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Archive of posts tagged incentive systems

The Characteristics of Process Orientation. Part 6: Process-Oriented HR-Systems

Human resources systems have to support the process approach (Hammer, 2007). In a process-oriented enterprise, the process design should drive job descriptions. Also, incentive systems should be implemented which emphasize the process’ needs.

  • Job descriptions based on process design: The process’ design should drive role definitions, job descriptions and competency profiles.
  • Reward systems (incentive systems) that emphasize the needs of the organization’s business processes: Old reward systems based on the functional model are no longer viable in a process-based organization (Armistead and Rowland, 1996). Traditional vertical management systems pull people in one direction, whereas they should work for the interest of interfunctional processes. Therefore, management systems also need to emphasize the process’ needs, otherwise conflict and confusion ensue, lowering performance (Hammer and Stanton, 1999).