Business Administration, Management, and Operations Commons^™

Factors Influencing Award Of Compensation Contraacts: An Analysis Of Written Protocols, Marshall A. Geiger, Manash R. Ray, Narayan S. Umanath

Accounting Faculty Publications

This study reports the results of an analysis of written protocols collected in a laboratory experiment from 77 subjects while they were making compensation contract selection decisions. Each subject made compensation decisions for four divisional managers operating under them. The researchers varied the level of environmental uncertainty, as well as the level of perceived agent effectiveness. The results show that the type of factors considered by the individuals differed significantly. Subjects indicated that they focused more heavily on one of the two manipulated conditions, but not equally on both. It was also found that, overall, agent effectiveness factors weighed more …