Designing Wage Contracts in Multi-Goal Organizations

Economic theory has long suggested the use of monetary incentives to motivate workers. In practice, however, public bureaucracies and nonprofit organizations are driven by a broader mission that often involves multiple operational goals, not all of...

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Main Authors: Giné, Xavier, Mansuri, Ghazala, Shrestha, Slesh A.
Format: Brief
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/114591516872389902/Designing-wage-contracts-in-multi-goal-organizations
http://hdl.handle.net/10986/29294
id okr-10986-29294
recordtype oai_dc
spelling okr-10986-292942021-05-25T10:54:43Z Designing Wage Contracts in Multi-Goal Organizations Giné, Xavier Mansuri, Ghazala Shrestha, Slesh A. WAGES POVERTY REDUCTION PAY-FOR-PERFORMANCE COMMUNITY ORGANIZATIONS MICROCREDIT SOCIAL BONUS MICROFINANCE Economic theory has long suggested the use of monetary incentives to motivate workers. In practice, however, public bureaucracies and nonprofit organizations are driven by a broader mission that often involves multiple operational goals, not all of which may translate equally well into measurable indicators. The authors worked with the largest partner of a prominent development organization in Pakistan called the Pakistan Poverty Alleviation Fund (PPAF) and its largest partner National Rural Support Program (NRSP) who share the same mission of reducing poverty. The study was conducted in all thirty five branch offices located in fifteen districts across Sindh, Punjab, and Khyber Pakhtunkhwa provinces, where NRSP was active. These results indicate that both production and cost complementarities are empirically relevant. Finally, the results suggest that financial incentives that crowd out intrinsic motivation can also affect performance by undermining the willingness of motivated employees to work in teams. 2018-01-31T22:08:32Z 2018-01-31T22:08:32Z 2018-01 Brief http://documents.worldbank.org/curated/en/114591516872389902/Designing-wage-contracts-in-multi-goal-organizations http://hdl.handle.net/10986/29294 English Finance & PSD Impact;No. 46 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief South Asia Pakistan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic WAGES
POVERTY REDUCTION
PAY-FOR-PERFORMANCE
COMMUNITY ORGANIZATIONS
MICROCREDIT
SOCIAL BONUS
MICROFINANCE
spellingShingle WAGES
POVERTY REDUCTION
PAY-FOR-PERFORMANCE
COMMUNITY ORGANIZATIONS
MICROCREDIT
SOCIAL BONUS
MICROFINANCE
Giné, Xavier
Mansuri, Ghazala
Shrestha, Slesh A.
Designing Wage Contracts in Multi-Goal Organizations
geographic_facet South Asia
Pakistan
relation Finance & PSD Impact;No. 46
description Economic theory has long suggested the use of monetary incentives to motivate workers. In practice, however, public bureaucracies and nonprofit organizations are driven by a broader mission that often involves multiple operational goals, not all of which may translate equally well into measurable indicators. The authors worked with the largest partner of a prominent development organization in Pakistan called the Pakistan Poverty Alleviation Fund (PPAF) and its largest partner National Rural Support Program (NRSP) who share the same mission of reducing poverty. The study was conducted in all thirty five branch offices located in fifteen districts across Sindh, Punjab, and Khyber Pakhtunkhwa provinces, where NRSP was active. These results indicate that both production and cost complementarities are empirically relevant. Finally, the results suggest that financial incentives that crowd out intrinsic motivation can also affect performance by undermining the willingness of motivated employees to work in teams.
format Brief
author Giné, Xavier
Mansuri, Ghazala
Shrestha, Slesh A.
author_facet Giné, Xavier
Mansuri, Ghazala
Shrestha, Slesh A.
author_sort Giné, Xavier
title Designing Wage Contracts in Multi-Goal Organizations
title_short Designing Wage Contracts in Multi-Goal Organizations
title_full Designing Wage Contracts in Multi-Goal Organizations
title_fullStr Designing Wage Contracts in Multi-Goal Organizations
title_full_unstemmed Designing Wage Contracts in Multi-Goal Organizations
title_sort designing wage contracts in multi-goal organizations
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/114591516872389902/Designing-wage-contracts-in-multi-goal-organizations
http://hdl.handle.net/10986/29294
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