Sweetening the Carrot : Motivating Public Physicians for Better Performance

It is widely observed that many physicians working in public health facilities do not put in the required effort and time in their jobs. At the same time, many public physicians remain highly motivated, working long hours for little financial reward, in providing quality health services. This mix of...

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Main Author: Garcia-Prado, Ariadna
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/11/6415974/sweetening-carrot-motivating-public-physicians-better-performance
http://hdl.handle.net/10986/8563
id okr-10986-8563
recordtype oai_dc
spelling okr-10986-85632021-04-23T14:02:43Z Sweetening the Carrot : Motivating Public Physicians for Better Performance Garcia-Prado, Ariadna ABSENTEEISM ATTENTION COMPETENCE COMPETENCIES CROWDING DELIVERY OF HEALTH SERVICES ECONOMIC ANALYSIS ECONOMIC REVIEW EFFICIENCY WAGE THEORY EMPLOYMENT RELATIONSHIP ETHICS EXPENDITURES FEE SCHEDULE HEALTH CARE HEALTH ECONOMICS HEALTH PROMOTION HEALTH SECTOR HEALTH SECTOR REFORM HEALTH SERVICE HEALTH SERVICES HIGH WAGES HOSPITAL REVENUES HOSPITALS HOURS OF WORK IMPERFECT INFORMATION IMPLICIT CONTRACTS INCENTIVE STRUCTURES INCENTIVES FOR AGENTS INDIVIDUAL BEHAVIOR INDUSTRIAL PSYCHOLOGY INDUSTRIAL RELATIONS INFORMAL PAYMENTS INTERVENTION INTUITION INVOLUNTARY UNEMPLOYMENT JOBS LABOR CONTRACTS LABOR ECONOMICS LABOR MARKET LABOR PRODUCTIVITY LABOR RELATIONS MARGINAL COST MARGINAL COSTS MEDICAL CARE MOTIVATION NURSES PATIENT PATIENTS PAYMENTS FOR HEALTH SERVICES PERCEPTION PERSONALITY PERSONNEL PHYSICIANS POLICY RESEARCH PRESTIGE PRIMARY CARE PRIMARY HEALTH CARE PSYCHOLOGISTS PSYCHOLOGY PUBLIC HEALTH PUBLIC HEALTH CARE PUBLIC HOSPITALS PUBLIC SECTOR PUBLIC SERVICE REAL WAGE RECOGNITION RETENTION SOCIALIZATION SOCIOLOGISTS UNEMPLOYMENT UNEMPLOYMENT BENEFIT WAGE EFFECT WORK ENVIRONMENT WORK ETHIC WORK IN PROGRESS WORK PLACE WORKER WORKERS WORKING WORKING CONDITIONS WORKPLACE It is widely observed that many physicians working in public health facilities do not put in the required effort and time in their jobs. At the same time, many public physicians remain highly motivated, working long hours for little financial reward, in providing quality health services. This mix of provider-types poses fundamental challenges in the design of compensation mechanisms and monitoring regime in public facilities, where the objective of any reward-control paradigm is to improve the inoptimal performance of some physicians without compromising the effort of those already motivated. This paper presents a model to explain shirking behavior among public physicians and explores combinations of monitoring and incentive mechanisms that meet the twin objectives of inspiring the shirkers without losing the motivated. Drawing on the basic Shapiro-Stiglitz shirking model and the theory of social custom, the paper develops and presents a design of incentive structures that consists of punitive monitoring systems accompanied by non-pecuniary rewards. The analysis shows that intensive monitoring persuades the shirking physicians to improve their performance but may have a negative effect on the morale of those already motivated. The findings indicate that non-pecuniary rewards and recognition for the latter can potentially restore the incentives and counter the deleterious effect of increased supervision. The policy implications are discussed by presenting case studies in the health care context of developing countries. 2012-06-20T19:19:21Z 2012-06-20T19:19:21Z 2005-11 http://documents.worldbank.org/curated/en/2005/11/6415974/sweetening-carrot-motivating-public-physicians-better-performance http://hdl.handle.net/10986/8563 English Policy Research Working Paper; No. 3772 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSENTEEISM
ATTENTION
COMPETENCE
COMPETENCIES
CROWDING
DELIVERY OF HEALTH SERVICES
ECONOMIC ANALYSIS
ECONOMIC REVIEW
EFFICIENCY WAGE THEORY
EMPLOYMENT RELATIONSHIP
ETHICS
EXPENDITURES
FEE SCHEDULE
HEALTH CARE
HEALTH ECONOMICS
HEALTH PROMOTION
HEALTH SECTOR
HEALTH SECTOR REFORM
HEALTH SERVICE
HEALTH SERVICES
HIGH WAGES
HOSPITAL REVENUES
HOSPITALS
HOURS OF WORK
IMPERFECT INFORMATION
IMPLICIT CONTRACTS
INCENTIVE STRUCTURES
INCENTIVES FOR AGENTS
INDIVIDUAL BEHAVIOR
INDUSTRIAL PSYCHOLOGY
INDUSTRIAL RELATIONS
INFORMAL PAYMENTS
INTERVENTION
INTUITION
INVOLUNTARY UNEMPLOYMENT
JOBS
LABOR CONTRACTS
LABOR ECONOMICS
LABOR MARKET
LABOR PRODUCTIVITY
LABOR RELATIONS
MARGINAL COST
MARGINAL COSTS
MEDICAL CARE
MOTIVATION
NURSES
PATIENT
PATIENTS
PAYMENTS FOR HEALTH SERVICES
PERCEPTION
PERSONALITY
PERSONNEL
PHYSICIANS
POLICY RESEARCH
PRESTIGE
PRIMARY CARE
PRIMARY HEALTH CARE
PSYCHOLOGISTS
PSYCHOLOGY
PUBLIC HEALTH
PUBLIC HEALTH CARE
PUBLIC HOSPITALS
PUBLIC SECTOR
PUBLIC SERVICE
REAL WAGE
RECOGNITION
RETENTION
SOCIALIZATION
SOCIOLOGISTS
UNEMPLOYMENT
UNEMPLOYMENT BENEFIT
WAGE EFFECT
WORK ENVIRONMENT
WORK ETHIC
WORK IN PROGRESS
WORK PLACE
WORKER
WORKERS
WORKING
WORKING CONDITIONS
WORKPLACE
spellingShingle ABSENTEEISM
ATTENTION
COMPETENCE
COMPETENCIES
CROWDING
DELIVERY OF HEALTH SERVICES
ECONOMIC ANALYSIS
ECONOMIC REVIEW
EFFICIENCY WAGE THEORY
EMPLOYMENT RELATIONSHIP
ETHICS
EXPENDITURES
FEE SCHEDULE
HEALTH CARE
HEALTH ECONOMICS
HEALTH PROMOTION
HEALTH SECTOR
HEALTH SECTOR REFORM
HEALTH SERVICE
HEALTH SERVICES
HIGH WAGES
HOSPITAL REVENUES
HOSPITALS
HOURS OF WORK
IMPERFECT INFORMATION
IMPLICIT CONTRACTS
INCENTIVE STRUCTURES
INCENTIVES FOR AGENTS
INDIVIDUAL BEHAVIOR
INDUSTRIAL PSYCHOLOGY
INDUSTRIAL RELATIONS
INFORMAL PAYMENTS
INTERVENTION
INTUITION
INVOLUNTARY UNEMPLOYMENT
JOBS
LABOR CONTRACTS
LABOR ECONOMICS
LABOR MARKET
LABOR PRODUCTIVITY
LABOR RELATIONS
MARGINAL COST
MARGINAL COSTS
MEDICAL CARE
MOTIVATION
NURSES
PATIENT
PATIENTS
PAYMENTS FOR HEALTH SERVICES
PERCEPTION
PERSONALITY
PERSONNEL
PHYSICIANS
POLICY RESEARCH
PRESTIGE
PRIMARY CARE
PRIMARY HEALTH CARE
PSYCHOLOGISTS
PSYCHOLOGY
PUBLIC HEALTH
PUBLIC HEALTH CARE
PUBLIC HOSPITALS
PUBLIC SECTOR
PUBLIC SERVICE
REAL WAGE
RECOGNITION
RETENTION
SOCIALIZATION
SOCIOLOGISTS
UNEMPLOYMENT
UNEMPLOYMENT BENEFIT
WAGE EFFECT
WORK ENVIRONMENT
WORK ETHIC
WORK IN PROGRESS
WORK PLACE
WORKER
WORKERS
WORKING
WORKING CONDITIONS
WORKPLACE
Garcia-Prado, Ariadna
Sweetening the Carrot : Motivating Public Physicians for Better Performance
relation Policy Research Working Paper; No. 3772
description It is widely observed that many physicians working in public health facilities do not put in the required effort and time in their jobs. At the same time, many public physicians remain highly motivated, working long hours for little financial reward, in providing quality health services. This mix of provider-types poses fundamental challenges in the design of compensation mechanisms and monitoring regime in public facilities, where the objective of any reward-control paradigm is to improve the inoptimal performance of some physicians without compromising the effort of those already motivated. This paper presents a model to explain shirking behavior among public physicians and explores combinations of monitoring and incentive mechanisms that meet the twin objectives of inspiring the shirkers without losing the motivated. Drawing on the basic Shapiro-Stiglitz shirking model and the theory of social custom, the paper develops and presents a design of incentive structures that consists of punitive monitoring systems accompanied by non-pecuniary rewards. The analysis shows that intensive monitoring persuades the shirking physicians to improve their performance but may have a negative effect on the morale of those already motivated. The findings indicate that non-pecuniary rewards and recognition for the latter can potentially restore the incentives and counter the deleterious effect of increased supervision. The policy implications are discussed by presenting case studies in the health care context of developing countries.
format Publications & Research :: Policy Research Working Paper
author Garcia-Prado, Ariadna
author_facet Garcia-Prado, Ariadna
author_sort Garcia-Prado, Ariadna
title Sweetening the Carrot : Motivating Public Physicians for Better Performance
title_short Sweetening the Carrot : Motivating Public Physicians for Better Performance
title_full Sweetening the Carrot : Motivating Public Physicians for Better Performance
title_fullStr Sweetening the Carrot : Motivating Public Physicians for Better Performance
title_full_unstemmed Sweetening the Carrot : Motivating Public Physicians for Better Performance
title_sort sweetening the carrot : motivating public physicians for better performance
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/11/6415974/sweetening-carrot-motivating-public-physicians-better-performance
http://hdl.handle.net/10986/8563
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