Why do many people with Parkinson's disease develop an addiction? We built a virtual casino to find out

We knew people with Parkinson's disease were at heightened risk of developing addictive behaviours like gambling. Our research gives insight into why this is.From shutterstock.comParkinson’s dis...

Philip Mosley, Research Fellow, Systems Neuroscience Laboratory, QIMR Berghofer Medical Research Institute - avatar Philip Mosley, Research Fellow, Systems Neuroscience Laboratory, QIMR Berghofer Medical Research Institute

Up the creek: the $85 million plan to desalinate water for drought relief

The deal to crank up Adelaide’s desalination plant to make more water available to farmers in the drought-stricken Murray-Darling Basin makes no sense.It involves the federal government paying t...

Lin Crase, Professor of Economics and Head of School, University of South Australia - avatar Lin Crase, Professor of Economics and Head of School, University of South Australia

12 simple ways you can reduce bushfire risk to older homes

There are no guarantees in bushfires, but you can improve the odds your house survives a blaze.Photo by Edward Doody, courtesy of Arkin Tilt Architects, Author providedSeventy-five years of Australian...

Douglas Brown, Casual Academic, Western Sydney University - avatar Douglas Brown, Casual Academic, Western Sydney University

Robots with benefits: how sexbots are marketed as companions

Sexbot Emma, from AI Tech, is advertised as a "real AI you can talk to". She offers "warm hugs" and will "feel your feelings".YouTube/ScreenshotWhen thinking of sexbots, companionship might not be the...

Fiona Andreallo, Lecturer in digital culture, University of Sydney - avatar Fiona Andreallo, Lecturer in digital culture, University of Sydney

Holy bin chickens: ancient Egyptians tamed wild ibis for sacrifice

A scene from the Books of the Dead (based at the Egyptian Museum) shows the ibis-headed god Thoth recording the result of "the final judgement".Wasef et al./PLOS ONE, CC BY-SAThese days, not many Auss...

Sally Wasef, Postdoctoral research fellow, Griffith University - avatar Sally Wasef, Postdoctoral research fellow, Griffith University

Sonic havens: how we use music to make ourselves feel at home

Music played through headphones can immerse the listener in a more intimate experience.Stokkete/ShutterstockThe concept of “home” refers to more than bricks and mortar. Just as cities are...

Michael James Walsh, Assistant Professor Social Science, University of Canberra - avatar Michael James Walsh, Assistant Professor Social Science, University of Canberra

Nation-building to 'national shame': the ABC's complex debate over its role as sports broadcaster

ABC once viewed sports coverage as integral to its mission of nation-building. But in recent years, it has grown far more ambivalent about sports.Dean Lewins/AAPThe ABC has announced it will not provi...

Michael Ward, PhD candidate, University of Sydney - avatar Michael Ward, PhD candidate, University of Sydney

How does poor air quality from bushfire smoke affect our health?

New South Wales and Queensland are in the grip of a devastating bushfire emergency, which has tragically resulted in the loss of homes and lives. But the smoke produced can affect many more people not...

Brian Oliver, Research Leader in Respiratory cellular and molecular biology at the Woolcock Institute of Medical Research and Senior Lecturer, School of Medical & Molecular Biosciences, University of Technology Sydney - avatar Brian Oliver, Research Leader in Respiratory cellular and molecular biology at the Woolcock Institute of Medical Research and Senior Lecturer, School of Medical & Molecular Biosciences, University of Technology Sydney

Bushfires can make kids scared and anxious: here are 5 steps to help them cope

More than 600 schools have been closed, and some damaged, in recent days as bushfires rage across Queensland and New South Wales. Some students have been urgently evacuated while in school. People hav...

Toni Noble, Adjunct Professor, Institute for Positive Psychology & Education, Australian Catholic University - avatar Toni Noble, Adjunct Professor, Institute for Positive Psychology & Education, Australian Catholic University

'Like volcanoes on the ranges': how Australian bushfire writing has changed with the climate

Bushfire writing has long been a part of Australian literature. Tales of heroic rescues and bush Christmases describe a time when the fire season was confined only to summer months and Australia&rsqu...

Grace Moore, Senior lecturer in English, the University of Otago, New Zealand, University of Otago - avatar Grace Moore, Senior lecturer in English, the University of Otago, New Zealand, University of Otago

Farmers, murder and the media: getting to the bottom of the city-country divide

Left, farmer Ian Turnbull being who was convicted of murdering compliance officer Glen Turner. Right, Mr Turner's partner Alison McKenzie outside court. Tensions over land clearing can have tragic con...

Tanya M Howard, Senior research fellow, University of New England - avatar Tanya M Howard, Senior research fellow, University of New England

If Australian police officers are allowed to shoot to kill, they should be better trained

There is no clear evidence guns make police safer, but officers feel safer with firearms at their disposal. ShutterstockAustralians woke to the news last weekend that a 19-year-old Warlpiri man had be...

Rick Sarre, Professor of Law and Criminal Justice, University of South Australia - avatar Rick Sarre, Professor of Law and Criminal Justice, University of South Australia

Why municipal waste-to-energy incineration is not the answer to NZ's plastic waste crisis

Since the Chinese plastic recycling market closed, 58% of New Zealand’s plastic waste goes to countries in South-East Asia.from www.shutterstock.com, CC BY-NDNew Zealand is ranked the third-most...

Trisia Farrelly, Senior Lecturer, Massey University - avatar Trisia Farrelly, Senior Lecturer, Massey University

The robbery of the century: the cum-ex trading scandal and why it matters

Cum-ex trading, like a magic trick, involves shares 'disappearing' then 'reappearing' with a new owner to enable two parties to simultaneously claim ownership of the one stock. www.shutterstock.comIt ...

Alex Simpson, Senior Lecturer in Criminology, Macquarie University - avatar Alex Simpson, Senior Lecturer in Criminology, Macquarie University

Australian Prudential Regulation Authority Casual observers of the financial services royal commission might be forgiven for thinking the days of sales-based commissions being paid to bank and insurance staff were over. Apparently not. The Australian Prudential Regulation Authority’s discussion paper on Strengthening Prudential Requirements for Remuneration, released last week, condones the ongoing use of “balanced scorecards” for determining bonuses. While possibly not as bad as the old bonus systems based only on sales or profits, a “balanced scorecard” – which also includes less tangible outcomes such as “customer satisfaction” – is not a good solution. In a study presented at the 2019 Financial Markets & Corporate Governance Conference, I and my colleagues Le Zhang from Macquarie University and Dominik Steffan from the Technical University of Munich find that balanced scorecards produce significantly worse outcomes than no bonuses at all, and create environments in which bad behaviour is more easily tolerated. Take 318 bankers… We asked 318 finance professionals to take part in 20-minute trading sessions in which they could transact up to 60 times, making decisions that in our simplified balanced scorecard approach were rewarded on the basis of both profit and following risk rules. In the other scenario, the reward was a flat payment, unrelated to performance. We found that the proportion of people who chose to consistently apply the rules dropped 16% under the balanced scorecard approach. For those who sometimes violated the rules, compliance dropped 24% when paid under the balanced scorecard approach. One reason might be that financial criteria such as sales and profits are easy to measure, and are audited, whereas other criteria such as following rules and providing good service are difficult to measure, at least in the short-term. ‘Balanced’ is unbalanced Customer outcomes are often measured with customer surveys such as the infamous net promoter score that asks whether they would keep using the service or recommend it to others. It works well for services such as restaurant meals, where customers can quickly form valid judgements. But when it comes to financial services, the quality of what they have been offered might not become apparent for years. When customers are disengaged or have low levels of financial literacy, or when products are complex, the quality may never be apparent! Complaints data bring other problems. One is that often customers don’t bother to complain. Another is that firms sometimes “pay off” disgruntled customers, leaving them satisfied but the underlying problems unresolved. The customers who never complain are left to suffer from poor practices and the complaints data give no meaningful information. Another popular solution is to rely on manager ratings in the performance assessments that determine bonuses. Manager ratings are often not credible. Academic researchers find that they are as much influenced by the managers own incentives and preferences as they are by performance. Managers need not tell the truth Managers keen to retain top performers in sales and profits can give them high ratings despite poor behaviour. Even more worrying, subjective performance ratings can be prone to favouritism, collusion and extortion. Nobel prizewinner Bengt Holmstrom predicted years ago that the balanced scorecard wouldn’t work, in his landmark paper on multitask principal-agent analysis. He found that when some criteria are easy to measure and others aren’t, employees will put most of their energy into the criteria that are easy to measure, in this case sales and profits. Balanced scorecards are inherently unbalanced. Read more: There's no evidence behind the strategies banks are using to police behaviour and pay What’s the solution? One might be deferrals – bonuses based on financial performance that are held back for multiple years. Over time, and with active regulation, it would become obvious whether profits have been generated by fair means or foul. If foul, the bankers would not be eligible to receive what they thought they had earned. A better idea might be to revert to a system of fixed salaries with no bonuses. It works for most Australians, and it used to work for bankers. Read more: Confiscate their super. If it works for sports stars, it could work for bankers

Authors: The Conversation

Read more http://theconversation.com/how-not-to-police-financial-services-balanced-scorecards-dont-work-for-bankers-120899