Incentives and rewards help align the interest of employees
The article says
“multiple rewards are always better than single rewards which
are usually combined to counteract the dysfunctional behavior
and produce desired result.”
It is not only about crowd sourcing but also solutions to
traditional business process.
Greater task complexity
Intelligent task division
Managerial structure for virtual teams
New social computing market is dominated by small
organizations employs limited number of simple incentive
The article analyze the use of mechanism in next generation
Different organizations employ different
combinations of incentive mechanisms.
Some mechanisms that organizations
commonly follow are
P.P.P (Pay Per Performance)
according to their contribution
Quantitative evaluation on labors
Not suitable for large distributed and team
dependent task. Measuring individual
contribution will be different.
2. Quota Systems & Discretionary Bonuses
Employees will be given some performance
When they reach the thresholds, bonus will be
In Quota, each employees will be having a
Quota of predefined thresholds.
3. Deferred Compensation
Similar to Quota System.
This system takes into 3 accounts or levels
T 0- Agent promises the reward
T 1- Performing the task
T 2- Received the reward
Suitable for companies having long lasting
4. Relative Evaluation
An entity is evaluated with respect to other
entity within a specified group.
Entity can be a human, movie or a product.
5. Team Based Compensation
The entire team is evaluated and rewarded
The reward can be specified equally or by
differentiating individual efforts within the
7. Psychological incentive mechanism
Provides input on agent performance to be
evaluated in the logical context defined in the
Contains the business logic for certain
It is meant to influence future behavior of
Rating of individuals based on the
measurable properties of their contribution.
It does not require human participation and
can be implemented entirely in software.
measuring work quality
Quantifies human oriented work by
combining all indefinable signals into one
subjective assessment signal.
Peer evaluation (peer voting)
Expression of collective intelligence where
members of a group evaluate the quality of other
members. This method work as long as size of the
voted group is long. As the voted group
increases, voters are unable to acquire all the new facts
needed to pass fair judgment.
Evaluating humans based on properties and
relations among the artifacts they produce. As the
artifacts are always produced for consumption by
Determining qualities ultimately left to the community
Employees future behavior can be influenced
through rewarding actions.
These changes are
an empirically proven
motivator. The structural change does not implied
positional advancement in management but
includes different teams at different times with
These actions are only those in which an
employee is influence solely by information
These states precisely how when and where to apply
rewarding actions with each actions consisting of at most
Expresses in the form of a logical formula over a
Helps formulate a condition over an employee's past
Filters out employees based on their relationships and
can be used to select numbers of a team.
New social computing market is dominated by
small organizations employs limited number of
simple incentive mechanism.
In such environment most social computing
companies need to use only one or two simple
The survey shows that as the cost of
quantitative, peer and indirect evaluation has
decreased , relative evaluation and PPP have
become the most popular incentive mechanisms
among social computing companies.