Changing incentives in a multitask environment: evidence from a top-tier business school

This study focuses on changes in incentives at the William E. Simon Graduat e School of Business Administration in the early 1990s to redirect effort f rom academic research to classroom teaching. We find a substantial and almo st immediate jump in teaching ratings following the changes in incentives. Longer-run learning and turnover effects are present. Evidence also suggest s that research output fell. This case illustrates the power of organizatio nal incentives to redirect effort in a multitask environment, even in the p resence of apparent human-capital constraints. (C) 2001 Elsevier Science B. V. All rights reserved.