City Cat Care (CCC) is an Australian pet insurance company. It has 50 claims examiners in the Sydney division, who are each paid a fixed salary of $60,000 to process claims. Currently 4,000 new claims are processed each day on average, but 10% are processed incorrectly. Incorrectly processed claims have to be reassessed, which is costly and time consuming.

Mandy, the state manager, is not satisfied with the current volume of claims processed. She has instructed Linda, the Sydney division manager, to devise a compensation scheme to motivate the claims examiners to work faster.

However, Linda is concerned that the examiners would make more errors by working faster - part of her own compensation is currently based on keeping divisional costs down!

Suggest an incentive scheme for the claims examiners that will address both Mandy and Linda's concerns. Where possible, use principles of expectancy, agency, and goal setting theories to inform your answer.