I recommend Measuring and Managing Performance in Organizations[0] to anyone who decides to start tinkering with bonus schemes. It's a short, sharp, quite read

I recommend Measuring and Managing Performance in Organizations[0] to anyone who decides to start tinkering with bonus schemes. It's a short, sharp, quite readable explanation of why tying reward & punishment to metrics of difficult-to-observe work tends to quickly become destructive. [0] http://www.dorsethouse.com/books/mmpo.html http://www.dorsethouse.com/books/mmpo.html