Organizations today are generally managed by either the “Control” or the “Caretaker” Model.

The Control Model is based on the military where rules and chain of command are the hallmarks. Pure forms of this model are rare today and are consistently attacked by today’s leading management gurus. Among the many problems with this form of management is that it is both inefficient in use of resources and totally ineffective with the Generation X/Yers.

The Caretaker Model is also generously known as the Commitment Model. Most management gurus prescribe some form of this model. All forms derive from Frederick Herzberg’s theories on motivation. He says “motivator factors that are intrinsic to the job are: achievement, recognition for achievement, the work itself, responsibility, and growth or advancement.” Other associated caretaker concepts include:

• Empowerment
• Self-managed teams
• “Money doesn’t motivate”
  
• Individual autonomy
  
• Trust
  
• Job enrichment, especially vertical job enrichment
  
• Individual accountability
  
• Flexible hours
  
• Job rotation
  
• Open and visible business information
  
• Minimal critical specification of rules
  
• Variance control at point of origination
  

What is wrong with these concepts? Generally nothing! It’s just that no combination of the above ideas will come close to realizing an organization’s potential.

In addition to the Control and Caretaker Models, consider the Performance Model of management theory: 

1. Emphasis is not on control, empowerment, or any traditional management focal point. 
   
2. Key Performance Indicators and other measures are used to facilitate Fact Based Management. 
   
3. Everyone in the organization is preoccupied with performance. They are owners and are rewarded for organizational gains through a Gain Share Plan, possibly in the form of a Virtual Performance Company™. 
   
4. Key core value adding linear work is covered by a Direct Incentive Plan that changes all traditional dynamics and moves individuals out of the Entertainment / Entitlement Zone to the Performance Zone. 
   
5. Gain Share and Direct Incentives are uniquely linked to reinforce each other, and the design effort is socio-technical. 
   
6. Incentive Baselines are set using 6 weighted rating factors including culture & business mechanisms. 
   
7. Situational Sculpted Pay Curves optimize incentive impact. 
   
8. A Continuous Improvement System works in concert with the Pay System. 
   
9. Non-value adding work naturally disappears. 
   
10. The underlying principle is, “When a group of people work in concert to advance the business, a by-product of the effort is a better functioning social unit.”