The Impact of Incentive Changes on Targeted Performance

Incentives represent a key tool for managing employee performance and aligning it with organizational goals. The thesis is designed to examine the impact of changes in incentives on performance. It further intends to contribute to addressing the challenge of designing incentive systems that remain aligned with evolving organizational objectives. The research is based on data from the branch network of a financial institution operating in the Czech Republic, where employees are remunerated through a commission-based system. A quantitative approach was applied using panel regression analysis with fixed effects. This was complemented by the calculation of elasticities. The results show that the effects of incentive changes vary across different products and that the relationship between unit commission and performance is asymmetric. The thesis provides theoretical insights into the compensation dynamics and practical recommendations for designing effective incentive systems in organizations.