，文章题目是:Analysis of Incentive and Control System
Abstract
This paper examines the different types of incentive and control systems used by organizations. Different models of incentive and control are discussed including; Financial rewards, non-financial rewards, behavior-based controls and outcome-based controls. An analysis is done to compare and contrast the different models, including the advantages and disadvantages of each system. The paper will conclude with a brief overview of the best practices for using an incentive and control system for success.
1. Introduction
To successfully run an organization, it is necessary to have a system of incentives and controls in place to ensure that employees or members of the organization are working towards achieving the desired goals. Incentives and controls are complementary structures employed by organizations to motivate their employees and groups to perform at the highest levels. The aim of incentives and controls is to influence behavior and performance in the desired direction. Each system serves an essential purpose: the incentive system is used to motivate and reward the desired level of performance while the control system is used to monitor and evaluate performance to determine appropriate rewards and punishments.
2. Types of Incentive and Control Systems
The two primary methods used to motivate and control organizational performance are financial rewards and nonfinancial rewards. Financial rewards are monetary rewards such as wages and bonuses that are designed to motivate employees by providing them with financial incentives for efficient performance. Non-financial rewards include recognition, praise and job enrichment, which are designed to motivate employees by providing them with tangible rewards such as a symbolic symbol of recognition or a job promotion.
The other two types of control systems are behavioral-based controls and outcome-based controls. Behavioral-based controls are designed to measure and monitor employee behavior. They can be used to assess employee performance by examining their behavior and setting objectives that give feedback on progress. Outcome-based controls measure progress in terms of output. The focus here is on results rather than activities. This type of control system is designed to monitor the effectiveness of different strategies.
3. Advantages and Disadvantages
Both financial rewards and non-financial rewards have inherent advantages and disadvantages. The primary advantage of financial rewards is that they can motivate employees to work hard and be productive. They allow employees to make more money and promote a sense of ownership. The disadvantage of financial rewards is that they may lead to an immediate “prediction effect” where employees are only motivated by the money they will receive and not necessarily by the tasks that need to be completed.
Non-financial rewards, on the other hand, provide recognition for work and accomplishment. This recognition can be highly effective in motivating employees, as it allows them to feel that their efforts are appreciated. The disadvantage of non-financial rewards is that they generally take a longer time to become effective, as employees need to receive the reward and experience it before they feel the incentive to work hard.
Behavior-based controls and outcome-based controls both have advantages and disadvantages. The primary advantage of behavior-based controls is that they can measure and monitor behaviors that are directly related to the desired outcomes. This type of control system can provide an in-depth analysis of behaviors that can lead to improved performance. The disadvantage, however, is that behavior-based controls can lead to potential micromanagement as it may be difficult to determine which behaviors are actually contributing to the organization’s desired outcomes.
Outcome-based controls can provide a more systematic assessment of organizational performance as they measure progress in terms of output. The disadvantage of this type of control system is that it can lead to a “black box” approach where it is difficult to determine which interventions are making a difference.
4. Best Practices
To maximize the success of an incentive and control system, it is important to consider the advantages and disadvantages of each system and move towards a more balanced approach. Organizations should use financial rewards as a way to motivate and reward employees for their productivity, but should also recognize that non-financial rewards can be used as a long-term tool for motivation and goal setting. Also, behaviors can be monitored through behavior-based controls and progress can be measured through outcome-based controls. Finally, it is important to assess which system provides the greatest value to the organization and to evaluate the effectiveness of the system on a regular basis.
5. Conclusion
Incentives and controls are integral parts of a successful organizational system. Financial rewards, non-financial rewards, behavior-based controls and outcome-based controls all serve distinct, yet complementary purposes. Each system has its own advantages and disadvantages, so it is important to consider the best practices and strive for a more balanced approach to implementing an incentive and control system. By taking the time to analyze and evaluate the different models and their respective benefits, organizations can ensure their incentive and control system will be successful.
