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Management Compensation

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management compensation
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   Organizational Incentives  Research Findings tends to support the following: 1. Individuals tend to be more strongly motivated by the potential of earning rewards than by the fear of punishment, which suggests that MCS should be reward oriented. 2. Personal reward is relative or situational. Monetary compensation is an important means of satisfying needs. Beyond a certain level, however, the amount of compensation is not necessarily as important as nonmonetary rewards.   Organizational Incentives 3. If senior management signals by its actions that it regards the MCS as important, operating managers will also regard it as important. If Sr. Mgmt., pays little attention to the system, operating managers will follow suit. 4. Individuals are highly motivated when they receive reports, or feedback, about their performance. Without such feedback, people are unlikely to feel a sense of achievement or self-realization or to figure out how they can change their behavior to meet their objectives.   Organizational Incentives 5. Incentives become less effective as the period between an action and feedback on it increases. At lower levels in the organization, the optimal frequency may be only hours; for senior management, it may be months. 6. Motivation is weakest when the person believes an incentive is either unattainable or too easily attainable. Motivation is strong when it takes some effort to attain the objective and when the individual regards this attainment as important in relation to his or her needs. 7. The incentive that a budget or other statement of objective provides is strongest when managers work with their superiors to arrive at the budgeted amounts. Objectives, goals, or standards are likely to provide strong incentives only if the manager perceives them as fair and is committed to attaining them. The commitment is strongest  when it is a matter of public record –  that is, when the manager has explicitly agreed that the budgeted amounts are attainable.
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