Abstract
Financial incentives has throughout several years within the private sector being discussed as the compensation of CEOs has to be linked with the performance of the organization with an aim to value maximizing for the stockholder. In recent years, the financial incentives have been given more and more impact in the public sector with an aim to make to the organization more effective and efficient. Earlier discoveries show a different perspective on how the financial incentives are being suitable for the public sector. Moreover, the area of research is not being well researched and different perceptions leads to the aim of the essay.
The purpose of this paper is to start from the agent-principal perspective and its assumptions that should apply to financial incentive systems to increase the efficiency of a Swedish public hospital. A deductive approach will apply when the starting point is the agent theory with their economic points of view on human behavior. Furthermore, the agent theory is complemented with theories which have a distinct point of view on organizations and people. Based on the thesis purpose, a combination method was applied to analyze the information from both interviews and questionnaire.
The thesis results are based on interviews with executives, economists, doctors, nurses and assistant nurses. The survey response consists of respondents who are doctors, nurses and assistant nurses. From the results it can be inferred that the agent theory and its assumption can be questioned, entailing a problem with applying the financial incentive system of the organization.
A better understanding of the financial incentive scheme and its suitability of the organization should be of interest because the organization can avoid the risk of using something that does not lead to the effect the organization wants.
Date of Award | 2015-Aug-06 |
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Original language | Swedish |
Supervisor | Eva Lövstål (Supervisor) & Sven-Olof Collin (Examiner) |
Educational program
- Degree of Bachelor of Science in Business and Economics
University credits
- 15 HE credits
Swedish Standard Keywords
- Social Sciences (5)
Keywords
- agency theory
- financial incentive system
- stewardship theory
- public organizations
- hospital