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” Greed Is Good ” – About Renumeration, Motivation And Organization

Business Culture in the 1980s in the United States and internationally focuses on personal achievements on the basis that the person highly motivated to change the organization and the community. Extreme examples in the film, Gordon Gekko in Wall Street that greed is good. 1990s, but the entity to see the trauma and into bankruptcy by the inappropriate use of remuneration as a motivator. However, the success of large companies in wage compensation system have been built. Phones4U recently and Allied Dunbar in the financial services market in the previous example.

The Barings Bank has been to each dealer known on the bonuses in the millions, but long-term business objectives motivated individuals not fair. Moreover, even if is an individual award system entirely on appropriate performance indicators, so that the success of the company and he is rewarded, then it could have problems, characterized by large differences between the salaries of senior people and people of middle management. payment systems to reduce or suppress that the motivation for each of 10 people, probably not the best motivation for the organization.

Wise organizations is therefore trying to reward and motivate all employees, allowing employees to act more corporate interests that have both short and long term and feel they are treated fairly. But it must be for connections between the elements that they are valued and they can take action well impact on the desired results.

A wise organizations acknowledge that:

• This is reasonable for an individual manager, in the interests of one’s action.
• Agencies working for someone does not want to please their superiors and organizations that are nearest to them, or failing that, their peer groups.
• Managers want to achieve, and would be interested in tasks where they know that they can succeed, usually short-term benefits at the expense of long-term.

The implication is clear that organizations, some of the basics before can be modified in the compensation structure, performance and behavior. In other words, leadership and organizational structure, systems must be balanced with the compensation system.

There are five essential prerequisite for the installation of an effective wage structure.

1. Measurements: “If you do not measure you do not get.” There are various schemes for measurement, the Balanced Scorecard, which sets some goals and is used by Tesco, the most famous.

2. Monitoring: If performance measures are not properly monitored or supervised only at the end of the year in review, can give managers signal that they are not too important, or, worse, that failure is acceptable, if not all of them acting jointly.

3. Control tool for the job: The organization must ensure that the individual is no longer dependent on factors outside the control, to achieve the performance measures are defined in (these are the “how” part of the equation).

4. Consistency: Make sure that short-term organizational factors managers less or they are running from their true purpose of influencing it. Organisations must also ensure that the design itself (whether bureaucratic or loose) is in line with what the manager asked.

5. Reward and appropriate strategies: An organizational reach a clear strategy is not an event that will take place in the future, it is a journey. Compensation system to an organization, even if it is a relatively chaotic strategy has added provides that the organization and management disputes in relation to the strategy and the “Balanced Scorecard decided. Only then will the pressure on organizations to improve the strategy, structure and compensation system.

Based on pre condition 5, there is a list of 10 factors that reach the remuneration of an effective and award-structure has the following:

#1. Support the business strategy
#2. Encourage the desired behavior
#3. Presents the relevant Performance
#4. Fair
#5. Be the first substantial
#6. Tax-efficient
#7. Be on time (to be held close to the reward of benefits)
#8. Input of non-financial rewards (recognition can also be important as cash)
#9. Be solid (A bonus is lost, the lack of objective can not be restored, while the salary increase should only be delayed until the goal is reached)
#10. So clear

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