Alignment of Incentives
- Short Description
- Aligning the interests of employees with the interests of the company, our customers and society…
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/alignment-of-incentives-
Description
Koch succeeds to the extent everyone is motivated to develop and apply their abilities in harmony with our principle-based framework.
We seek to align the interests of all employees with what will be beneficial for them and the organization. This alignment provides roles, work, authorities and rewards that motivate the maximum contribution to their organization and ultimately to Koch’s long-term success.
We provide rewards that motivate greater contributions and reinforce performance feedback. We recognize contributions that have built capabilities and have generated or will generate results – including past contributions that haven’t been fully rewarded.
We don’t penalize well-designed experiments that fail, because they create knowledge leading to better decisions.
We seek to align the interests of all employees with what will be beneficial for them and the organization.
Highlighted Principles
Contribution Motivated
- Short Description
- Contribution motivated people are energized by continuously trying to improve, innovate, transform and creatively get results – which enables them to live lives of meaning.
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/contribution-motivated
Contribution to Koch’s long-term success
- Short Description
- Coming soon
- Principle in Brief Page
Life of Meaning and Synergy
- Short Description
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/life-of-meaning-and-synergy
Motivation
- Short Description
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/motivation
Requirements for Human Action
- Short Description
- What causes people to act?
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/requirements-for-human-action
Rewards, recognition and compensation
- Short Description
- Coming soon
- Principle in Brief Page
Self-Actualize
- Short Description
- To self-actualize is a deeply personal and unique journey of discovering your aptitudes, developing skills and using them in productive ways.
- Principle in Brief Page
- /content/koch/language-masters/en/principles-in-brief/self-actualize
Subjective value
- Short Description
- Coming soon
- Principle in Brief Page
What has changed
We have changed the name of this dimension in recognition of the fact that motivating people to maximize their contribution to their organization and ultimately to Koch’s long-term success requires much more than financial incentives.
To become fully motivated in this way, people also need: to have meaningful work that fits their talents and passions; to be treated fairly and with dignity and respect; to be given the opportunity to have some control over their activity and be creative; to be able to develop and grow and increasingly believe in themselves; and to become what they are capable of becoming.
Beneficial financial incentives reinforce these attributes by rewarding contributions to the long-term success of Koch. A primary responsibility of supervisors is to ensure employees understand how they earned their compensation and how to increase it.