Introduction

In the previous chapters, you began with goals and analyzed your chosen organization (unit of analysis) with respect to strategy, environment, configuration, task design, people, leadership, climate, coordination and control, and information systems. Now we add another vital component to the design of the firm: what incentives do you give to individuals and groups so that they make decisions and take actions that fit well with the other design characteristics and help to meet organizational goals? Incentives support the firm's infrastructure of coordination, control, and information systems, and thus help to assure that work tasks are executed and organizational goals can be achieved. Design of incentives goes hand-in-hand with all the other components of organizational design.