This paper shows that even in a unionised labour market net and gross profit sharing as well as revenue sharing are isomorphic. Neither the capital stock nor the wage/employment combination depends ...on the deductibility of base wages and/or capital costs from the share base.
It is well known that profit sharing arrangements Pareto-dominate fixed wage contracts. Share agreements are (far) less than ubiquitous, however. This paper offers a solution of this ”fixed wage ...puzzle“ by adopting a perspective of bounded rationality. We show that share arrangements that fulfill ”plausible“ constraints are not generally acceptable to both firms and unions.
It is well known that profit sharing arrangements Pareto-dominate fixed wage contracts. Share agreements are (far) less than ubiquitous, however. This paper offers a solution of this "fixed wage ...puzzle“ by adopting a perspective of bounded rationality. We show that share arrangements that fulfill ”plausible“ constraints are not generally acceptable to both firms and unions.
Background: Since 1991, the working patterns in Finnish primary care health centres have been changing from traditional group practices towards local population responsibility (LPR) with personal ...patient lists. As a result, it was expected the services would change notably. Methods: A controlled intervention study included 30 health centres changing their working pattern to LPR and 30 control health centres. We studied the use of health services in both primary and secondary care in the areas served by these health centres during the transition phase from 1989 to 1993. Data were collected from national statistics. Results: The application of LPR was associated with an initial increase in physician consultations. Consultations for preventive care decreased in both LPR and control health centres. The use of specialized care and consultations with private physicians particularly decreased in large LPR municipalities. Conclusions: The most significant changes occurred in the working patterns of large health centres that had introduced LPR. A wide range of variations between the health centres was observed for all activities in both groups.
This paper provides a critical review of different systems of remunerations of pharmacists which exist in various countries: the percentage mark-up, the graduated mark-up, the capitation system, the ...fee for service system and mixed system. In these different systems, we refer to the various ways the provisions of pharmaceutical services are paid and reimbursed rather than how persons who physically deliver the services are paid. Therefore, the differences among various types of remuneration may not impact directly the level of responsibility and motivations of the various employees or owners in contact with the patient. The dispensing service remains the essential service of the pharmacist in all systems. However, according to the types of remuneration, the revenue of the pharmacist can be more or less linked to the volume and the price of drugs. Capitation systems, professional allowance and fees in particular can be used to shift the objective of the pharmacist towards increased professionalism. In each system, policy makers, when they can negotiate with the whole national profession, can use the remuneration system to achieve public policy objectives such as cost containment, better drug use or provisions of large packages of services. This paper discusses to what extent each system can contribute to such objectives. In order to achieve public policy objectives, it may be time to shift the valuation of pharmaceutical services towards more safe and effective therapy instead of safe and effective drugs.
This Article examines the relationship between the degree of inclusion of micro-, small and medium-sized enterprises (MSP) in management activities and remuneration strategies and employee ...satisfaction with remuneration. In contrast to other studies analyzing the effectiveness of remuneration systems from the point of view of managers, the authors adopted the perspective of employees. The empirical part of the article presents conclusions from the analysis of such factors as: strategic awareness of employees, their involvement in setting operational goals, as well as the inclusion of staff in the discussion on the achievements of the organization. The authors formulated the following three hypotheses. H1: employees included in management activities prefer salaries based on achievements. H2: employees included in management activities are more satisfied with their salaries. H3: micro-, small and medium-sized enterprises do not prefer participatory forms of management, which makes them less attractive employers compared to large enterprises. (original abstract)
Niniejszy artykuł bada relacje między stopniem włączenia pracowników mikro-, małych i średnich przedsiębiorstw (MSP) w działania zarządcze a strategiami wynagradzania oraz satysfakcją pracowników z wynagrodzeń. W odróżnieniu do innych studiów analizujących skuteczność systemów wynagradzania z punktu widzenia menedżerów w opracowaniu autorzy przyjęli perspektywę pracowników. Empiryczna część artykułu przedstawia wnioski z analizy takich czynników, jak: świadomość strategiczna pracowników, ich zaangażowanie w wyznaczanie celów operacyjnych, jak również włączenie personelu w dyskusję na temat dokonań organizacji. Autorzy sformułowali następujące trzy hipotezy. H1: pracownicy włączeni w działania zarządcze preferują systemy wynagradzania opierające się na dokonaniach. H2: pracownicy włączeni w działania zarządcze są bardziej zadowoleni ze swoich wynagrodzeń. H3: mikro-, małe i średnie przedsiębiorstwa nie preferują partycypacyjnych form zarządzania, co czyni je mniej atrakcyjnymi pracodawcami w porównaniu z dużymi przedsiębiorstwami. (abstrakt oryginalny)
The model developed in this paper attempts to provide an explanation of the fact that Icelandic vessel owners and Icelandic skippers do not share costs of operation of a vessel. In the model a ...skipper is contracted to take a fishing vessel to the fishing ground. The skipper is remunerated with a share of the catch, subject to an agreed minimum. Skippers and vessel owners are modelled as if risk neutral. Skippers develop a fishing strategy which is more costly, the higher the value of the potential catch associated with that strategy. Costs that accrue are partly pecuniary (and shareable) and partly skipper-specific (and non- shareable). The conclusions of the paper demonstrate that given the assumptions of our model, a vessel owner should prefer a remuneration contract with a positive revenue share and zero cost share.
We examine the strategic interaction in the market for physician services when the total budget for reimbursement is fixed. We show that this prospective payment system involves ƒ{ compared to a ...fee-for-service remuneration system ƒ{ a severe coordination problem, which potentially leads to the "treadmill effect". For the institutional setting of German primary physician service we provide evidence for decreasing reimbursement per treatment, which is consistent with theoretical predictions. When market entry is possible, a budget can be efficiency enhancing, if in addition a price floor is used.
Under team production, those who monitor individual productivity are usually the only ones compensated with a residual that varies with the performance of the team. This pattern is efficient, as is ...shown by the prevalence of conventional firms, except for small teams and when specialized monitoring is ineffective. Profit sharing in repeated team production induces all team members to take disciplinary action against underperformers through switching and separation decisions, however. Such action provides effective self-enforcemnt when the markets for team members are competitive, even for large teams using specialized monitoring. The traditional share system of fishing firms shows that for this competition to provide powerful enough incentives the costs of switching teams and measuring team productivity must be bellow. Risk allocation may constrain the organizational design defined by the use of a share system. It does not account for its existence, however.
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