An evaluation research of the application of a reward system within a holacratic organization.
Keywords
Loading...
Authors
Issue Date
2019-11-14
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Purpose– The purpose of this research is to explore how employees experience their current reward system, named the Baarda model, and rewarding aspects within a self-managing organization. From literature, little insights are known on reward systems within self-managing structures, resulting in organizations who need to develop their own reward system which suits their self-managing structure.
This research is conducted in order to better understand the rewarding challenges holacratic organizations face and provides insight into one particular reward system, the Baarda model, and give a comprehensive description how this model and associated rewarding aspect are used and experienced.
Methodology– In order to achieve this insight, a focus group and in-depth interviews were conducted. In addition, the fourth generation evaluation method proposed by Guba & Lincoln (1989) was used. By applying this method, knowledge could be structurally created, and insight was gained into which reward aspects employees in a holacratic organization are experienced and considered important. Eventually, these results were compared against five functions every reward system must fulfill in order to be effective. These functions are: attraction, retention, motivation, define and reinforce the
organizational structure and define and reinforce the organizational culture.
Findings – The employees are primarily intrinsically motivated and are mainly attracted and retained by the challenging work and the enjoyable atmosphere within the organization. However, there is still room for improvement by recognizing the high-performance employees more. The Baarda model and associated rewarding aspects define the organizational structure because employees gained insight into what they can expect from their fellow colleagues. However, the organizational structure is not
reinforced because employees linger in their profile for too long, resulting in being under- or overpaid.
Finally, as the reward system is perceived as transparent and fair, the implemented Baarda model and the associated rewarding aspects make a positive contribution to the culture. However, this culture is not reinforced because the employees in the workplace do not provide each other informal feedback and there are few formal feedback mechanisms within the organization.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen