High Output Management Chapter 9
Jan 1, 1970
Discussion of three ways workplaces steer behavior: market forces, contracts, and culture. Exploration of why pricing fails for collaborative work and when supervision is needed. Tips on building culture through hiring, onboarding, and shared experience. Ways to diagnose capability versus motivation and how to craft environments that unlock intrinsic drive.
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Three Modes That Control Behavior
- Human behavior at work is governed by market forces, contracts, and cultural values.
- Each mode fits different environments and motivations and managers should choose the right one.
When Market Versus Contract Fits
- Market mode works when value can be given a clear dollar price and parties act in self-interest.
- Contracts fit recurring but hard-to-price work and require supervisory monitoring and rules.
Culture Works When Rules Can't
- Cultural control prevails when environment is ambiguous and group interest must trump self-interest.
- Managers build culture by articulating values and, crucially, modeling them by example.
