1998 Volume 7 Issue 3 Pages 65-78
The agency model has been employed for discussing how to design incentive systems. In this paper, we introduce a model containing intrinsic motivation which has been given little attention in the former models, and discuss how to design incentive systems considering the traits of jobs. We discuss this problem with a model including parameters which represent motivating potential, productivity, and uncertainty of output of jobs, and obtain the following results: when 1) motivating potential is low 2) productivity is high, 3) uncertainty of output is low, the introduction of incentive payment is apt to be effective.
