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Incentives and rewards help align the interest of employees
and organization.
 The article says
“multiple rewards are always better than single rewards which
are usually combined to counteract the dysfunctional behavior
and produce desired result.”
Social Computing
 It is not only about crowd sourcing but also solutions to
traditional business process.
 It supports


 Greater task complexity
 Intelligent task division
 Managerial structure for virtual teams




New social computing market is dominated by small
organizations employs limited number of simple incentive
mechanism.
The article analyze the use of mechanism in next generation
o

o
1.





Different organizations employ different
combinations of incentive mechanisms.
Some mechanisms that organizations
commonly follow are
P.P.P (Pay Per Performance)
Employees
compensated
proportionally
according to their contribution
Quantitative evaluation on labors
Not suitable for large distributed and team
dependent task. Measuring individual
contribution will be different.
2. Quota Systems & Discretionary Bonuses
 Employees will be given some performance
matrices thresholds.
 When they reach the thresholds, bonus will be
provided
 In Quota, each employees will be having a
Quota of predefined thresholds.
3. Deferred Compensation
 Similar to Quota System.
 This system takes into 3 accounts or levels
T 0- Agent promises the reward
T 1- Performing the task
T 2- Received the reward
 Suitable for companies having long lasting
tasks
4. Relative Evaluation
 An entity is evaluated with respect to other
entity within a specified group.
 Entity can be a human, movie or a product.
5. Team Based Compensation
 The entire team is evaluated and rewarded
 The reward can be specified equally or by
differentiating individual efforts within the
team.
6. Promotion
7. Psychological incentive mechanism
Evaluation method
Provides input on agent performance to be
evaluated in the logical context defined in the
incentive condition.
 Incentive condition
Contains the business logic for certain
rewarding actions.
 Rewarding action
It is meant to influence future behavior of
agents

Quantitative evaluation
 Rating of individuals based on the
measurable properties of their contribution.
 It does not require human participation and
can be implemented entirely in software.
Subjective evaluation
 measuring work quality
 Quantifies human oriented work by
combining all indefinable signals into one
subjective assessment signal.
Peer evaluation (peer voting)
Expression of collective intelligence where
members of a group evaluate the quality of other
members. This method work as long as size of the
voted group is long. As the voted group
increases, voters are unable to acquire all the new facts
needed to pass fair judgment.
 Indirect Evaluation
Evaluating humans based on properties and
relations among the artifacts they produce. As the
artifacts are always produced for consumption by
others,
Determining qualities ultimately left to the community

Employees future behavior can be influenced
through rewarding actions.
Structural Changes
These changes are
an empirically proven
motivator. The structural change does not implied
positional advancement in management but
includes different teams at different times with
different people.
Psychological Actions
These actions are only those in which an
employee is influence solely by information

These states precisely how when and where to apply
rewarding actions with each actions consisting of at most
3 components.
1.
Parameter
Expresses in the form of a logical formula over a
specified number.
2 Time
Helps formulate a condition over an employee's past
behavior.
3. Structure
Filters out employees based on their relationships and
can be used to select numbers of a team.







New social computing market is dominated by
small organizations employs limited number of
simple incentive mechanism.
In such environment most social computing
companies need to use only one or two simple
incentive mechanism.
The survey shows that as the cost of
quantitative, peer and indirect evaluation has
decreased , relative evaluation and PPP have
become the most popular incentive mechanisms
among social computing companies.

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Incentives & Rewarding in Social Computing

  • 2. Incentives and rewards help align the interest of employees and organization.  The article says “multiple rewards are always better than single rewards which are usually combined to counteract the dysfunctional behavior and produce desired result.” Social Computing  It is not only about crowd sourcing but also solutions to traditional business process.  It supports   Greater task complexity  Intelligent task division  Managerial structure for virtual teams   New social computing market is dominated by small organizations employs limited number of simple incentive mechanism. The article analyze the use of mechanism in next generation
  • 3. o o 1.    Different organizations employ different combinations of incentive mechanisms. Some mechanisms that organizations commonly follow are P.P.P (Pay Per Performance) Employees compensated proportionally according to their contribution Quantitative evaluation on labors Not suitable for large distributed and team dependent task. Measuring individual contribution will be different.
  • 4. 2. Quota Systems & Discretionary Bonuses  Employees will be given some performance matrices thresholds.  When they reach the thresholds, bonus will be provided  In Quota, each employees will be having a Quota of predefined thresholds. 3. Deferred Compensation  Similar to Quota System.  This system takes into 3 accounts or levels T 0- Agent promises the reward T 1- Performing the task T 2- Received the reward  Suitable for companies having long lasting tasks
  • 5. 4. Relative Evaluation  An entity is evaluated with respect to other entity within a specified group.  Entity can be a human, movie or a product. 5. Team Based Compensation  The entire team is evaluated and rewarded  The reward can be specified equally or by differentiating individual efforts within the team. 6. Promotion 7. Psychological incentive mechanism
  • 6. Evaluation method Provides input on agent performance to be evaluated in the logical context defined in the incentive condition.  Incentive condition Contains the business logic for certain rewarding actions.  Rewarding action It is meant to influence future behavior of agents 
  • 7. Quantitative evaluation  Rating of individuals based on the measurable properties of their contribution.  It does not require human participation and can be implemented entirely in software. Subjective evaluation  measuring work quality  Quantifies human oriented work by combining all indefinable signals into one subjective assessment signal.
  • 8. Peer evaluation (peer voting) Expression of collective intelligence where members of a group evaluate the quality of other members. This method work as long as size of the voted group is long. As the voted group increases, voters are unable to acquire all the new facts needed to pass fair judgment.  Indirect Evaluation Evaluating humans based on properties and relations among the artifacts they produce. As the artifacts are always produced for consumption by others, Determining qualities ultimately left to the community 
  • 9. Employees future behavior can be influenced through rewarding actions. Structural Changes These changes are an empirically proven motivator. The structural change does not implied positional advancement in management but includes different teams at different times with different people. Psychological Actions These actions are only those in which an employee is influence solely by information 
  • 10. These states precisely how when and where to apply rewarding actions with each actions consisting of at most 3 components. 1. Parameter Expresses in the form of a logical formula over a specified number. 2 Time Helps formulate a condition over an employee's past behavior. 3. Structure Filters out employees based on their relationships and can be used to select numbers of a team. 
  • 11.    New social computing market is dominated by small organizations employs limited number of simple incentive mechanism. In such environment most social computing companies need to use only one or two simple incentive mechanism. The survey shows that as the cost of quantitative, peer and indirect evaluation has decreased , relative evaluation and PPP have become the most popular incentive mechanisms among social computing companies.