Redesigning Teams and Incentives in a Merger : An Experiment with Managers and Students

Autor: Claude Montmarquette, Jean-Louis Rullière, Marie Claire Villeval, Romain Zeiliger
Přispěvatelé: Dao, Taï, Université de Montréal - Département de Sciences Economique, Université de Montréal (UdeM), Groupe d'analyse et de théorie économique (GATE), Université Lumière - Lyon 2 (UL2)-Ecole Normale Supérieure Lettres et Sciences Humaines (ENS LSH)-Centre National de la Recherche Scientifique (CNRS)
Jazyk: angličtina
Rok vydání: 2004
Předmět:
JEL: C - Mathematical and Quantitative Methods/C.C9 - Design of Experiments/C.C9.C92 - Laboratory
Group Behavior
Executive and team-based compensation
subject pool effects
real task experiment
incentives
sorting
mergers
incentives
Strategy and Management
real effort experiment
Frankreich
executive and team-based compensation
subject pool effects
real effort experiment
incentives
sorting
mergers
Management Science and Operations Research
Affect (psychology)
executive and team-based compensation
subject pool effects
real task experiment
incentives
sorting
mergers
Task (project management)
Führungskräfte
Experiment
JEL: M - Business Administration and Business Economics • Marketing • Accounting • Personnel Economics/M.M5 - Personnel Economics/M.M5.M52 - Compensation and Compensation Methods and Their Effects
Pharmazeutische Industrie
0502 economics and business
ddc:330
C92
050207 economics
Marketing
real task experiment
[SHS.ECO] Humanities and Social Sciences/Economics and Finance
Fusion
Deutschland
executive and team-based compensation
Team composition
050208 finance
Executive compensation
Compensation (psychology)
M52
J33
05 social sciences
subject pool effects
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Gruppenarbeit
JEL: J - Labor and Demographic Economics/J.J3 - Wages
Compensation
and Labor Costs/J.J3.J33 - Compensation Packages • Payment Methods
Incentive
Work (electrical)
JEL: C - Mathematical and Quantitative Methods/C.C8 - Data Collection and Data Estimation Methodology • Computer Programs/C.C8.C81 - Methodology for Collecting
Estimating
and Organizing Microeconomic Data • Data Access
C81
mergers
Leistungsanreiz
Business
050203 business & management
sorting
Zdroj: HAL
Management Science
Management Science, INFORMS, 2004, 50 (10), pp.1379-1389
Management Science, 2004, 50 (10), pp.1379-1389
ISSN: 0025-1909
1526-5501
Popis: International audience; After a merger, company officials face the challenge of making compensation schemes uniform and of redesigning teams with managers from companies with different incentives, work habits and recruiting methods. In this paper, we investigate the relationship between executive pay and performance after a merger by dissociating the respective influence of shifts, which occur in both compensation incentives and team composition. The results of a real task experiment conducted with managers within a large pharmaceutical company not only show that changes in compensation incentives affect performance but also suggest that the sorting effect of incentives in the previous companies impact cooperation and efficiency after the merger. Replicating this experiment with students showed differences in strategy rather than in substance between the two groups of subjects with managers appearing performance driven while students are more cost driven.
Databáze: OpenAIRE
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