In addition to the Control and Caretaker Models, consider the Performance Model of management theory:
- Emphasis is not on control, empowerment, or any traditional management focal point.
- Key Performance Indicators and other measures are used to facilitate Fact Based Management.
- 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™.
- 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.
- Gain Share and Direct Incentives are uniquely linked to reinforce each other, and the design effort is socio-technical.
- Incentive Baselines are set using 6 weighted rating factors including culture & business mechanisms.
- Situational Sculpted Pay Curves optimize incentive impact.
- A Continuous Improvement System works in concert with the Pay System.
- Non-value adding work naturally disappears.
- 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.”