Vergeten en kleine Flashcards
Performance measure
A performance measure is a qualifiable indicator used to assess how well an organization is achieving its desired objectives
Informativeness principle
compensation contracts should include any costless measure that carries incremental information on the agents action.
Sorting effect
Sorting employees in high- and low identification levels. This shows a difference with intrinsic motivation.
Relative identifaction
Identification on business unit level
Trust effect
using incentives to induce people to report honest can be perceived as a signal of distrust
Information leakage effect
Principal’s choice for an incentive system provides agent with indirect cues that dishonesty is the descriptive social norm
Predictive analytics
The use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data.
Participtive budgeting
higher-level managers aim to elicit information form lower-level employees in order to improve managerial decision making
Zero based budgeting:
Every number needs to be justified again every year
Selection effect
Decision makers choice to use PMs, is ‘related to characteristics of the decision maker’
Asymmetric adjustment of control
Principals are less willing to decrease controls over agent than increase controls over agents
financial meterialitt
firms need to disclose how societal changes influence the business model and financial situation
Impact materiality
Firms disclose how the firm impacts society and how firms help adress social important challenges
Incentive system
compensation for the agent reduces when submitted costs are higher
Self determination theory
Predict internalization
