Management and Organizational Studies 4471A/B Chapter Notes - Chapter 2: Lincoln Electric, Organizational Architecture, Controllability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4471A/B
• Professor: Bill Dawson

Document Summary

Pay-for-performance = a result control rewarding employees for generating good results. Pay-for-performance = in banks during the financial crisis = bonus cultures of greed and short-termism. Need to link compensation more with long-term value creation. Pay doctors and nurses more based on their quality of care and how quickly they see patients, rather then per consultation. Other forms of reward = job security, promotion, autonomy, plum assignments and recognition. (rewards chapter 9) Result controls = meritocracies = rewards giving to the most talented and hardest working rather then those with greater tenure and connections. Rewards linked to results indicate what result areas are important and help motivate employees to achieve those results for the organization. Rcs influence by causing employees to be concerned about the consequences of their actions and decisions. Employees are empowered to make the best decision they believe to produce the desired results, instead of being told exactly what to do.