Defining

performanc
Rewards: extrinsic & e Desired performance
intrinsic dimensions dimensions are aligned with
Motivational impact measurement
Varied amongst people =>
tailored system of rewards

Results
Providing
rewards control Measuring
performance

Provide clear goals

Assess performance Objective measures and
relative to target subjective judgment
Varied between levels of
Setting organization
performanc
e targets
 Case Study

Armco, Inc.:
Midwestern Steel
Division
Main products Kansas City Works
produced

Grinding Media Carbon Wire Rod

Best in the US market. Selling volumes are high,
but not cost competitive.
Old System
New System
Problems Occurred in the New
System
Recommendations