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Motivation and Organization


The corporate culture of the 1980s in the United States and around the world has placed a strong emphasis on personal appreciation because highly motivated individuals can change organizations and society. Gordon Gekko of Wall Street is an extreme example of the film. He declares that greed is good. However, in the 1990s, companies were traumatized and went bankrupt because of the misuse of compensation as a motivator. But the success of a big company was built on the basis of ...

The corporate culture of the 1980s in the United States and around the world has placed a strong emphasis on personal appreciation, on the grounds that highly motivated individuals can change organizations and society. Gordon Gekko of Wall Street is an extreme example of the film. He declares that greed is good. However, in the 1990s, companies were traumatized and went bankrupt because of the misuse of compensation as a motivator. But the success of big business is based on a rewards-based pay system. Phones4U recently and Allied Dunbar in the financial services market are the previous examples.

The famous Barings Bank offers an additional bonus of millions of individual traders, but in the long run these motivated individuals do not meet the company's goals. Moreover, even when the individual reward system is based on perfectly appropriate performance indicators that contribute to the organization's success and is valued, significant differences between the salaries of parents and those of middle managers can persist. . Payment systems that suppress or motivate 10 people for each motivated person may not be the best for the organization.

As a result, savvy organizations try to reward and motivate all employees to act decisively to defend the company's short- and long-term interests and to feel equitably treated. But there must be a proper relationship between the elements for which they are valued and the actions they can take to influence the desired results.

Wise organizations agree that:
• It makes sense for each manager to act in his own interest.
• Managers work for people who are not organizations and who want
please the boss closest to them, or fail, their peer group.
• Managers want to succeed and will be interested in tasks for which they know they can succeed, usually supporting the short term over the long term.

It clearly follows that an organization must lay the groundwork before relying on the compensation structure to change performance and behavior. In other words, the management system and the organization must be balanced with the remuneration system.

There are 5 main prerequisites for setting up an effective pricing structure.
1. For Measurement: There are different measurement systems that are balanced scorecards, which set many goals and are used by Tesco, perhaps the most famous.

2. Monitoring: If the performance measure is not well monitored or monitored only at the end of the year, this may indicate to the manager that it is not too important or, worse, that failure can be accepted if all managers fail together.

3. Control of working tools: organizations must ensure that the person is not overly dependent on factors beyond his control to achieve the specified performance measure (this is the "how" part of the equation).

4. Coherence: Make sure that short-term organizational factors do not really affect managers and do not detract from their true objectives. The organization must also ensure that the design is itself (bureaucratic or loose) in accordance with the request of the manager.

5. Prices and strategies are aligned: organizations that achieve a clear strategy are not events that will happen in the future; it's a trip. The compensation system can be integrated into the organization even if its strategy is relatively chaotic, provided that organizational and management differences are resolved by reference to the strategy and the balanced scorecard. Only then will the organization be pressured to improve its strategy, structure and compensation system.

Based on the previous 5 conditions, there is a checklist of 10 factors that must be achieved by the reward and rewards structure:

1. Support business strategies

2. Encourage the desired behavior

3. Rewarding the relevant performances

4. be fair

5. be substantial

6. Become effective in taxation

7. In a timely manner (prices must be made almost to the height)

8. Combination of non-financial rewards (recognition can be as important as money)

9. Be firm (lost bonuses because lost targets can not be recovered and salary increases can only be deferred until the target is reached)

10. Be crystal clear

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