{{ extends "global/Page.html" }} {{ block title }} Compensation {{ endblock }} {{ block content }}
{{ if player.role == "Employee" }}

You will receive compensation based on the points you earn during all 9 periods. At the end of the study, all points will be converted to USD ($) at a rate of 50 points = $1.00.

In each of the 9 periods, your earnings for each period will be:

{{ if player.condition == 1 or player.condition == 3 }} {{ else }} {{ endif }}

The team manager’s earnings for each period will be:



To illustrate, consider the following two independent examples.

{{ if player.condition == 1 or player.condition == 3 }}

Example 1 (Team meets or exceeds the target)

Suppose each team member contributes 16 points from their starting points toward increasing team output, and the team exceeds the target of 300, as shown below.

Team member Points contributed × Productivity = Increase in team output
Employee A 16 × 5 = 80
Employee B 16 × 7 = 112
Employee C 16 × 9 = 144
Total team output = 336

The team earns a 90-point bonus. After viewing peer evaluations, the manager will allocate the bonus between three team members. Suppose the manager allocates 30 points to each employee. Each employee’s compensation for the period would be as follows:

Team member Allocated Bonus Total points earned in the period
(10 + 20 – contributed + bonus)
Employee A 30 10 + 20 – 16 + 30 = 44
Employee B 30 10 + 20 – 16 + 30 = 44
Employee C 30 10 + 20 – 16 + 30 = 44
Total 90  

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 336) = 48.6 points

Example 2 (Team does not meet the target)

Suppose each team member contributes 8 points from their starting points toward increasing team output, and the team misses the target of 300, as shown below.

Team member Points contributed × Productivity = Increase in team output
Employee A 8 × 5 = 40
Employee B 8 × 7 = 56
Employee C 8 × 9 = 72
Total team output = 168

The team does not earn a 90-point bonus. The manager will have no bonus to allocate between the three team members. Each employee’s compensation for the period would be as follows:

Team member Allocated Bonus Total points earned in the period
(10 + 20 – contributed + bonus)
Employee A N/A 10 + 20 – 8 + N/A = 22
Employee B N/A 10 + 20 – 8 + N/A = 22
Employee C N/A 10 + 20 – 8 + N/A = 22
Total N/A  

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 168) = 31.8 points

{{ else }}

Example 1 (Team meets or exceeds the target)

Suppose each team member contributes 16 points from their starting points toward increasing team output, and the team exceeds the target of 300, as shown below.

Team member Points contributed × Productivity = Increase in team output
Employee A 16 × 5 = 80
Employee B 16 × 7 = 112
Employee C 16 × 9 = 144
Total team output = 336

The team is not subject to a 90-point penalty. The manager has no penalty to allocate between the three team members. Each employee’s compensation for the period would be as follows:

Team member Allocated Penalty Total points earned in the period
(40 + 20 – contributed - penalty)
Employee A N/A 40 + 20 – 16 – N/A = 44
Employee B N/A 40 + 20 – 16 – N/A = 44
Employee C N/A 40 + 20 – 16 – N/A = 44
Total N/A  

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 336) = 48.6 points

Example 2 (Team does not meet the target)

Suppose each team member contributes 8 points from their starting points toward increasing team output, and the team misses the target of 300, as shown below.

Team member Points contributed × Productivity = Increase in team output
Employee A 8 × 5 = 40
Employee B 8 × 7 = 56
Employee C 8 × 9 = 72
Total team output = 168

The team is subject to a 90-point penalty. After viewing peer evaluations, the manager will allocate the penalty between the three team members. Suppose the manager allocates 30 points to each employee. Each employee’s compensation for the period would be as follows:

Team member Allocated Penalty Total points earned in the period
(40 + 20 – contributed - penalty)
Employee A (30) 40 + 20 – 8 – 30 = 22
Employee B (30) 40 + 20 – 8 – 30 = 22
Employee C (30) 40 + 20 – 8 – 30 = 22
Total (90)  

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 168) = 31.8 points

{{ endif }} {{ elif player.role == "Manager" }}

You will receive compensation based on the points you earn during all 9 periods. At the end of the study, all points will be converted to USD ($) at a rate of 50 points = $1.00.

In each of the 9 periods, your earnings for each period will be:

Employees’ earnings for each period will be:

{{ if player.condition == 1 or player.condition == 3 }} {{ else }} {{ endif }}



To illustrate, consider the following two independent examples.

{{ if player.condition == 1 or player.condition == 3 }}

Example 1 (Team meets or exceeds the target)

Suppose each team member contributes 16 points from their starting points toward increasing team output, and the team exceeds the target of 300, as shown below.

Total points contributed × Average Productivity = Total team output
48 × 7 = 336

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 336) = 48.6 points

The team earns a 90-point bonus. After viewing peer evaluations, the manager will allocate the bonus between three team members. Suppose the manager allocates 30 points to each employee. Each employee’s compensation for the period would be as follows:

Team member Allocated Bonus Total points earned in the period
(10 + 20 – contributed + bonus)
Employee A 30 10 + 20 – 16 + 30 = 44
Employee B 30 10 + 20 – 16 + 30 = 44
Employee C 30 10 + 20 – 16 + 30 = 44
Total 90  

Example 2 (Team does not meet the target)

Suppose each team member contributes 8 points from their starting points toward increasing team output, and the team misses the target of 300, as shown below.

Total points contributed × Average Productivity = Total team output
24 × 7 = 168

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 168) = 31.8 points

The team does not earn a 90-point bonus. The manager will have no bonus to allocate between the three team members. Each employee’s compensation for the period would be as follows:

Team member Allocated Bonus Total points earned in the period
(10 + 20 – contributed + bonus)
Employee A N/A 10 + 20 – 8 + N/A = 22
Employee B N/A 10 + 20 – 8 + N/A = 22
Employee C N/A 10 + 20 – 8 + N/A = 22
Total N/A  

{{ else }}

Example 1 (Team meets or exceeds the target)

Suppose each team member contributes 16 points from their starting points toward increasing team output, and the team exceeds the target of 300, as shown below.

Total points contributed × Average Productivity = Total team output
48 × 7 = 336

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 336) = 48.6 points

The team is not subject to a 90-point penalty. The manager has no penalty to allocate between the three team members. Each employee’s compensation for the period would be as follows:

Team member Allocated Penalty Total points earned in the period
(40 + 20 – contributed - penalty)
Employee A N/A 40 + 20 – 16 – N/A = 44
Employee B N/A 40 + 20 – 16 – N/A = 44
Employee C N/A 40 + 20 – 16 – N/A = 44
Total N/A  

Example 2 (Team does not meet the target)

Suppose each team member contributes 8 points from their starting points toward increasing team output, and the team misses the target of 300, as shown below.

Total points contributed × Average Productivity = Total team output
24 × 7 = 168

The manager’s compensation for the period would be 15 points + 10% of total team output: 15 + (10% × 168) = 31.8 points

The team is subject to a 90-point penalty. After viewing peer evaluations, the manager will allocate the penalty between the three team members. Suppose the manager allocates 30 points to each employee. Each employee’s compensation for the period would be as follows:

Team member Allocated Penalty Total points earned in the period
(40 + 20 – contributed - penalty)
Employee A (30) 40 + 20 – 8 – 30 = 22
Employee B (30) 40 + 20 – 8 – 30 = 22
Employee C (30) 40 + 20 – 8 – 30 = 22
Total (90)  

{{ endif }} {{ endif }}

{{ next_button }} {{ endblock }}