Performance-based incentives in knowledge work: are agency models relevant?
by Robert D. Austin, Patrick D. Larkey
International Journal of Business Performance Management (IJBPM), Vol. 2, No. 1/2/3, 2000

Abstract: The economic importance of ''knowledge work'' has become widely accepted. Less widely accepted are the changes knowledge work requires in how we manage performance. This paper explores the differences between knowledge work and more traditional physical and managerial work, in the context of economic agency models, the most rigorous extant theoretical representations of how to manage performance. Assumptions derived from the characteristics of knowledge work are used to extend agency models. The conclusions about how to manage from this extended model are different from the conclusions of traditional agency models. Linking measured performance and compensation - a common recommendation that arises from interpretations of agency theories - is effective in knowledge work contexts only if knowledge workers are intrinsically motivated. We conclude that agency models and recommendations derived from them are relevant only to the extent that they employ modified assumptions consistent with the distinctive characteristics of knowledge work and knowledge workers.

Online publication date: Sun, 13-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Performance Management (IJBPM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com