The National Health Service pays hospitals a flat rate per case for inpatient hospital care so that hospitals are rewarded for efficiency or are stimulated to become more efficient.
Staff are now rewarded for efficiency in using leather (the costliest input) and run an internal market to sell offcuts.
Economist Dallas Burtraw, a colleague of Aldy's at Resources for the Future in Washington, D.C., calls this aspect "refreshing … under this system a coal plant is rewarded for efficiency".
Today's neoliberal university is increasingly facing market pressures like loss of state funding, privatization, rising tuition, and student debt, while promoting a business model that emphasizes the managerial control of faculty through constant "assessment," emphasis on "accountability," and rewards for "efficiency".
Competition in the bidding process, as well as incentive contracts that reward providers for efficiency, can keep costs down.
To encourage that process, President Obama recently proposed a simplified matching rate for Medicaid, which would reward states for efficiencies and automatically increase federal payments if a recession drives up enrollments and state costs.
Kantor's article mentioned that retail managers are rewarded for the efficiency of their staffing; it's also worth noting that these managers are often constrained in their staffing decisions by rigid parameters set by corporate bosses.
We would also like our labour offices to finally start being rewarded for the efficiency of stimulating labour force participation of the unemployed, that is for placing them for real jobs, and not for the numbers of registered unemployed or for the organisation of trainings that fail to bring about the expected result which consists in finding work by job seekers.
Other efforts to improve morale included rewards for fuel efficiency and the improvement of safety, including stricter investigation of accidents.
A spokesman said this was a widespread practice that provided a small "efficiency" reward for the difficult task of enforcing the rules on weight allowances and having to handle irate customers.
