The need for employee performance to be measured and offer motivational packages
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Managers attempting to motivate superior performance among subordinates and within their organizations and units offer, very often, incentive compensation to their subordinates linked to the level of performance achieved.
Intrinsic and extrinsic contracts among the organization and its stakeholders owners, customers, suppliers, employees and community are the main concern of this framework.
Moreover, the different nature of these relationships makes the organizational performance a construct with more than one dimension. Planning work to keep measured performance high, spending time checking control system calculations to be sure no mistakes were made, and carefully documenting external events which effect the performance measures are all examples of tactical responses that have been identified in previous research.
Doctoral Thesis - University of Waterloo, Canada.
Effect of motivation on employee performance and organizational productivity
Accounting information and the evaluation of subordinate performance : a situational approach. Journal of Accounting Research, v. Sloan Management Review, p. The authors also point out Atkinson, Waterhouse and Wells, as a primary measure for the stakeholder group called community, the organizations public image. Journal of Cost Management, p. Contradictory preferences can exist at the same time because one domain of activities may be independent of another. In order to highlight the above distinctions, we might say that performance drivers are defined in conformity with specific settled strategies whose successful implementation is monitored and communicated through the achievement of performance indicators. Hypothesizing that the organization's overall performance depends in a certain way on how individuals perform their specific tasks, economic and behavioral theories may show some links and possibly some interdependence when used to study performance measurement. However, modern motivation programs and tools allow for fairly easy measurement of the effect that any given motivation program has on employee performance. It is also assumed that dysfunctional behavior is often undertaken by subordinates to assist them in shirking or in receiving favorable performance evaluations. Contingency formulations of organization structure : implications for management accounting. Considering these constraints, measurement issues have helped refocus the research in performance measurement toward the use of nonfinancial performance indicators. Management Science, v. The new manufacturing environment, global competition and information revolution are some of the issues that have been used to raise the relevance of the subject and the argument that organizations need changing in the way they assess their overall performance. According to Watson , the reference group for the development of interdependency measures are individuals within an organization who, in carrying out their tasks, rely on the individual being assessed e.
E-mail: eduardo. These generic outcome measures tend to be lag indicators, such as profitability, market share, customer satisfaction, customer retention, and employee skills. What are the dimensions of the organizational performance?
London : Academic Press, An expected positive effect on the organizational overall performance may find support in the argument developed in the first section of this paper. Table 2 summarizes the four studies analyzed in this section to support the argument about the assessment of organizational overall performance in three main dimensions.
based on 111 review