THE EFFECTS OF MANAGER'S MEASUREMENT ON AGENT'S PERFORMANCE
GONG Qiguo, YANG Yuru, WANG Shouyang
Author information+
1. Graduate University of Chinese Academy of Sciences, Beijing 100080; 2. Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190
Performance measurement is an essential part of the design of any incentive system. The strength and value of incentive in firms are strongly
affected by the performance measures available. Whether performance measures are valuable depends on their distortion
to output and valuable performance measures should be in great consistency with the maximum value of actions. In this paper, we use a multi-task model to develop a three-party characterization of incentive and show how the efforts exerted by manager to improve performance measurement affect the strengths of incentive and optimal choices. This model is also applied to supply chain incentive.
GONG Qi-Guo
, YANG Yu-Ru
, WANG Shou-Yang. , {{custom_author.name_en}}.
THE EFFECTS OF MANAGER'S MEASUREMENT ON AGENT'S PERFORMANCE. Journal of Systems Science and Mathematical Sciences, 2011, 31(10): 1288-1296 https://doi.org/10.12341/jssms11708