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Team-based employee remuneration: A balanced scorecard group target and weight selection-based bonus allocation

Hemantha S.B. Herath (Department of Accounting, Brock University, St. Catharines, Canada)
Wayne G. Bremser (Department of Accountancy, Villanova University, Villanova, Pennsylvania, USA)
Jacob G. Birnberg (Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, Pennsylvania, USA)

Accounting Research Journal

ISSN: 1030-9616

Article publication date: 1 July 2019




The purpose of this paper is to relate the balanced scorecard (BSC) to strategy and teams.


This paper proposes deriving performance targets and weights using a multiparty collaborative decision model that can be integrated into team-based bonus formulas.


Cross-functional division managers face a more complex problem in setting goals for individual managers. The proposed approach is intended to develop such goals and link them for team-based incentives. An example illustrates the application of the proposed BSC model and the team-based pay formula.

Practical implications

The model can be used to determine group bonus.


The paper has two objectives: to relate the BSC to the team setting with a participative flavor rather than with imposed targets and weights, and to develop a better way of relating behaviors and outcomes to the team’s and/or the organization’s goals. Integrating the strategies of various units adds a new dimension that differs from rationalizing the superior’s and the subordinate’s goals. The proposed model considers input from all value chain functional managers involved in implementing an organizational strategy. A methodology is provided to operationalize (Hope and Fraser, 2003) beyond the budgeting model principles.



Herath, H.S.B., Bremser, W.G. and Birnberg, J.G. (2019), "Team-based employee remuneration: A balanced scorecard group target and weight selection-based bonus allocation", Accounting Research Journal, Vol. 32 No. 2, pp. 252-272.



Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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