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- PfP has to be based on quantifiable criteria
- employees with an instrumental work orientation concentrate on
performance criteria that are linked with pay
• Example: pay for sales
o Short-term maximization
o Neglect of customer satisfaction
o Neglect of customer information, deadlines, repairs etc.
o Reduced cooperation among salespeople
o Company performance will suffer in the long run
• These dilemmas increase with complexity of tasks
• Bonuses and stock options are usually not options of individual PfP