Intervention in organizations
Assignment 4
Text assignment 4
1/2.
Wruck
In short, the chapter of Wruck is about organizational change and the way rewards (extrinsic
motivation) can play a role in that. Wruck states that productive/effective change is a change
, which creates value for an organization, and therefore the society. However, to change you
often need to alter the behavior within the whole organization. Something which can be done
by means of reward systems. So, these systems should also be taken into account while
changing. According to Wruck, effective compensation systems do:
1. Improve motivation and productivity of employees
2. Promote productive turnover in personnel
3. Mobilize valuable specific knowledge by allowing effective decentralization
4. Help overcome organizational inertia and opposition to change.
Besides this, it is also important to state that rewards (and punishments) are not always
monetary. They can be everything that organizational members value. Nevertheless, monetary
rewards are a good starting point, because they certainly do affect the behavior of people.
Wruck keeps emphasizing this because people are the most important element during change
because people implement solutions to problems. So, compensation systems, because of their
influence on behavior, play a crucial role in the change process.
Organizations cannot choose if they implement a reward/punishment system. They only can
choose the way the system is designed. According to Wruck, these systems have to be able to
provide employees with the abovementioned four points.
1. Improve motivation and productivity of employees
Researches agree that rewards can improve motivation and productivity. But the systems
should not work ‘’too well’’ because fraud can also occur. Besides that, managers should also
try to focus on intrinsic motivation, instead of a tunnel vision regarding extrinsic motivation.
2. Promote productive turnover in personnel
At this point, compensation systems can play a crucial role, because these systems serve as a
selection device. In other words, it can help an organization to attract the personnel they are
looking for.
So, if one changes these systems effectively, it will most likely affect the (current) personnel
within the organization. This also may be a way to attract and retain people who are willing to
change and get rid of the personnel that is opposing to change.
3. Mobilize valuable knowledge by allowing effective decentralization
Assignment 4
Text assignment 4
1/2.
Wruck
In short, the chapter of Wruck is about organizational change and the way rewards (extrinsic
motivation) can play a role in that. Wruck states that productive/effective change is a change
, which creates value for an organization, and therefore the society. However, to change you
often need to alter the behavior within the whole organization. Something which can be done
by means of reward systems. So, these systems should also be taken into account while
changing. According to Wruck, effective compensation systems do:
1. Improve motivation and productivity of employees
2. Promote productive turnover in personnel
3. Mobilize valuable specific knowledge by allowing effective decentralization
4. Help overcome organizational inertia and opposition to change.
Besides this, it is also important to state that rewards (and punishments) are not always
monetary. They can be everything that organizational members value. Nevertheless, monetary
rewards are a good starting point, because they certainly do affect the behavior of people.
Wruck keeps emphasizing this because people are the most important element during change
because people implement solutions to problems. So, compensation systems, because of their
influence on behavior, play a crucial role in the change process.
Organizations cannot choose if they implement a reward/punishment system. They only can
choose the way the system is designed. According to Wruck, these systems have to be able to
provide employees with the abovementioned four points.
1. Improve motivation and productivity of employees
Researches agree that rewards can improve motivation and productivity. But the systems
should not work ‘’too well’’ because fraud can also occur. Besides that, managers should also
try to focus on intrinsic motivation, instead of a tunnel vision regarding extrinsic motivation.
2. Promote productive turnover in personnel
At this point, compensation systems can play a crucial role, because these systems serve as a
selection device. In other words, it can help an organization to attract the personnel they are
looking for.
So, if one changes these systems effectively, it will most likely affect the (current) personnel
within the organization. This also may be a way to attract and retain people who are willing to
change and get rid of the personnel that is opposing to change.
3. Mobilize valuable knowledge by allowing effective decentralization
