(a)
Simons (1999, pg 768) describes intrinsic motivation as “desire to engage in behaviours or actions in anticipation of internally- generated rewards such as personal feelings of accomplishment” and extrinsic motivation Simons describes as (1999, pg 766) “desire to engage in behaviours or actions in anticipation of tangible rewards, such as money or promotion”. Extrinsic motivation is created by financial incentives. An incentive as Simons (1999, 767) describes as being “a reward or payment that is used to motivate performance.
The two types of motivation mentioned above can be used to design a rewards package for the product centre managers. First I will discuss intrinsic motivation; this type of motivation is “from within” (as Simon states (1999, pg 245)) rather than external. Managers can improve intrinsic motivation, Simon’s (1999, pg 245) states “they can make people proud of where they work” and also “they can involve subordinates in the goal setting process to increase the likelihood that subordinates will see the goals as legitimate. If subordinates are included in the process of setting goals-asked to provide input and information –they are more likely to feel that the goals are legitimate and work more diligently to achieve them”. The motivation is aligned to Air Tex Aviation’s performance goals, which are, the granting of credit but managers have performance goals set by Ted, monthly charges against their departmental profits, managers are more likely to stick to the rules set by Ted because they are in control of credit. Also, the purchasing of capital equipment and operating supplies but having predetermined limits this gives the managers a sense of control and able to make decisions without having to ask permission whenever a purchase was to be made. Moreover product managers are allowed to set policies such as pricing for products or services. They also have the power to hire, fire and administer the salary.
Product centre