1. Nick Bloom, 149, 2015 The Modern Firm in Theory & Practice Nick Bloom (Stanford Economics and GSB) Lecture 12: Incentives: Safelite glass case 1

2. Nick Bloom, 149, 2015 These guys replace broken windshields

3. Nick Bloom, 149, 2015 Overview the case

4. Nick Bloom, 149, 2015 Overview the case Moved in early 1990s from in-store to mobile Moved to process claims for insurance companies 1993-1997 introduced PPP, could hit old levels with slightly higher performance. 12 weeks initial guarantee lowered to 70% of old rate

5. Nick Bloom, 149, 2015 “Some of the technicians play too much time playing pinochle” said one manager

6. Nick Bloom, 149, 2015 Why was the Safelite productivity so low?

7. Nick Bloom, 149, 2015 Did the new performance pay plan address the issues? Did it add new problems?

8. Nick Bloom, 149, 2015 What are the general pros and cons of going from flat rate piece rate?

9. Nick Bloom, 149, 2015 Are Safelite installers good candidates for piece-rate pay?

10. Nick Bloom, 149, 2015 Should there be a guaranteed wage?