Research of Combinative Incentives of Manager based on Services Innovation

Abstract

The paper analyses combinative incentives by the reconciliation of outcome and behavior-based incentives schemes based on service innovation. According to the analysis of debate over manager incentives between OBI and BBI, the paper proposes the combinative incentives mode using both outcome and behavior-based criteria for rewarding manager based on the service innovation, then the change meaning of relative parameters in the model is deeply discussed and the significance of combination incentive contract is that the expected gains of the manager and the owner are increased under the restraints.