Management and Organizational Studies 1021A/B Lecture Notes - Lecture 6: Fixed Cost, Performance Appraisal, Competitive Advantage

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: James O' Brien

Document Summary

Pfeffer & sutton (2006) argue that incentives have a number of different organizational effects: motivation effects; increasing effort, selection effects; attracting certain kinds of people to an organization (and elect to say) E. g. two big-box retailers had two compensation systems commission and base salary sales force have different salesmen drawn to stability/opportunity: managers use incentives for these effects! Not in book, important: perverse or unintended incentives can have reverse effects. Helping employees see the link between their effects, performance, and rewards (line of sight: e. g. effort put into studying results/grades; upper-year students who are convinced there is no link between these two, they stop studying. Link to motivational theory these linkages are required for rewards to have desired effects. Goal is distinguishing top from average performers: acs example and sharing the wealth . Issue of organizational levels (makes no sense at individual level but at organizational) Because demand exceeds supply in health care system, so waiting is inevitable!