Incentive Systems and Their Influence on the Capacity for Change

Proponents of Incentive Theory claim that employees contribute to organizations in response to the "incentives" they are provided. Incentives can be classified as material, solidary, status, or purposive. Dependence on particular incentive systems may determine the magnitude of organizational flexibility. This research examines the incentive systems operating in one Extension organization and how these systems affect the organization's capacity for change. The findings include Extension staff members' preferences for incentives based on: age, position, gender, job assignment, and ethnic background. These findings provide insights into feasible strategies for promoting organizational flexibility and for rewarding individuals for innovation.