Incentives, cooperation, and risk sharing : economic and psychological perspectives on employment contracts /

This volume reflects the increased concern exhibited by US business leaders over the growing competition from abroad. US businesses are searching for ways to tie employee wages to their productivity and the profitability of the firm. A 1984 conference at New York University devoted to the theme, ``Economics of Incentives, Cooperation, and Risk Sharing,'' brought together a distinguished group of economists, industrial psychologists, and business and human resource professionals to investigate the relative merits of alternative forms of compensation. A product of the conference, this current volume contains clear and concise expositions of the theory and practice of various forms of employee incentives. Contributors address empirical results and broader implications of several forms of employee incentives. The tentative conclusion reached by the editor is that the evolution of modern industry continues to move compensation models away from individual incentives and toward group rewards. The inseparability of worker responsibilities encourages models that measure the results of cooperation, with consequent outcome-based compensation. This thoughtful and current collection should be considered carefully by students and professionals concerned with the market viability of US businesses and with labor management issues.-W.C. Bonifeld, Lilly Endowment