Revising the Fundamentals: Insights of Neuroeconomics for Economic Foundations of Performance-Related Pay in Public Management
Journal
Transformations in Business and Economics
ISSN
1648-4460
Type
journal article
Date Issued
2009-05-01
Author(s)
Helmuth, Utz
Abstract
ABSTRACT. This paper concentrates on recent findings in the upcoming field of neu-roeconomics where researchers use new neuroscientific methods to analyze economic be-havior. It focuses on the question what public management research can learn from neu-roeconomics to improve performance-related pay systems. Among those findings covered are intertemporal choices, fairness concerns and altruistic punishment. The results con-cerning social behavior are contrasting the neoclassical theory-based recommendations of public choice theory as competition among bureaucracies and performance-related salary. This paper proposes to integrate these findings in the public management theory and to revise established performance-related pay schemes and contracts. Furthermore, it dis-cusses possible problems which could arise with this new approach.
Language
English
Keywords
Performance-related pay
monetary incentives
New Public Management
Neuroeconomics.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Kaunas Faculty of Humanities, Vilnius University, Lithuania
Publisher place
Kaunas, Lithuania
Volume
8
Number
1
Start page
1
End page
17
Pages
17
Subject(s)
Division(s)
Eprints ID
43824
File(s)![Thumbnail Image]()
open.access
Name
Neuroeconomics_Final_TIBE_2009.pdf
Size
326.03 KB
Format
Adobe PDF
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