5. Pay-for-performance
- A type of control that involved rewarding
employees for generating good results.
- Ex. Performance-Based Bonus (PBB)
6. 2.1PrevalenceofResultsControl
Results controls- are commonly used for controlling the
behaviors of employees at many organizational levels.
Professional –someone who is responsible for achieving a result
rather than performing a task.
Decentralization and the design of the incentive system
are two critical organizational design (organizational
architecture) choices in a results control context.
7. 2.1PrevalenceofResultsControl
Decentralization is a type of control system, where
corporate management could review and judge the
effectiveness of the various organizational entities while
leaving the actual execution of operations
the design of the incentive system is a
method of rewarding employees on the basis
of their outputs.
8. 2.2Results Control & the control problems
Lack of directions
Motivitional problems
Personal limitations
9. 1. Defining performance
dimensions
“What you measure is
what you get”
2. Measuring performance
- A critical element of a results-
control system.
3. Setting performance targets 4. Providing rewards
Rewards/incentives is the final element of
the results control system
ElementsofResultsControl
10. RESULTS
CONTROL
Ability to influence desired results
(Controllability Principle)
Knowledge of
desired results
Ability to measure controllable results
effectively
Precision
Objectivity
Timeliness
Understandability
2.3 CONDITIONS DETERMINING THE EFFECTIVENESS OF RESULTS
CONTROL
Results desirability
- not influenced by personal
feelings or interpretations
- unbiased.
- the amount of
randomness in the
measure.
14. An extrinsic reward is an external reinforcement, which takes the form of a
tangible item such as a trophy or money, or something intangible such as
praise and public recognition.
An intrinsic reward gives an individual internal (personal) satisfaction
such as that derived from a job well done.
● Punishments
- is the opposite of rewards
-things employees dislike demotions,
supervisor disapproval, the threat of
dismissal, etc.
