人事经济学（院选）Chapter 10 Rewarding Performance.pptxVIP

Chapter 10 Rewarding Performance Introduction After performance evaluation, how should the firm use the evaluation to motivate the employee? The most important reason to tie pay to performance is to increase employee effort and better align it with firm interests, and that is the focus in this chapter. We care about how the employee’s evaluation varies with effort, and how pay varies with the evaluation. Question: How should the firm vary with the performance evaluation? Three-Step Process for Design a Compensation Plan How Strong Should Incentives Be? Although performance may depend on multi