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…show more content… Simon’s (1999, pg 764) describes boundary systems as “explicit statements embedded in formal information systems that define and communicate specific risks to be avoided”. Boundary Systems in the situation of Air Tex Aviation are, Simon’s (1999, pg 297) described as “rules, limits and proscriptions”. Rules in Airtex Aviation are decentralising the business, installing a control system. Limits introduced are profit centre’s having the authority to buy operating supplies and capital equipment with purchase order limits. A reason for limits is described by Simon’s (1999, pg 297) as “to allow individual creativity within defined limits of freedom”. Proscriptions include removing Sarah Arthur and her accounting system as it was not working and introduce a control system that support’s the management and provides information needed in order to make decisions. The accounting system before gave employees a lack of motivation because they were not involved in the decision making process. Also Simon’s (1999, pg 279) states “communicate standards of business conduct for all employees”, that’s what the new control system does, involves all employees.
My recommendations to AirTex Aviation would be use all four levers of control together as one can’t work without the others. Also I would recommend the company when financially able to perhaps train managers, as most employees have only