BPL 5100 Chapter Notes - Chapter 9: Fiduciary, Organizational Learning, Organizational Culture
Document Summary
Lo9-1 the value of effective strategic control systems in strategy implementation. Lo9-2 the key difference between traditional and contemporary control systems. Lo9-3 the imperative for contemporary control systems in today"s complex and rapidly changing competitive and general environments. Lo9-4 the benefits of having the proper balance among the three levers of behavioral control: culture, rewards and incentives, and boundaries. The use of rewards and culture to align individual and organizational goals becomes increasingly important: second, the long term contracts with employees are eroded. If individual workers don"t see how their actions relate to how they are compensated, incentives can be demotivating: rewarding based on firm"s stock price. If incentives are too closely tied to their individual work, they may lead to dysfunctional outcomes: ex: if sales representative is rewarded for sales volume, she will be incentivized to sell at all costs. Nonfinancial motivators such as managerial praise, informational recognition rewards (personal, written, or public praise).
