months was four times greater than that of a patient lacking the molecular signature (odds ratio 4.0, 95% confidence interval 1.2-13.3).Table 1.Patient demographicsCharacteristicRA patients (N = 68)Age, median (SD)57 (11)Female, n (%)43 (63.2)CCP positive, n (%)34 (50.0)RF positive, n (%)38 (55.9)Prescribed adalimumab at baseline, n (%)11 (16.2)Prescribed etanercept at baseline, n (%)57 (83.8)Conclusion:In this validation study, the molecular signature of non-response identified patients who did not fulfill the EULAR good response criteria to TNFi therapies. The patient selection process for this study had limitations; additional analysis in an alternative cohort would further verify the performance of the MSRC test. Nevertheless, the test, previously validated for ACR50, now has been validated using EULAR good response in a treat-to-target setting.References:[1]Schipper LG et al, Time to achieve remission determines time to be in remission. Arthritis Res Ther 201[2]Mellors T, et al. Clinical Validation of a Blood-Based Predictive Test for Stratification of Response to Tumor Necrosis Factor Inhibitor Therapies in Rheumatoid Arthritis Patients. Network and Systems Medicine 2020[3]Tweehuysen L et al. Predictive value of ex-vivo drug-inhibited cytokine production for clinical response to biologic DMARD therapy in rheumatoid arthritis. Clin Exp Rheumatol 2019Disclosure of Interests:Lixia Zhang Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation, Celeste van der Tog: None declared, Alfons den Broeder Consultant of: Abbvie, Amgen, Cellgene, Roche, Biogen, Lilly, Novartis, Celltrion Sanofi, Gilead., Grant/research support from: Abbvie, Amgen, Cellgene, Roche, Biogen, Lilly, Novartis, Celltrion Sanofi, Gilead., Ted Mellors Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation, Erin Connolly-Strong Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation, Johanna Withers Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation, Alex Jones Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation, Viatcheslav Akmaev Shareholder of: Scipher Medicine Corporation, Employee of: Scipher Medicine Corporation

Enhancing Firm Competitiveness through Concurrent Implementation of TQM, JIT and TPM

2014 ◽  
Vol 660 ◽  
pp. 976-982
Author(s):  
Lukman Sukarma
Keyword(s):  
Empirical Evidence ◽  
Research Methodology ◽  
Company Performance ◽  
Insufficient Evidence ◽  
Target Setting ◽  
Performance Targets ◽  
World Class ◽  
The Impact ◽  
Simultaneous Implementation ◽  
World Class Manufacturing

As a continuation of the previous paper by the author for this conference, this article provides empirical evidence for the impact of concurrent implementation of TQM, JIT and TPM in enhancing company performance, and hence its competitiveness. In doing this, ingredients of World Class Manufacturing company performance are reviewed, hypotheses and research methodology are developed, and data are analysed to verify the hypotheses. It is confirmed that plants implementing TQM, JIT and TPM concurrently outperform those, which implement only one or two of the methods, and there is no difference in performance among plants using either one or two of the methods. Further investigation on the causes of difference in performance reveals that, in addition to simultaneous implementation of the three methods, the establishment of performance targets leads to better performance. However, there is insufficient evidence to claim that involving employees in target setting has an effect on performance.

scholarly journals Incentive Contract Design for the Water-Rail-Road Intermodal Transportation with Travel Time Uncertainty: A Stackelberg Game Approach

Entropy ◽  
2019 ◽  
Vol 21 (2) ◽  
pp. 161
Author(s):  
Wenying Zhang ◽  
Xifu Wang ◽  
Kai Yang
Keyword(s):  
Asymmetric Information ◽  
Travel Time ◽  
Design Problem ◽  
Stackelberg Game ◽  
Contract Design ◽  
Incentive Contracts ◽  
Optimal Time ◽  
Incentive Contract ◽  
Intermodal Transportation ◽  
The Impact

In the management of intermodal transportation, incentive contract design problem has significant impacts on the benefit of a multimodal transport operator (MTO). In this paper, we analyze a typical water-rail-road (WRR) intermodal transportation that is composed of three serial transportation stages: water, rail and road. In particular, the entire transportation process is planned, organized, and funded by an MTO that outsources the transportation task at each stage to independent carriers (subcontracts). Due to the variability of transportation conditions, the travel time of each transportation stage depending on the respective carrier’s effort level is unknown (asymmetric information) and characterized as an uncertain variable via the experts’ estimations. Considering the decentralized decision-making process, we interpret the incentive contract design problem for the WRR intermodal transportation as a Stackelberg game in which the risk-neutral MTO serves as the leader and the risk-averse carriers serve as the followers. Within the framework of uncertainty theory, we formulate an uncertain bi-level programming model for the incentive contract design problem under expectation and entropy decision criteria. Subsequently, we provide the analytical results of the proposed model and analyze the optimal time-based incentive contracts by developing a hybrid solution method which combines a decomposition approach and an iterative algorithm. Finally, we give a simulation example to investigate the impact of asymmetric information on the optimal time-based incentive contracts and to identify the value of information for WRR intermodal transportation.

Incentive structures in multi-partner project teams

2019 ◽  
Vol 27 (1) ◽  
pp. 49-65
Author(s):  
Jiaojie Han ◽  
Amnon Rapoport ◽  
Patrick S.W. Fong
Keyword(s):  
Incentive Contracts ◽  
Project Teams ◽  
Content Type ◽  
Information Transparency ◽  
Marginal Costs ◽  
Online Appendix ◽  
Multiple Partners ◽  
Project Outcome ◽  
Incentive Structures ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of incentive contracts in multi-partner project teams (MPPTs) on the agents’ effort expenditure and project performance, analyze how the agents allocate their efforts between production and cooperation and offer suggestions for project managers on how to design incentive contracts. Design/methodology/approach The paper proposes a model of MPPT in which agents are inequity-averse and their effort expenditures are exogenously bounded. An extensive numerical example is presented in online Appendix 2 to illustrate the theoretical results. Findings The paper suggests that if the potential benefit of the agents’ cooperation in MPPT is high or if both agents exhibit inequity aversion and the efforts’ marginal costs are low, then group-based incentive contracts outperform individual-based incentive contracts. It also shows that the impact of the incentive contract on the agents’ effort expenditure and project team performance is correlated with several critical project attributes. Originality/value Fulfilling a need to study the design of incentive structures in MPPTs, the paper complements the existing literature in three ways. First, in contrast to single-partner project teams, it considers projects with multiple partners where cooperation between them enhances the project outcome. Second, rather than focusing on individual production problems, it considers multi-task projects with constrained efforts that must be allocated between production and cooperation. Third, it analyzes the effects of changes in the project attributes, incentive intensities and information transparency on the effectiveness of the contract.

Optimal Team Size and Monitoring in Organizations

2008 ◽  
Vol 83 (3) ◽  
pp. 789-822 ◽  
Author(s):  
Pierre Jinghong Liang ◽  
Madhav V. Rajan ◽  
Korok Ray
Keyword(s):  
Environmental Variables ◽  
Pay For Performance ◽  
Incentive Contracts ◽  
Team Size ◽  
Team Production ◽  
Trade Off ◽  
Team Structure ◽  
Production Team ◽  
Equilibrium Level ◽  
The Impact

We formulate and analyze a model of team structure and monitoring within a Linear-Exponential-Normal (LEN) agency framework. We incorporate three key instruments in the internal design of an organization involving team production: team size, monitoring activities, and incentive contracts. We show that the complex tradeoffs among these instruments lead to surprisingly simple implications. One such result is that the equilibrium level of pay-for-performance for workers is attenuated and is, at times, invariant to most environmental variables of interest. As such, our model helps explain the empirical puzzle of the lack of a trade-off for risk/incentives shown in standard agency models. Our work also demonstrates the presence of complementarities between team size and monitoring, and between worker talent and managerial monitoring ability. Finally, we derive predictions about the impact of environmental variables on the choice of optimal team size, incentives, and employee quality, even in the presence of an external marketplace for talent.

The carbon footprint of an Australian satellite haemodialysis unit

2013 ◽  
Vol 37 (3) ◽  
pp. 369 ◽  
Author(s):  
Allan E. K. Lim ◽  
Anthony Perkins ◽  
John W. M. Agar
Keyword(s):  
Water Use ◽  
Carbon Footprint ◽  
Water Consumption ◽  
National Level ◽  
Healthcare Providers ◽  
The State ◽  
Measurement Unit ◽  
Target Setting ◽  
Local Factors ◽  
The Impact

Objectives. This study aimed to better understand the carbon emission impact of haemodialysis (HD) throughout Australia by determining its carbon footprint, the relative contributions of various sectors to this footprint, and how contributions from electricity and water consumption are affected by local factors. Methods. Activity data associated with HD provision at a 6-chair suburban satellite HD unit in Victoria in 2011 was collected and converted to a common measurement unit of tonnes of CO2 equivalents (t CO2-eq) via established emissions factors. For electricity and water consumption, emissions factors for other Australian locations were applied to assess the impact of local factors on these footprint contributors. Results. In Victoria, the annual per-patient carbon footprint of satellite HD was calculated to be 10.2 t CO2-eq. The largest contributors were pharmaceuticals (35.7%) and medical equipment (23.4%). Throughout Australia, the emissions percentage attributable to electricity consumption ranged from 5.2% to 18.6%, while the emissions percentage attributable to water use ranged from 4.0% to 11.6%. Conclusions. State-by-state contributions of energy and water use to the carbon footprint of satellite HD appear to vary significantly. Performing emissions planning and target setting at the state level may be more appropriate in the Australian context. What is known about the topic? Healthcare provision carries a significant environmental footprint. In particular, conventional HD uses substantial amounts of electricity and water. In the UK, provision of HD and peritoneal dialysis was found to have an annual per-patient carbon footprint of 7.1 t CO2-eq. What does this paper add? This is the first carbon-footprinting study of HD in Australia. In Victoria, the annual per-patient carbon footprint of satellite conventional HD is 10.2 t CO2-eq. Notably, the contributions of electricity and water consumption to the carbon footprint varies significantly throughout Australia when local factors are taken into account. What are the implications for practitioners? We recommend that healthcare providers consider local factors when planning emissions reduction strategies, and target setting should be performed at the state, as opposed to national, level. There is a need for more comprehensive and current emissions data to enable healthcare providers to do so.

scholarly journals Industrial dynamics in conditions of digitalization of economy

2021 ◽  
Vol 6 (3) ◽  
pp. 114-120
Author(s):  
E. V. Yakovleva ◽  
◽  
Yu. S. Ilina ◽  
Keyword(s):  
Analytical Study ◽  
Technological Development ◽  
Industrial Dynamics ◽  
Target Setting ◽  
Manufacturing Enterprises ◽  
Software Products ◽  
Industrial Enterprises ◽  
Russian Economy ◽  
Fixed Assets ◽  
The Impact

This paper examines the impact of digitalization on the industry of Russian economy. The results of an analytical study of the impact of digitalization on the dynamics of manufacturing enterprises are presented. The target setting is focused on the analysis of industrial dynamics in the context of the digitalization of the economy and the identification of prerequisites for the formation of an intelligent infrastructure for technological development in industry. The relevance of the study is due to the need to modernize industrial enterprises in the digital economy by updating fixed assets and putting into operation new equipment and software products (Compass-3D, SolidWorks, Mathcad, etc.) in accordance with the pace of modern technologization

Sign in / Sign up

Export Citation Format

Share Document