ACCT3206 Final: Promotions to reward management - Week 11
Document Summary
Promotions to reward management skills research paper 10 (campbell) This paper explored the sensitivity between promotion / demotion decisions for lower level managers and financial/non-financial performance measures. In addition, the paper examines the extent to which the behaviour of lower level managers reflect promotion-based incentives. Hence, the paper examines the learning vs effort effects of promotion-based incentives and whether an increase in effort lasts indefinitely past the point where the promotion decision is made. This paper explains that higher profit lead to a higher compensation, and higher service quality provide a higher probability to get the promotion and increase the profit. Therefore, manager would put their effort to improve the service quality to get the promotion. However, after several times that the manager cannot get the promotion, then the manager will diminish his effort and eventually become slow down like normal level which is the effort level without promotion incentives.
