Incentive, compensation, and performance measurement systems are a common way in which organizations try to enhance their overall performance. Drawing on your readings and our class discussions:
Describe at least five key challenges to designing, changing, and implementing incentive, compensation, and performance measurement systems.
UMass needs to raise more than $100 million funds continued expansion and upgrade of the campus, including the construction of a new science center. The Development Office plans to hire 15 members of the Class of 2015 to help raise this money. These 15 new staff members will be assigned to UMass’s various Colleges (College of Management, Arts & Sciences etc.) and report jointly to a dean and the head of the university’s development office. Describe the key elements of an incentive, compensation, and performance measurement system for these new development staff members and advise the director of development how he can avoid the perils of “Rewarding A While Hoping for B.” [Note: UMass does need to raise money, but the example here is fictitious.]