New Ways of Setting Rewards: The Beyond Budgeting Model Harvard Case Solution & Analysis

The vast majority of companies today use contracts with a fixed capacity to drive performance improvement. Key elements of this agreement are fixed annual targets backed by financial incentives. This intense pressure on the satisfaction of these contracts, which leads to a "game room", as leaders at all levels of the tooth against the company and the power to achieve their goals and earn their bonuses. Moreover, this process is often stressful, but it is can also lead to actions that destroy value for the company. However, there are a number of companies that are free from depending on the contract and incentives. they usually changed their evaluation and award process with a fixed relative measure. Explores issues of contracts with fixed and as an alternative incentive programs can be used to avoid the games and to provide managers with a fair number. "Hide
by Jeremy Hope, Robin Fraser Source: California Management Review 17 pages. Publication Date: July 1, 2003. Prod. # : CMR264-PDF-ENG

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