Risky Rewards: How Company Bonuses Affect Safety by Andrew Hopkins

By Andrew Hopkins

Monetary incentives have lengthy been used to attempt to steer specialist values and practices. contemporary occasions together with the worldwide monetary situation and the BP Texas urban refinery catastrophe were associated with such incentives, with commentators calling for a severe examine those structures given the catastrophic results. dicy Rewards engages with this debate, rather within the context of the current and power position of incentives to control significant twist of fate probability in damaging industries. It examines the level to which individuals reply to monetary incentives, the possibility of perverse results, and methods that almost all properly concentration consciousness on significant possibility danger. The booklet is predicated partially on an empirical learn of bonus preparations in 11 businesses working in unsafe industries, together with oil, gasoline, chemical and mining.

Show description

Read or Download Risky Rewards: How Company Bonuses Affect Safety PDF

Similar risk management books

Controls, Procedures and Risk (Securities Institute Operations Management)

'Controls, methods and chance' covers the abilities and approaches had to let the tracking and dealing with of danger and the authors specialize in systems layout, implementation and documentation. significant emphasis is usually given to the main controls and the significance of keep an eye on capabilities, audit and threat administration teams and coverage.

Understanding Market, Credit, and Operational Risk: The Value at Risk Approach

A step by step, genuine international consultant to using price in danger (VaR) versions, this article applies the VaR method of the size of marketplace hazard, credits threat and operational possibility. The e-book describes and evaluations proprietary types, illustrating them with useful examples drawn from genuine case stories.

Risk Management for Insurers, Second Edition

Everywhere in the globe insurers are dealing with the influence of the turmoil at the monetary markets, making it extra an important than ever to completely know how to enforce chance administration most sensible perform. during this well timed moment version, professional René Doff argues that Solvency II, which goals to enhance criteria of chance evaluation, might be considered as a chance.

Finance and the Behavioral Prospect: Risk, Exuberance, and Abnormal Markets

This publication explains how investor habit, from psychological accounting to the flamable interaction of wish and worry, impacts monetary economics. The transformation of portfolio concept starts with the id of anomalies. Gaps in conception and behavioral departures from rationality spur momentum, irrational exuberance, and speculative bubbles.

Extra info for Risky Rewards: How Company Bonuses Affect Safety

Example text

Nor can these non-economic values be unified with economic considerations in a single all-embracing concept of utility. To do so renders the concept of utility tautologous. If it is impossible to conceive of non-utility maximising behaviour, the theory that behaviour is utilitymaximising loses all predictive power. See Etzioni, 1988, pp. 25–31. Evidence to support these general claims will be found in Etzioni, 1988. Ariely, 2009. Yeh, 2010, p. 112. Pink, 2009, p. 55. See references in Pink, 2009, p.

19. 27 Ibid. 28 Op. , p. 20. 29 Hawke, op. , p. 18. 30 Pink, 2009, p. 49. 31 Hopkins, 2008. 32 For example, here is what one worker wrote in a culture survey at the Texas City Refinery in 2004: “Auto accident en route to sister site – unavoidable – but we were treated as if we caused the accident even though the other driver was cited. Forced to come to work via taxi when unable to drive and under pain medication which causes drowsiness – bad headache – unable to perform job; management was trying to avoid a lost-time from work.

For such industries, his vision might best be seen as a long-term or aspirational goal. Risky Rewards 24 If we focus again on the fact that in the corporate world bonuses are paid on the basis of performance evaluations, there is another reason to doubt the relevance of the pre-school drawing experiment and others like it. Performance evaluations are based on how well the employee has performed in relation to what are often quite nebulous goals, such as contributing to cost savings. Here are the goals specified in a performance agreement we have seen for a drilling engineer.

Download PDF sample

Rated 4.15 of 5 – based on 22 votes