Abstract
The paper, focusing on the context of Public Administration (PA), addresses the effects of monetary incentives in employees’ performance. In the Italian PA, the monetary incentives are distributed according to the D.L.150/09 (i.e., the monetary incentives are divided among the employees according to the employees’ performance) which is based on the rank order tournament. The paper investigates if this mechanism has positive and sustainable impacts on the employees’ performance in the short, middle, and long term. The employees’ performance has been modeled as a function of ability and motivation. The results of the computational experiments show a positive impact of the monetary incentives, distributed according to merit criteria, on the employees’ performance in the short, middle, and long term.
Highlights
Starting from the late 1970s many European countries have experienced a period of reforms in the public sector. e reforms regarded different fields and in particular from one side the management system, introducing control and planning system, and from the other the performance appraisal and the reward systems, fostering technical and cultural changes in the public sector [1,2,3,4,5,6,7,8]
Lgs. 29/ 1993 and Law n. 59/97. ese reforms tried to adopt new managerial instruments usually used in the private sector, but the results were a failure because the transferability of these instruments to the bureaucracy of the Public Administration (PA) is not always effective. e main causes of the failure were the constraints of PA, such as the possibility to make change only by means of laws and the uncertainty of the amount of resources. e last attempt of reform is the “Decreto Legislativo 27 ottobre
The efficiency connects the resources used with the results; the transparency means the possibility of the citizen to access to the activity of PA; the efficacy considers the measure of the action of the PA on the external environment; and the productivity means the performance of the employees and of the organization
Summary
Starting from the late 1970s many European countries have experienced a period of reforms in the public sector. e reforms regarded different fields and in particular from one side the management system, introducing control and planning system, and from the other the performance appraisal and the reward systems, fostering technical and cultural changes in the public sector [1,2,3,4,5,6,7,8]. According to NPM, performance management based on objectives, monitoring, and incentives must be introduced in public sector organizations [6]. Simulation is a useful tool to investigate complex systems in many different fields such as engineering, physics, mathematics, and economics and is becoming an increasingly significant methodological approach in organizations and strategy and public management field [11,12,13,14,15,16]. Among the different simulation models, the agent-based approach is very useful to investigate complex systems and networks characterized by a large number of simple interacting units [17,18,19,20,21,22,23,24,25,26].
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
