Thursday, February 12, 2009

Controling What Matters

Employees behave in ways that mirror what management monitors, so it is critical to align organizational controls and measurements to what you want employees to focus on. I worked for a company that tracked (and gave bonuses for) sales performance. While corporate “focused” on payroll, it was not originally part of the bonus structure so payroll was ignored. When we started receiving labor reports and a bonus linked to controlled payroll, our behaviors changed quickly.

1 comment:

  1. I agree, the organization must implement a pay/ bonus structure that aligns with the corporate culture. Different employees are motivated by different incentives. While it is widely thought that employees are mainly motivated by money, this is not always true. The company must be able to recognize what motivates the culture and then align the pay structure to that.

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