45-915 Managing Through Incentives

6 units, Carnegie Mellon University

We live in the information age when inspiring and motivating employees becomes increasingly important. Aligning the objectives of workers, managers, and owners by providing them with appropriate incentives becomes an emerging paradigm in the modern business world. In this course, we learn how to reason about incentives between managers and employees, between managers and owners, and within a team of coworkers. We cover a broad range of incentive practices and applications including objective and subjective performance measurements, relative performance evaluations, relational contracts, and executive compensation. The course mostly relies on business cases, but also presents some rigorous material based on recent research.

Prerequisites: none listed

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