The paper explores the best incentive strength in the field of human resources management. We find that the incentive strength is dependent on three factors: the worker's extent of risk -aversion, the variance of the external shock and the sensitivity of effort to incentive. In addition, we also discuss the weight given to the signal that is correlated with the shock and can be referred to review the worker's effort.
机构:
Univ Hosp Modena, Mario Coppo Liver Res Ctr, Ctr Hereditary Liver Dis, Div Internal Med 2, I-41100 Modena, ItalyUniv Hosp Modena, Mario Coppo Liver Res Ctr, Ctr Hereditary Liver Dis, Div Internal Med 2, I-41100 Modena, Italy