Motivation and Control in Organizations

Motivation and Control in Organizations

Motivation and Control in Organizations

Motivation and Control in Organizations

Excerpt

There are few activities in an organization which have greater importance to its performance than those which are included in the goal setting, measurement, and reward cycle. The decisions about how individual, departmental, and division performance objectives are to be established, the methods by which actual performance is measured against these objectives, and the means by which individuals are rewarded for their part in that performance are central to the viability of the firm. However, few things have been more baffling to managers than the results of some of their attempts to develop workable performance measures and controls, thus channeling the energies of their employees toward the firm's objectives. Often when they least expect it, they encounter restriction of output or departmental in-fighting. On one hand they find what seems to be apathy, and indifference; yet on the other hand, they keep discovering remarkably ingenious methods developed by their subordinates for beating the system.

STANDARDS, INCENTIVES, AND SCIENTIFIC MANAGEMENT

American management history has been marked by a number of phases during which certain practices have been widely used; the imprint of these phases is evident in many of the systems of control and reward in use today. One of the earliest and the most widely heralded of these was the period when scientific management made itself felt. Although by no means originated by the advocates of scientific management, the notions of measured output and monetary incentives have come to be largely associated with this movement. The function of the industrial engineer, a product of this period, was to establish standard methods of performance standards. Quotas and budgets for departments and divisions were established by similar but less precise methods and the function of the manager was to act as a thermostat, taking corrective action only when performance moved . . .

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