Reward system to strategically relevant performance results

Question

Define the reward system to strategically relevant performance results.

Answer 1

Involving the reward system to strategically relevant performance results:

1. The most reliable approach to keep people alert on strategy execution and the accomplishment of performance goals is to kindly reward and recognize individuals and teams who beat or meet performance goals and deny rewards and recognition to those who do not.

Core Concept:

A correctly designed reward system aligns the well being of organization members with their contributions to capable strategy execution and the achievement of performance goals.

2. Strategy driven performance goals require to be established for every organization unit, every team or work group, every manager, and perhaps, every employee.

3. Nucor and Bank One: Two companies which tie incentives directly to the strategy implementation, gives two glowing examples of how organizations have designed incentives related directly to results reflecting fine strategy execution.