Vision’s Incentive Systems: A Case Study

Every World of Warcraft raiding guild aspires to progress through raid content in a timely pace. Most members of the raiding corps focus on attaining gear and other goals, and so cannot be expected to directly satisfy the guild’s purpose. Thus, the guild must facilitate this indirectly by setting compatible goals, and then motivate raiding members to achieve them.

Human Resources (HR) departments of real-life companies handle these issues regularly, and the officerships of ingame guilds are no more exempt. I will introduce the theories associated with incentive systems, then apply them to analyse the incentive systems of my current guild, Vision of Frostmourne US.

Direct Costing (with Defects)

In the ideal world, every bit of material and labour allocated to a product is used, and no waste is generated. Unfortunately, materials can have defects and precious labour is spent on dealing with it. This means that more input than ideally required is actually used.

In developing standard costs for products, management accountants must take defects into account. To do so, they need to have a good grasp of division and multiplication.

If C is the theoretical amount of material or labour and r is its defect rate, the total amount of material/labour actually used (T) is:

T = ^C/_{1 - r}