Thus, the organization can set certain financial benchmarks that it desires the director to meet, and encourage the individual to meet such benchmarks. Variable pay is a possibly powerful incentive system for a potentially disinterested individual, who might be content to be a figurehead.
However, the leader of a nonprofit organization presumably is motivated by something more than pure financial gain. Nonprofits traditionally cannot pay the largest salaries in the executive salary marketplace, certainly not as large as the salaries of the major for-profit corporate organization. Leaders are drawn to these not-for-profit entities for a chance to give back to the world, to fight for a cause they believe in, and to gain exposure, good publicity, and media recognition. Thus making financial compensation the main motivator for success seems counterproductive. If the individual in question was solely motivated by financial gain, he or she would have looked elsewhere for a position. Giving the new director some additional leeway in terms of cultivating pet projects, or added opportunities for media exposure might be a better way to encourage the new director to feel a strong personal investment in the organization and to fight for its future success.
Question
You supervise a group of 10 people in a manufacturing environment. One of your direct reports, Mitch, has confided in you that his wife has left him and has filed for divorce. He has seemed depressed, often a few minutes late for work, low-energy.
One of Mitch's coworkers mentioned to you that Mitch told him he "just wanted to blast everybody," and at another time he "just wanted to close the door and turn off the...
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