Database Reference
In-Depth Information
The Harvard six steps for increasing creativity are but a starting point
for creating the innovative organization. All of this, however, still relies on
the CEO being an advocate for innovation management.
Rewarding Employees for Innovative Ideas
There are two types of awards. Intrinsic rewards appeal to a person's desire
for self-actualization, curiosity, joy, and interest in the work. Extrinsic
rewards appeals to a person's desire for attainment: e.g., money, stock
options, days offs, tickets to ballgames, etc. Intrinsic rewards are intan-
gible, while extrinsic rewards are quite tangible. As one of my employees
says, “Show me the money.”
Many of the motivation techniques discussed in this chapter could be
considered intrinsic rewards. Extrinsic reward systems are more difficult
to implement, as there are usually budget considerations to deal with. In
many companies, the methodology used to grant yearly raises can even
be considered countermotivational. When I worked for the New York
Stock Exchange, employees were rated on a scale of 1 to 5. The largest
rewards (i.e., raises) were granted to the 5s. However, we were told to rate
our employees using a bell-shaped curve. The result is that some 5s were
cheated out of their fair share of the reward system.
his topic is so important that more than a few topics have been writ-
ten on the subject. Wilson (2002) talks about the use of spot bonuses,
team celebrations, innovative employee benefits, and flex compensation.
Pearce and Robinson (2005) discuss the subject of executive compensa-
tion in their textbook on strategic management, now in its ninth edition.
Ideas that work for the senior managers should also work for the employee
who greatly contributes to the profitability and/or competitive advantage
of the firm:
1. Stock option grants
2. Restricted stock plan
3. Bonus income deferred, sometimes referred to as golden handcuffs
4. Cash based on accounting performance measures
Creating a workforce infused with innovation and creativity requires
understanding how to work with people. You'd be surprised (or maybe
not) at how differently bosses look at things than do their staff, as shown
in Table 1.2. The object, clearly, is to narrow the gap.
Search WWH ::
Custom Search