BPL 5100H Lecture Notes - Lecture 23: Motivation, Transactional Leadership, Transformational Leadership
30 Oct 2018
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Document Summary
Target-based: evaluate performance relative to measurable targets: benefits: less subjective, easily measurable, can compensate for performance ( extrinsic motivation ) Issues: may lead to unhealthy competition, short-term measures. Rule-based: evaluate performance relative to standardized processes: benefits: codifies firm"s pool of knowledge, provides clear guidelines, ensures uniform product. Issues: may constrain people, rules may become outmoded, organization may become bureaucratic. Too much emphasis on each might lead to only single-loop or superficial learning and increase rigidity. Recognize that targets and systems exist to provide general directions. Use deviations as inputs for ideas about refinements. Do not use to simply penalize for poor performance. Have incentives to reward collaborative and innovative efforts. Though personal example, inspiring vision, concern for people. Selecting, evaluating, replacing (if necessary) the ceo. Reviewing and approving major strategies and investments. Providing advice and counsel to top management. Monitor the agent (management) for the principals (stockholders) in principal-agent relationship.
