Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- An outline of the step-by-step approach
- Step 1 Getting started
- Step 2 Strategy
- Step 3 Structure
- Step 4 Process and people
- Step 5 Coordination and Control
- 9 Coordination, control, and information systems
- 10 Incentives
- Applying the step-by-step approach in a dynamic world
- References
- Index
10 - Incentives
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- An outline of the step-by-step approach
- Step 1 Getting started
- Step 2 Strategy
- Step 3 Structure
- Step 4 Process and people
- Step 5 Coordination and Control
- 9 Coordination, control, and information systems
- 10 Incentives
- Applying the step-by-step approach in a dynamic world
- References
- Index
Summary
Introduction
In the previous chapters, you began with goals and analyzed your chosen organization (unit of analysis) with respect to strategy, environment, configuration, task design, people, leadership, climate, coordination and control, and information systems. Now we add another vital component to the design of the firm: what incentives do you give to individuals and groups so that they make decisions and take actions that fit well with the other design characteristics and help to meet organizational goals? Incentives support the firm's infrastructure of coordination, control, and information systems, and thus help to assure that work tasks are executed and organizational goals can be achieved. Design of incentives goes hand-in-hand with all the other components of organizational design.
What do we mean by incentives? Incentives are means or instruments designed to encourage certain actions or behavior on the part of employees, or groups of employees (e.g., subunits of employees). Incentives are not just the objective set of rewards that the firm offers but also the way people interpret the rewards and act upon the rewards that the firm provides. Monetary rewards in the form of salaries, wages and benefits are incentives, but they are not the only ones. People respond to praise, acceptance, belongingness, and recognition of self worth. A pat on the back as well as a paycheck can be an incentive. A promotion or title can be an incentive.
- Type
- Chapter
- Information
- Organizational DesignA Step-by-Step Approach, pp. 182 - 200Publisher: Cambridge University PressPrint publication year: 2006