• Title/Summary/Keyword: Performance Incentive

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SCHEMATIC APPROACH TO IMPROVE TIME PERFORMANCE OF HIGHWAY CONSTRUCTION CONTRACTS

  • Ralph D. Ellis ;Jae-Ho Pyeon
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.638-642
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    • 2005
  • This paper presents incentive application strategies and delay prevention strategies as schematic approaches to improve time performance of highway construction contracts. This research recognizes the importance of improving time performance during highway construction. Strategic solutions of the most core issues on time performance incentive contracting are identified. The suggested incentive application strategies develop criteria for applying time classification to projects, for assigning project time classifications to contractors and designers, and for determining appropriate incentive values in A (cost) + B (time cost) and other performance incentive contracts. The suggested delay prevention strategies develop criteria for determining the appropriate subsurface utility engineering (SUE) level and to develop best practices for avoiding utility relocation delays. A schematic approach for each strategy is developed. This paper also introduces current incentive contracting practices in Florida. The researchers obtained the information from experienced persons in the highway construction industry, including key highway contractors, designers, and Department of Transportation (DOT) and Federal Highway Administration (FHWA) personnel. The major focus of this research is to develop strategies and suggest approaches to improve time performance of highway construction contracts. For future study, practical tools to facilitate implementation of the suggested strategies should be developed, so that the criteria, implementation processes, and best practices developed may contribute to the current industry-wide effort to improve time performance.

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Surprising Incentive: An Instrument for Promoting Safety Performance of Construction Employees

  • Ghasemi, Fakhradin;Mohammadfam, Iraj;Soltanian, Ali Reza;Mahmoudi, Shahram;Zarei, Esmaeil
    • Safety and Health at Work
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    • v.6 no.3
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    • pp.227-232
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    • 2015
  • Background: In comparison with other industries, the construction industry still has a higher rate of fatal injuries, and thus, there is a need to apply new and innovative approaches for preventing accidents and promoting safe conditions at construction sites. Methods: In this study, the effectiveness of a new incentive system-the surprising incentive system-was assessed. One year after the implementation of this new incentive system, behavioral changes of employees with respect to seven types of activities were observed. Results: The results of this study showed that there is a significant relationship between the new incentive system and the safety performance of frontline employees. The new incentive system had a greater positive impact in the first 6 months since its implementation. In the long term, however, safety performance experienced a gradual reduction. Based on previous studies, all activities selected in this study are important indicators of the safety conditions at workplaces. However, there is a need for a comprehensive and simple-to-apply tool for assessing frontline employees' safety performance. Shortening the intervals between incentives is more effective in promoting safety performance. Conclusion: The results of this study proved that the surprising incentive would improve the employees' safety performance just in the short term because the surprising value of the incentives dwindle over time. For this reason and to maintain the surprising value of the incentive system, the amount and types of incentives need to be evaluated and modified annually or biannually.

The Operating Structure of Multiple Incentive Contracts : Emphasis on Structuring with the Performance Incentives (다차원 유인부 계약의 운영구조 -성과유인의 구조화를 중심으로-)

  • Kim, Chung-Bon
    • Journal of the military operations research society of Korea
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    • v.6 no.1
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    • pp.79-92
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    • 1980
  • In cost-only incentive contract the emphasis is the attainment of efficient and effective cost control. In contrast multiple incentives contract correlates contractor's profit motives with the generalized government objective function, the decision variables of which are performance or quality (technical progress), time or schedule (timely development and delivery) and the cost (efficient and effective cost control) Under multiple incentive structure, it is essential to formulate the trade-off curves between cost and performance, which are called iso-fee curves. Trade-off curves depict the combination of cost and performance achievement for which the contractor will be rewarded with the same fee. The basic function of trade-off curves is to show he the contractor will be motivated by incentive arragement to trade off or sacrifice the achievement in one incentive element for the acnievment in another.

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The Relative Effects of Individual vs. Group Monetary Incentive Systems with and without Feedback on Work Performance (상이한 성과급 분배 방식과 피드백 제공 여부가 근로자의 수행에 미치는 상대적 효과 비교)

  • Cho, Hang-Soo;Lee, Kye-Hoon;Moon, Kwang-Su;Oah, She-Zeen
    • The Journal of the Korea Contents Association
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    • v.17 no.3
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    • pp.359-369
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    • 2017
  • The purpose of this study was to examine whether the effect of feedback would mask the performance differences that would result from different incentive pay distribution. Five critical service behaviors were identified and measured daily at a gas station located in Seoul. Participants were 5 employees working at the gas station. Independent variables were the types of incentive distribution and feedback. After baseline (A), equally-distributed group incentive condition (B) was introduced, and individual incentive condition (C) was introduced in the next phase. Then, after the withdrawal condition (A'), equally-distributed group incentive with feedback condition (B') was introduced and finally, the individual incentive with feedback condition (C') was introduced. The results suggested that all employees showed higher work performance under individual incentive than equally-distributed group incentive system when feedback were not delivered. However, there was no difference in work performance between two incentive conditions in the phases in which feedback were delivered. These findings suggest that feedback can reduce performance differences between equally-distributed group incentives and individual incentives.

Study on the Influence of Psychological Culture Experiences on Job Performance - Culture Marketing Case of a Cosmetic Sales Organization for Internal Customers - (심리적 문화체험이 직무성과에 미치는 영향연구 - 화장품판매조직 내부고객을 위한 문화마케팅사례 -)

  • An, Jongsuk;Lee, Jeongman
    • Journal of Fashion Business
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    • v.16 no.5
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    • pp.74-87
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    • 2012
  • The service industry will be essentially extended during the economic growth and industrial development. Especially, the role of workers meeting the customers in service industry is very important from the view point of purchase intention. So many companies in service industry endeavor to increase the work efficacies of workers through the various prizes and incentives, and improve the job performance by additional education. Recently, the incentive tours are comprehensively accepted as an efficient tool to promote the loyalty and job performance of workers. The incentive tours enable the worker to gain the cultural experiences. They will experience not only the natural heritages and antiques, but also the local life culture and arts culture. The culture marketing for worker as the internal customer increase the worker's loyalty and the ties among workers, and therefore, their job performance will be increased. The empirical results (162 workers surveyed) showed the incentive tours have improved both the individual and group's job performance at a cosmetic sales organization. So it is recommend to plan the organization specific incentive tour in order to improve the productivity of the service organization.

The Impact of Wage Scheme and Transparency of Performance Evaluation on the Productivity (기업의 보상체계와 업무평가 투명성의 생산성 효과)

  • Lee, Sangheon
    • Journal of Labour Economics
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    • v.37 no.1
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    • pp.59-85
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    • 2014
  • This paper analyses an impact of wage scheme and transparency of performance evaluation on the productivity. The main findings in this paper are as follows: First, the effect of wage scheme based on seniority system on the productivity is worse off than the performance pay. Second, there is a positive relationship between an incentive and the productivity, but, in the case of firms which individually informs the results of performance evaluation to their workers, it shows the hump-shaped relationship. Third, though the wage scheme is based on the performance, if the evaluation system is not transparent, the impact of incentive on the productivity is disappeared. Consequently, this paper implies that the appropriate incentive and the transparent performance evaluation system are required so as to improve the productivity.

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Factors That Affect Project Time and Cost Performance during Highway Construction Using Incentive/Disincentive Provisions

  • Pyeon, Jae-Ho;Park, Moonseo;Jung, Sangsun;Park, Taeho
    • Land and Housing Review
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    • v.11 no.4
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    • pp.115-124
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    • 2020
  • Incentive/Disincentive (I/D) contract is designed for minimizing any disruption of traffic flow in road construction projects. I/D contracting projects have been evaluated with regard to time and cost performance in various states, more than 35 states. However, construction project managers and planners have little understanding of the project factors that affect the project time and cost performance of highway construction projects using I/D regulations. Therefore, the purpose of this research is to find factors that affect I/D project success or failure to improve the decision-making process for the implementation of I/D projects. In order to achieve the objectives of this research, the researchers collected I/D road construction project data from FDOT and performed evaluation for each collected project. Then, project data analysis to identify key factors that affect I/D project performance was performed. In conclusion, five significant factors for project time performance and six significant factors for project cost perfornace were identified and summarized.

EVALUATING THE EFFECTIVENESS OF ECONOMIC INCENTIVES ON CONSTRUCTION CLIENTS' HEALTH AND SAFETY PERFORMANCE - A DELPHI STUDY

  • Innocent Musonda;Jan-Harm Pretorius;Theodore Conrad Haupt
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.52-59
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    • 2013
  • The use of economic incentives to improve H&S performance in the construction industry in general, has been investigated by various scholars. However, few studies have looked at the impact of economic incentives on construction clients especially in the developing world. Therefore it was necessary to investigate specifically the impact of the economic incentive on client's H&S performance. Economic incentives are considered to be a proactive way of improving H&S performance. The investigation was conducted using a Delphi technique to determine the impact significance of the economic incentive or disincentive on construction clients' H&S performance. Findings from the study were that the economic factor had critical impact significance on clients' H&S performance. Further clients were 'very likely to' implement various H&S elements as a result of the economic incentive and disincentive. The paper will report on the findings from an analysis of impact significance of the economic incentives on clients. It will underscore the point that economic incentives or disincentives on construction clients are necessary to encourage them to actively participate in H&S performance improvement.

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Incentive Mechanism Design for Heterogeneous Networking Routing

  • Shu, Yongan;Shu, Ziyu;Luo, Bin
    • Journal of Communications and Networks
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    • v.16 no.4
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    • pp.458-464
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    • 2014
  • In the future, an increasing number of heterogeneous networks will be connected with each other. Each of them has its own interest. Existing systems lack good incentive mechanisms to attract more networks to participate in cooperations. In this paper, we design an auction-based incentive mechanism for routing protocols applied in heterogeneous networking which is computationally efficient, individually rational, profitable, and truthful. Through several simulations, we evaluate the performance and validate the properties of our mechanism.

The Comparative Study on Incentive System for Integrated Design of Low-Energy Buildings (저에너지건물 통합설계 인센티브 체계 비교 연구)

  • Lee, Byungyun
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.17 no.6
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    • pp.129-139
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    • 2016
  • The purpose of this paper was to comparatively investigate the efficient building incentives in Korea and foreign countries and to seek strategies to enhance low energy building integrated design market infrastructure in Korea. The structure of incentive policies were composed of four main component: 1) types of financial aids and beneficiaries, 2) energy performance criteria and verification methods, 3) supports for low energy building integrated design, and 4) funding sources for incentive programs. Every overseas incentive program has adopted a design team incentive along with building owners incentive and the range of target buildings have been extended from new construction to remodeling projects. The main system of the program is the performance standard through which projects were investigated and the level of incentive are decided. Initially, the integrated performance has been investigated through simulation methods, but the construction performance evaluation and energy monitoring methods are emerging. In addition, the direct support and educational support for integrated design has been provided to enhance the foundation of relative markets. Financial funding is also a key component of the program and more aggressive funding strategies have been adopted.