What is appealing about incentive systems to organizational leaders during a change implementation process? Can you share examples of when it would be useful to create new incentives early on in a transformation process to support new behaviors? Also, comment briefly as to where the necessary data would come from.
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Incentive systems are appealing as the establish a system to recognize the changed behavior and actions when implementing the new change. Financial incentives are the most utilized and obvious tools used to change employee behavior (Spector, 2013). These incentives give immediate motivation to employees to recognize the need and implement the desired change. There are also other examples of incentives, such as intrinsic rewards, the positive outcomes that are naturally associated with the changed behavior (Spector, 2013).
Some examples of incentives include bonus pay tied to achieving established goals. If a company has a goal to reach a certain number of new clients, there could be bonuses tied to various levels of new customers reached. Publicly recognizing those employees meeting the goals of the change, is another way to incentivize the changed behaviors.
Objective data collection needs to occur in order to fairly recognize the changed behavior. This could limit rivalry when some employees feel that the recognition is unfair or inaccurate.
Spector, B. (2013). Implementing organizational change: Theory into practice (3rd ed.). Upper Saddle River, NJ: Prentice Hall.
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