BU354 Lecture Notes - Lecture 13: Equity Theory, Profit Sharing, King Arthur Flour
Document Summary
Individual performance: focus is on individual productivity however it"s measure. Team performance: free loaders , social loafers who don"t do anything but will share the incentives (e. g. marks) Organizational performance: you don"t see the line of sight. Results are measurable, quantitative or qualitative, and individuals are aware of them. Must have smart goals that individuals are able to achieve. They"re the front line people choosing mission, vision, big strategic decisions = they should be paid adequately. Help them align their interests with shareholders" interests. Small pool of talents that have the skills in the very high level that you want to pay them well so they"ll work for your company. When organizational performance goes down, there"s a tendency to sacrifice long-term gains or short-term results. Individual incentives: if you"re continuing to do what you"re being incentivized to do, but organization isn"t doing well, they"re still obligated to continue to pay you that incentive.
