Re: Incentives LO1121

Dr. Ivan Blanco (BLANCO@BU4090.BARRY.EDU)
Mon, 8 May 1995 18:42:43 -0400 (EDT)

Replying to LO1081 --

It is understandable that some people defend the use of monetary rewards,
that's probably the most common system under which must of us have been
raised. It is also the "easiest" one to handle, and even the easiest one
to record according to the universally accepted procedures. But as we
move into to high performance workforce, the learning organization, where
the emphasis would be on intellectual capital, and we may not even be able
to use the term management (as Michael very accurately points out), how
are we going to handle the differentials in performance? Employees will
still have a need for money (rent, grocery stores, etc. might still be
around), but it will very difficult to tell someone here have this bonus
because you were more intelligent this past month! In this new forms or
organizations, I am predicting that teamwork would be important, but
everything will have to happen whitin a common understanding and
acceptance of the notion of collective action.

We don't even have the mechanisms today to keep record of the
intellectual capacity in our organizations (Fortune Magazine published an
interesting article on this topic, written by Thomas Stewart, on 10-3-94).
Also as jobs become less specific, it will be much more difficult to use
the schemes we have been using for compensation. I had the opportunity to
work for an organization, where their managers cannot manipulate
compensation. The levels of compensation are determined every year, they
are calculated by ranks (or ranges), and everyone within a rank gets the
same (there are bonuses by number of kids, etc.). Although, the managers
did not have any way to influence compensation, there was still the need
to maintain the same sense of direction, and secure the collective action
of all the members. This organization is, and continues to be, Caracas,
Venezuela Fire Department. I am very sure that there millions of us who
have experienced similar situations. How do you do it without having any
influence on the money?


R. IVAN BLANCO, Ph.D. Voice 305 899-3515
Assoc. Prof. & Director Fax 305 892-6412
International Business Programs
Andreas School of Business _________E-Mail Addresses________
Barry University Bitnet: Blanco%bu4090@Barryu
Miami Shores, FL 33161-6695 Internet:
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