Title: Incentive Entropy and Warning Mechanism of Incentive System for Firms
Abstract:According to the theory of system management,the incentive system,a sub-system of firm system subordinates the law of entropy increase.An incentive system produces incentive entropy during its operati...According to the theory of system management,the incentive system,a sub-system of firm system subordinates the law of entropy increase.An incentive system produces incentive entropy during its operation,resulting in a decrease in incentive efficiency.Therefore,incentive entropy can be used as measurement of dynamics of an incentive system.An incentive warning mechanism was established to provide firms with a method to optimize their incentive systems in the right time by observing the changes and the time of the changes of incentive entropy.The incentive system for the high administrative level of a firm is the key to the whole incentive system,and it is dependent on the initial state.Through the butterfly effect,the whole incentive system can be improved by raising the efficiency of the incentive system for administrative level.Read More
Publication Year: 2005
Publication Date: 2005-01-01
Language: en
Type: article
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