The theory of amount of incentive is a theory of the work motivation. The basic idea of this theory is it, an equilibrium between the "“incentive"” (remuneration, prestige) to manufacture and/or keep upright and the "“contribution"” (work). Only so the organization can exist. (Abb.1)

The incentive contribution theory represents an important part of the neoclassical organizational theory beside the relation beginningbeginning relation beginning. Preceding beginnings (e.g.: Bureaucracy beginning, administrative beginning,"…) under the term classical organizational theory are summarized. Temporally following beginnings (e.g.: Human resources beginning, Stukturalisti beginnings,"….) are assigned modern organizational theory to the term.

Tab.1 of incentives and contributions (after Simon)

"„The individually is always the basic strategic factor in organization. Regardless OF his history or his obligation he must induced ton cooperate, or there CAN NO cooperation "“(barn pool of broadcasting corporations 1938)

Representative

Chester barn pool of broadcasting corporations (* 1886; "† 1961)

Herbert Simon (* 1916; "† 2001)

James March (* 1928)

Core statement

In order more exactly to specify the above introduction to the topic, now the following central stating of the incentive contribution theory are represented. (Simon 1976, March/Simon 1958, Simon 1957, barn pool of broadcasting corporations 1938)

• The enterprise is interpreted in this context as a cooperative system.

• Organizations induce individuals by incentives to the participation. In the context of their participation individuals make contributions.

• The existence of an organization hangs strongly of the readiness of the members contributions to off carry out and thus a co-operation group to form.

• Thus an equilibrium between incentives and contributions is to prevail.

• Individuals make contributions only so long, how they notice the required incentives as at least equally large or more largely than their contributions.

• There the contributions of the participation place resources, in order to offer so-called "„remuneration "“or "“remuneration"” the participation as incentive.

• Organizations are only so long in the equilibrium, as the contributions are sufficient to create so many incentives that the individuals are motivated to further sufficient contributions.

Interpretation and continuation of the core statement

Thus it can be derived that survivability depends the balance between satisfaction and load on organizations on it whether be manufactured can. The satisfaction of the participation is affected by the subjective motives and needs of the individual individuals. In addition comes, how different possible alternatives to the satisfaction are evaluated. Since motives, needs and alternatives constant changes are subjected, the provided incentives must be always adapted. Thus itself an enterprise must, in order to be able, constantly the new conditions adapt to survive. (Simon 1957)

As already represented, incentives stand in connection with needs of the individual individuals. Around incentives to create above all material needs are the center of attention after classical aspect. After the neoclassical aspect however, according to barn pool of broadcasting corporations also immaterial needs are of importance. Berne pool of broadcasting corporations, Simon and March (barn pool of broadcasting corporations /Simon 1976, March/Simon 1958) enumerate some immaterial needs and point out with the fact however that it concerns here rather possible sources for incentives, which are to be put down not generally on each organization, but on the respective situation consideration must be taken. As example of a source of non-material relations social relations can be stated. Is referred to the first paragraph, which represents already the so-called "„relation beginningbeginning relation beginning "“as an affecting topic of the incentive contribution theory. (Barn pool of broadcasting corporations 1938)

As previously mentioned material and non-material "„remuneration do not only play "“in the decision-making process of a Individiums a role, also the wahrgenommnen alternatives already mentioned are crucial. This phenomenon was analyzed by Simon and March on basis of contemporary empirical research. (March/Simon 1958)

Berne pool of broadcasting corporations dedicated itself in the further one also to the subjective perspective the participation. It arranged to affect thereby its attention in such a way on the attempt of needs and use functions of individuals that these notice the offered remuneration as sufficient incentives.

Criticism

Critics of the incentive contribution theory describe the following arguments as weak points of the theory:

• It is not exactly defined which incentives and contributions is.

• The separation between incentives and contributions is indistinct.

• No concrete Gestalungsempfehlungen is called.

• The incentive contribution theory favours a psychological reductionism. (closed view of individual elements without consideration for the total meaning)

• The incentives and contributions are reduced to only one utilizable value.

• Individual characteristics of the participants are not referred. (e.g.: Career planning)

• It not specifies which incentives and contributions in a certain situation are important.

Literature

• Barn pool of broadcasting corporations, Chester: The Functions OF the Executive, Campridge, mA, 1974, ISBN 0-674-32803-5

• Simon, Herbert/Smithburg, D.W./Thompson, Vth A.: Public administration, New York, 1950

• Simon, Herbert (Hrsg.): Models OF one: Social and rational, New York, 1957

• Simon, Herbert: Administrative Behaviour. A Study OF Decision Making Processes into administrative ones organization, 3.Aufl., New York, 1976

• March, James /Simon, Herbert: Organization, New York, 1958, ISBN 0-471-56793-X

Articles in category "Incentive contribution theory"

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