Economics of Organisation -What are the problems that face the owners of firms in designing incentive pay schemes when work effort cannot be directly monitored and the outcomes of individual effort are not clear? What evidence is there that these schemes are successful? How can incentive schemes provide the wrong incentives?

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What are the problems that face the owners of firms in designing incentive pay schemes when work effort cannot be directly monitored and the outcomes of individual effort are not clear? What evidence is there that these schemes are successful? How can incentive schemes provide the wrong incentives?
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