The Incentive Alternative Sociology Help

The Incentive Alternative

Some problems may be better handled by incentives than by regulation. For instance, consider the case of branch managers of corporations. ‘One corporation will devise a rule book for branch management and will have frequent inspections to see that the rules are followed. Another will hire the best managers it can find and allow them to make their own decisions as long as profits are satisfactory. The second corporation may have more success. Similar procedures may be followed in the effort to reduce industrial accidents. One method is to attempt to analyze every possible source of danger and write a manual of rules designed to prevent accidents. Since such rules are a bother, there must be frequent inspections to see that the rules are followed. This is typical bureaucratic procedure. An alternate procedure is to offer reward or punishment for results but leave the methods up to the individuals involved. Incentives are now used in the case of Workers’ Compensation. where the fees paid by ‘the company Ire based, in part, upon its accident rate. Incentives cannot replace rules and regulations everywhere, but they are less bother some and perhaps more effective than regulations wherever practical Despite their impersonations autocracies provide necessarily fairly efficiently For instance, interviews with a. sample of people using government nonages reported a quite. high level, of Satisfaction ,with. the treatment. they received ranging from 58 percent. satisfied with medical and hospital care to 88 percent satisfied with the way their retirement problems were handled by Social Security [Kahn et al., 1975, PPI 66-69].  Governmental, l educational, religious, and business activities Could :not be carried on without a bureaucracy and, apparently, many people are satisfied with the results’,

Posted on September 3, 2014 in Social and Institutions

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