TY - CHAP
T1 - Incentive Mechanisms and Their Impact on Project Performance
AU - Meng, Xianhai
PY - 2014/10/8
Y1 - 2014/10/8
N2 - Good performance characterizes project success and value for money. However, performance problems are not uncommon in project management. Incentivization is generally recognized as a strategy of addressing performance problems. This chapter aims to explore incentive mechanisms and their impact on project performance. It is mainly based on the use of incentives in construction and engineering projects. The same principles apply to project management in other industry sectors. Incentivization can be used in such performance areas as time, cost, quality, safety and environment. A client has different ways of incentivizing his contractor’s performance, e.g. (1) a single incentive or multiple incentives; and (2) incentives or disincentives or a combination of both. The establishment of incentive mechanisms proves to have a significant potential for relationship development, process enhancement and performance improvement. In order to ensure the success of incentive mechanisms, both contractors and clients need to make extra efforts. As a result, a link is developed among incentive mechanisms, project management system and project performance.
AB - Good performance characterizes project success and value for money. However, performance problems are not uncommon in project management. Incentivization is generally recognized as a strategy of addressing performance problems. This chapter aims to explore incentive mechanisms and their impact on project performance. It is mainly based on the use of incentives in construction and engineering projects. The same principles apply to project management in other industry sectors. Incentivization can be used in such performance areas as time, cost, quality, safety and environment. A client has different ways of incentivizing his contractor’s performance, e.g. (1) a single incentive or multiple incentives; and (2) incentives or disincentives or a combination of both. The establishment of incentive mechanisms proves to have a significant potential for relationship development, process enhancement and performance improvement. In order to ensure the success of incentive mechanisms, both contractors and clients need to make extra efforts. As a result, a link is developed among incentive mechanisms, project management system and project performance.
KW - Incentive mechanism, Project performance, Improvement, Reward
U2 - 10.1007/978-3-319-05915-0_17
DO - 10.1007/978-3-319-05915-0_17
M3 - Chapter (peer-reviewed)
SN - 9783319059143
VL - 2
T3 - International Handbooks on Information Systems 2015
SP - 1063
EP - 1078
BT - Handbook on Project Management and Scheduling Vol. 2
A2 - Schwindt, Christoph
A2 - Zimmermann, Jurgen
PB - Springer
ER -