The authors’ affiliation is Research Institute of the Finnish Economy, Lönnrotinkatu 4 B 00120 Helsinki, Finland. E-mail: firstname.lastname@example.org, email@example.com. Funding by TT-säätiö is gratefully acknowledged. The data are proprietary; the authors are thus unable to release the data. Comments by Petri Böckerman, Panu Kalmi, and Terhi Maczulskij are appreciated.
Performance Measurement and Incentive Plans
Version of Record online: 21 JUN 2012
© 2012 Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 51, Issue 3, pages 645–669, July 2012
How to Cite
KAUHANEN, A. and NAPARI, S. (2012), Performance Measurement and Incentive Plans. Industrial Relations: A Journal of Economy and Society, 51: 645–669. doi: 10.1111/j.1468-232X.2012.00694.x
- Issue online: 21 JUN 2012
- Version of Record online: 21 JUN 2012
This paper explores performance measurement in incentive plans. On the basis of theory, we argue that differences in the nature of jobs between blue- and white-collar employees lead to differences in incentive systems. We find that performance measurement for white-collar workers is broader in terms of the performance measures, the organizational level of performance measurement, and the time horizon. The intensity of incentives is also stronger for white-collar employees. All of these findings are consistent with theory.