Abstract
Mismatched incentives between individuals and organizations occur frequently. At times, individuals are led to undertake actions that benefit their immediate interests but which undermine organizational values. At other times, individuals, acting rationally, forego actions that would have created value for an organization or a community.
John D Aram examines several organizations and two communities through the framework of mismatched individual and organizational incentives. His analysis suggests that several paths exist for overcoming mismatched incentives and for achieving greater individual-organization integration. His observations raise various possibilities for managing organizations for higher performance and also suggest questions for further research.
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