Saturday 1 January 2022

Project manager incentive model exploration based on strategic framework

Abstract: Identify the basic framework elements of strategic organization, study the traditional and improved incentive model, and build the project manager incentive model based on the strategic framework of the organization. the model analyzes the interaction between individual performance process and individual incentive utility, and strengthens incentive utility through the design and improvement of the elements of the organizational strategic framework, and provides a game theory utility analysis method for establishing quantitative functions related to individual utility and defining the game balance between organization and individual utility.


International climate change, domestic environmental dynamic adjustment, production factors market situation is becoming more and more complex, market competition is becoming increasingly hot, organizational survival, development and competitive advantage to maintain more dependent on the core competitiveness of the organization. projects (generally referred to as portfolio, project set, multi-project, single project) as the realization of organizational strategy, more and more favored, has become the core competitiveness of strategic organizations. core competitiveness is rooted in the organization's core intellectual resources. as one of the core intellectual resources of the organization, the project manager is the core competitiveness of the organization and the key factor of the strategic human resource management of the organization.

It has found that people who are not motivated are generally only able to play 20% to 30%; if motivated, you can play 80% to 90% of the ability. incentive, as the driving factor of project manager's ability, is the key link of organization management. therefore, the project manager incentive model of strategic organization is studied in an exploratory way, which provides reference for the construction of core competitiveness of the organization.


The following concepts are basic support concepts.

The person model

The refer to the system man model in the organization and illustrate some of the elements assembled with the framework of system science and engineering as the base point. these elements cover some theoretical perspectives in philosophy, sociology, psychology, economics, management and other disciplines. the meta model of the system human model is mainly referenced, and the demand model derived from the meta model and the demand characteristic model are not discussed.

The basic elements of meta model include: animal body, which is the basic material element that determines the state of existence; philosophy of human nature, for the concept, the concept of elements; cognition, as a comprehensive element of intelligence; emotions and emotions, as psychological elements; labor is an essential element of human activity; social relations are essential elements of the organization's social environment. the content of these elements, as a framework support, is expanded in the analysis and demonstration of the following. since the reference does not affect the readability of the content, no detailed introduction to the system person model is made.


Based on the strategic framework of project manager management, "competence" is the basic element of strategic resources. the competency model reflects the complex qualities of project managers' ability to combine knowledge, skills and tools such as general management, project management, business areas, technical areas, and capacity to lead project management teams, conduct command, organize, plan, coordinate and control, and be responsible for project delivery.

Overview of the incentive model

The model is divided into two parts, with the elements at the organizational level to the left of the vertical dotted line and the project manager's personal performance process elements to the right. in the organizational management space, carrying individual behavior in the form of projects, realizing project performance, individual performance, and creating organizational performance. organizational and individual performance process elements interact with each other, constrain each other, and develop in concert.

The personal incentive utility, its connotation has the content of satisfaction, satisfaction, but it is intended to emphasize the benefit of generating incentive, but not whether satisfaction and satisfaction degree.

The results of many years of behavioral research show that there is no clear correlation between job satisfaction, job satisfaction and performance, while some subject areas agree with the existence of correlation. the model integrates multidisciplinary elements, analyzes the relationship between individual incentive utility and performance process, and tries to explore the extension of incentive theory through the design and improvement of organizational level and the enhancement of incentive factors.

In the model, some elements do not have clear boundaries, such as project manager, is not only the implementation of organizational design and governance, but also the behavior of individual performance process, the distinction in figure 1 is out of the need to discuss the organization.

Incentive model framework

Elements of the personal performance process

As the project manager of the core members of the organization, it is the instantiation of the system human model in the general sense. in a specific sense, it is the realization subject of organizational design and governance, which has certain competence, based on the individual's understanding of the organization's vision, mission, strategy, design and governance, politics, culture, learning, integration into the organization, receiving the tasks under the strategic combination, and generating personal performance through personal efforts; the organization evaluates performance according to performance standards, and at the same time gives incentives, the individual will also produce a performance self-evaluation, and thus form the individual incentive utility. personal incentive utility, affecting the efficiency and effectiveness of individual performance links to run again, and thus affect the organization's subsequent performance.

Organizational framework elements

The vision of strategic organization is deepened into the mission, and the mission gives birth to the organizational strategy; strategy acts as an engine, driving elements at all levels of the organization. the organization needs to carry out effective strategic organization design and governance, and at the same time lead the political, cultural, learning and carrying the organizational task of the organization. the implementation of organizational tasks is usually carried out by the portfolio of project sets, projects, operations and other tasks; strategic portfolio needs a certain maturity of the system and process to ensure the realization of strategic performance goals. maintain good performance and improve through organizational performance evaluation and effective incentives.

based on organizational utility, project manager's personal incentive utility, and other elements, the organization needs to continuously design and improve the elements of the strategic framework in order to motivate the project manager and improve organizational performance.

Personal incentive utility and performance process

individual incentive effectiveness interacts with the various elements of the performance process.

(1) material basis. the project manager's personal material base level is an important factor in his incentive effectiveness.
project managers and their family members urgently need to rely on the material basis for survival and development, material incentives to the incentive utility contribution is relatively large, grasp the incentive intensity, may produce encouragement or threat utility. The project manager has a good personal material base, and the strength of the material stimulation becomes important. insufficient incentives can have marginal incentive effects, follow-up may not be effective in the organization, and material incentives need to be increased or other incentives adopted.

(2) personal philosophy. the project manager's natural view, social view, thinking view and emotional view of personal philosophy are related to his view of survival and development, and are the key elements of the overall cognition of organizational elements and individual performance processes, which measure the action objectives, action process, action results, pay and income. this is the basis for the degree of acceptance, often regarded as the core factor of incentive utility, but also to determine the incentive mode, motivation intensity of an important basis.

Incentive utility also affects personal philosophy to some extent, if the incentive is right, it can consolidate the positive professional logic and promote the personal philosophy, which will produce a virtuous circle; otherwise, it may impact the original concept of work, adversely affect the follow-up, and may form a vicious circle.

For ideas that cannot be reconciled, such as the project manager's abhorrence and serious confrontation with the organization's complex project management process, it may really be "different and not conspiratorial" and incentives are not applicable.

(3) know. the project manager's ability to understand all aspects of the organization, such as his own ability, strategy, organizational structure, task arrangement, process assets, business environmental factors, politics, culture, learning, has a certain impact on incentive effectiveness.

For example, the project manager's incomprehension of strategic objectives leads to poor project performance; if the project manager is aware of the problem, he or she is able to maintain a positive attitude to behavior even if he or she is not motivated; if you don't realize what the problem is, you may be depressed or even passive. Incentive effectiveness may also affect the project manager's understanding and judgment of the organization, may misplace the organization's culture, system, or lack of self-awareness, affecting follow-up behavior.

(4) emotions and emotions. the project manager's emotion, emotion pattern and organizational elements, the contradiction of individual performance process, the degree of resonance, has a certain impact on the incentive utility; utility, in turn, affects emotions and emotions and has an impact on subsequent work. contradictions and resonances should be within the control of emotions and emotions, otherwise they are harmful to the organization.

for example, some project managers like to have brotherly feelings with superior managers, and superior managers of a cup change, push heart, may be better than the incentive of bonuses.

for example, some organizations' emotional patterns are relatively high, and the success of the project requires publicity, celebration, cheering, and applause. if the project manager is too quiet and calm, he may think the organization is too noisy. the effectiveness of this incentive is less obvious and may also be offensive to the project manager, with implications for subsequent actions.

(5) labor. labor ability, labor pay, labor results, labor status, labor income, and performance process, performance results are closely related to the project manager's incentive effectiveness, at the same time, utility also affects all aspects of labor.

based on the performance appraisal of the strategic framework, we should not only consider the labor results, but also consider the project manager's pay. labor pay is based on labor ability and labor volume, that is, to consider the ability of input. the same is the management of projects, management of a complex project and management of a simple project every day put in different efforts, labor income should be different.

the project manager's organizational status, that is, labor status, in a way means that the organization's degree of recognition, the incentive utility has a greater impact. if the organization does not pay enough attention to the project manager, its position in the organization is relatively low, even if the better material incentive, spiritual incentive is difficult to calm the project manager because of the status of the psychological imbalance.

incentive utility affects the project manager's labor ability, labor pay, labor status, labor achievement recognition, has a certain impact on the follow-up behavior.

(6) social relations. project management involves a wide range of stakeholders. social relations affect all aspects of project manager's work, project execution, performance evaluation, incentive income, incentive effectiveness.


The traditional incentive theory, the project manager's competence, affect the judgment to achieve the goal of the possibility, affect the effectiveness of incentive. incentive utility reflects the degree to which the project manager and the organization agree on incentives, which has a certain impact on the achievement of subsequent performance, and thus affects the improvement of follow-up competence.

Integration into the organization

The extent to which the project manager is integrated into the organization, including the degree of understanding and recognition of strategic objectives, organizational structure, systems and processes, deliverables, performance evaluation, incentive mechanisms, organizational politics, organizational culture, organizational learning, and integration with them at work, has an impact on performance achievement and on incentive effectiveness. on the whole, the degree of integration into the organization affects its overall understanding and feelings of the organization, and also affects the effectiveness of incentives. in part, if the division of interests within the organization does not agree, incentive effectiveness is not good.

The incentive effectiveness of the project manager may increase or decrease the extent to which the project manager is integrated into the organization; may be more acceptable, reject the organization's vision, mission, strategic objectives; personal goals, actions and organizational goals, processes more integration or divergence; may be more positive and negative about organizational politics, may form friendly alliances with more stakeholders to promote project progress, may complain with stakeholders, and may even form rebellious project teams; may be more integrated, deviate from the organizational culture, may boost team morale, may also depress team morale, or even form a departure from the organizational culture subculture; it may improve the learning patterns of the team and individuals, or it may reduce the learning patterns of the team and individuals.

Receive tasks, personal efforts, personal performance output

The complexity of the tasks received by the project manager, the conformity of the tasks and interests, the conformity of the tasks and career development, the conformity of the tasks and abilities, the input of individual abilities, and the influence of incentives and their effectiveness.
The motivational utility of the project manager has an impact on re-acceptance of tasks and personal follow-up efforts. more effective and more inclined to take on more and more challenging tasks to improve project performance; less effective, may be lazy to accept or refuse to accept tasks, personal efforts will be greatly reduced, reduce project performance.

Self-performance evaluation

The difference between the project manager's self-performance evaluation and the organization's performance evaluation and the organization's incentive often has a great influence on the incentive utility.

The motivational utility of the project manager will affect the project manager's re-evaluation to a great extent, there may be higher evaluation, there may be lower evaluation, or even self-absorption evaluation, the follow-up behavior has different degrees of impact.

Organizational framework elements design and improvement

organizational framework elements have an impact on the individual performance process, which can be designed and improved to motivate project managers and improve incentive effectiveness.

Organizational design and governance

(1) project management organization. 

Strategic organization design, resulting in different project management organization, management organization structure, roles, responsibilities will be different, project manager's ability to play different, management effect is not the same.
according to the characteristics of the project task, the organization should adopt a variety of organizational forms, diversified way of staffing the project manager, responsibility, authority, benefit appropriate, in order to motivate the project manager.

Where organizational conditions permit, project-type, strong matrix, balance matrix and other organizational forms, as far as possible, the project manager as much as possible authorization, can be more incentive project manager.

(2) competence standards. 

Based on strategic human resource management, extract resource requirements from strategic requirements, form project manager quality requirements, establish a hierarchical project manager competence model, realize the composite management based on competence and position, and change the traditional model based solely on position management.

The hierarchical project manager competency model can identify the project manager area as a number of levels (e.g. elite qualification, senior qualification, senior qualification, intermediate qualification, junior qualification project manager), establish the career channel of the project manager, form a contribution-oriented career system, and effectively motivate the project manager to make greater contributions.

Based on the hierarchical project manager competence model, the establishment of a hierarchical and differentiated project manager training system, targeted training of project managers, and better project performance of project managers, can provide course training, expansion, out-of-production learning as a reward, will effectively motivate project managers. based on the hierarchical project manager competency model, establish the principle of use of hierarchical and differentiated project manager.

different levels of project managers to manage different levels of projects, so that project managers have a sense of responsibility, sense of existence; at the same time, project manager promotion is closely related to project attributes managed by project managers, which can motivate project managers to participate in more project management practices.

       based on the hierarchical project manager competence model, the establishment of a hierarchical and differentiated project manager appraisal mechanism, so that the project manager feel that they are going through different tests, is a challenge incentive, but also a threat incentive.
       based on the hierarchical project manager competence model, a hierarchical and differentiated project manager reward and punishment mechanism is established, especially when the reward and punishment are linked to the promotion and regression and material treatment of the project manager, the incentive mechanism of carrots and sticks can be formed.

(3) systems and processes. 

The maturity of the project management organization will affect the productivity of the project manager. the organization must define clear systems and processes, be guarantee-oriented, efficiency-oriented, practice-oriented and operational-based in order to effectively motivate project managers to manage projects.

Person model

(1) material basis.

This characteristic is the material basis for the project manager to maintain personal and family existence and development. the basic material incentive is the more fundamental material guarantee, which determines the conclusion or continuation of labor contract to a great extent. the incentive of material condition improvement is also an important value embodiment of the project manager's personal development.

the basic form of material incentive: wages, subsidies, incentives, and benefits.
establish a hierarchical, differentiated, position-based, competency-based wage system.
subsidies are given for the work in addition to the usual conditions such as adverse environment, overtime, travel, communications, transportation, dining, accommodation, etc.
it is also a more conventional way to establish reward systems based on project performance. according to the competence and contribution of the project manager, give the value compensation in the form of options, stocks and so on, to share the company's management results, but also to change the labor status, can better motivate the project manager; to give dividends, wealth management products, bonds, precious metals and other forms of value compensation; compensation for the value of real estate, vehicles, etc.; for the project manager's high-end consumption to give loans, interest, value return nature of value compensation.

benefits, for daily meals, communications, transportation, heating, heating, office notebooks, etc. subsidies in the form of public cars, public housing, rent, etc. according to competence and contribution; subsidies in the form of paid leave, free travel, paid study, etc.

(2) personal philosophy. 

Capture the personal philosophy of the project manager group, identify differences between it and the organization's ideas, and coach the project manager group.
establish and adjust publicly recognized values, such as "contribution is the individual's respect and satisfaction with the organization", which can motivate the project manager group from the overall meaning and enable the group to work towards a trustworthy and highly recognized value.
for individual project managers, it is necessary to understand the personal philosophical differences, communicate, coach, and achieve the basic recognition of organizational philosophy.
the integration of project manager group and organizational philosophy can be supplemented by certain mechanisms, such as organizational history, value knowledge contest, debate, discussion, essay, salon and so on. through these forms, the integration of project manager group and organizational philosophy is improved, and the incentive utility of project manager is improved.

(3) know. 

it is an important measure for the organization to create conditions to enhance the project manager's peaceful understanding, rational understanding and stimulate his growth. the exposition of culture has been covered in other parts and will not be repeated. it should be emphasized that, combined with the multi-dimensional career development channel of the project manager, it is necessary to build a multi-dimensional training system, so that it can see more development prospects.

(4) emotions and emotions. 

As a member of the organization of universal significance, the project manager group has a popular emotional and emotional pattern. as for emotional intelligence is not science not to discuss, but the project manager emotional, emotional education, is a good psychological education incentive.

Teach project managers to control personal emotions and deal with organizational and employee emotional and emotional issues; let the project manager learn to build an emotionally appropriate and harmonious project team; teach project managers to improve the efficiency of communication with stakeholders through emotional communication; make project managers aware that building a harmonious and welcoming team can improve communication efficiency, resolve conflicts, and work toward them.

Teach the project manager to control personal emotions, relieve personal stress, and make a positive impact on the team; teach the project manager how to deal with team emotions, how to relieve team pressure, and how to put pressure on the team.

the above emotional and emotional processing mode, need a certain degree of professional guidance and training and organization of the environment. creating this kind of motivation often has the effect of silence.

(5) labor.

The participation in labor is one of the most fundamental incentives, for the project manager to design the right tasks, which is the most basic management rules, but also the basic requirements of the legal and moral framework. it is necessary to design suitable project tasks for project manager by combining the competence, career development, personal interest, living space and other factors.

Improving the ability of labor, enhancing the competence of project managers, improving the quality and efficiency of projects, and improving the level of project managers are the fundamental to the improvement of organizational productivity. the organization needs to establish a perfect and hierarchical project manager training mechanism, including the combination of theory, practice, theory and practice; create various forms of supporting training mechanism, including on-site, self-taught, network training methods.

Income from labor may include the above mentioned material incentives and other forms, such as giving individual development, participation in management, interpersonal communication, learning and other opportunities.

Labor status is the affirmation of the position, position and level of the worker, which is both a right and an interest. in addition to the above mentioned, according to the project manager competency model construction of the hierarchical project manager career channel, but also to open the project manager position system and other job system channels, such as can be hired for the ability manager, supervisor, director, senior technical positions and other positions. let the project manager's career development channel present the form of mesh interweaving, and there is a strict scientific system to ensure.

(6) social relations. 

The social relations in an organization are the general term for the interrelationships formed by the members of the organization in the course of common material and spiritual activities, that is, all relations between people. in many relationships, production relationship is the basic relationship, affecting all aspects of other relationships.

organizations can design diverse forms of ownership to motivate employees, such as employee shareholdings, employee options, management holdings, intangible assets, etc.
the distribution of the organization, employee status, and employee relations are discussed in other parts and are not repeated.

Learning mode

single-loop learning and double-ring learning are important contents of organizational learning. in the organization, the project manager's single-loop learning and double-loop learning are necessary.
the learning model of project management can be embodied in institutionalized and non-institutionalized. the institutionalized learning mode is mainly embodied in the project management system of the organization, and the non-institutionalized learning mode is embodied in the organization management habits.

to establish a stable and flexible single-loop learning model project management system, under the conditions allow, to carry out certain system improvements, to

ensure the reliable implementation of the project, efficient operation, reduce the project manager position (position) risk factor; through the organization's day-to-day management drive, so that the non-institutionalized single-loop learning model becomes the project manager's management habits, curing in its daily work, so that the operation management model service project management, so that the project manager forms a stable job feeling; this motivates project managers to participate in project management activities and shapes a single-loop learning model.

the project management system of the organization should have a two-ring learning mechanism, there are improvement measures based on systemic problems, but also improvement measures based on special problems, these improvements are system innovation, not system improvement, so that project managers follow the system to grow together; through the organization's day-to-day management drive, so that the non-institutionalized dual-loop learning model becomes a sharp instrument, forged in the thinking, can be at any time to improve the single-loop mode, to deal with the problem at any time; grow the project manager into a system innovation manager. this growth incentive induces and meets the growth needs of the project manager and generates positive behavioral motivation.

Vision, mission, strategic objectives

       in the organizational strategy, the development and positioning of the project manager should be covered.
       the organization integrates the motivations and behaviors of the organization and individuals in a way that allows the project manager to understand the vision, mission, strategic goals, strategic tasks, and how they are integrated with their own goals.

Organizational politics

organization is not only a strategic design, but also a political system, the core issue of which is interests and power.

from a political point of view, interests are the foundation of the behavior of organizations and individuals; rights are the ability to influence the behavior of others.

in the organization, consider the project manager's beneficial design. such as salary priority floating, setting up projects and project manager-related awards, honors, free training, participation in higher-level management, high-level dialogue, study abroad, job registration, rotation, promotion, cadre exchanges, other career priority development channels.

The more rights you have in your organization, the greater your resource advantage, the more efficient your behavior, and the more likely you are to achieve value. the rights of the project manager should be established in the organization; where available, maximize the project manager's authority. 


For example, the project manager has the right to evaluate the performance of the project team; material incentive, spiritual incentive right; have the project task scheduling right; have the allocation right of the project team; have project budget management and control; the right class affirms and supports the attitude of the project manager group; the project manager's request for the escalation of problems and risks and requests for help should reach the right class; the right class should make the project manager the backbone of changing the status quo of the organization; organizational goals have not been achieved, the project manager's exemption mechanism as loose as possible; the organization focuses on the main contradictions in project management and adopts strategies.

The organization establishes a trust relationship with the project manager through the design of interests and powers.

  1. Organizational culture
  2.        in the core value design of the organization, the existence of the project and the project manager is reflected as far as possible. in a way that allows the project manager to fully understand the core values of the organization.
  3.        the organization should design the symbol and image category logo at the organization level for the project and project manager; there should be a project manager in the story, memorabilia, and development history of the organization.
  4.        the organization should cultivate the basic assumptions of good project manager group behavior, pay attention to this assumption at all times, and prevent undesirable tendencies.



Organizations to design a variety of project cultural realization forms, such as the establishment of project manager salons, project management forums, seminars, competitions, expansion, receptions, etc. establish a project management excellence award; establish the project manager excellence award; establish the outstanding project manager award; reward outstanding project teams; reward the project manager to promote the project process assets into organizational process assets; reward core project team members; reward project managers who participate in the construction of project systems at the organizational level; encourage project managers to participate in external communication; encourage project managers to develop management of scientific and technological achievements.

Strategic portfolio and mission arrangements

Strategic organizations, usually organized in a strategic combination, require task identification, classification, evaluation, selection, sorting, balance, communication, delegation, etc., during which different levels, characteristics, behaviors, culture, interests, career direction project managers can be assigned different categories of tasks.

Organizational performance evaluation

Organizational performance system should reflect objectivity, scientifically, impartiality, comprehensiveness, focus, pragmatism, effectiveness, humanization, difference and improvement in order to effectively motivate project managers.

Appraisers, performance indicators, system processes and calculation methods should reflect objectivity and science.


The operation of the appraisal method and the balance of the appraisal results should reflect the fairness. avoid stereotyped effects, halo effects, centering effects, loose or tight tendencies, personal bias of the appraiser, first-cause effect (first impression).

Assessment indicators should have more comprehensive coverage for organizational and project-level work; reflect the ability, workload input, reflect the process of action, reflect the results of action; while considering comprehensiveness, we should also focus on effectively identifying strategic values.
Assessment indicators, process system must be pragmatic, economical, technical, operable, the assessment indicators must be effective, targeted, standard, measurable, comparative. assessment indicators, process system can not be too rigid, mechanical, to reflect humane care, emotional concern, to humane.

The design of the appraisal system should reflect the difference, distinguish the characteristics of personnel, project characteristics, type of work characteristics, can not be one-size-fits-all, performance management should be effectively combined with organizational management improvement.

Other environmental factors

Organization is not isolated from the external environment, to participate in the organization of external social production relations, access to social factors of production, participate in social competition, in the design of incentive models to consider the political, economic, cultural, technological, market and other factors outside the organization. for example, based on market positioning compensation strategy, can be leading, follow-up, lag-type.

Organizational incentives

For organizational incentives, the above is described in more detail from the design and improvement of organizational framework elements, here are several incentive principles for reference:

  • Fairness. "no poverty, no inequality", in the incentive, this principle is the most important. 
  • Pertinence. incentives should be directed at those elements that motivate behavior and increase efficiency.
  • balance. organization is an incentive for project managers, we must reflect the political, economic and cultural balance in the organization.
  • differences. avoid one-size-fits-all incentive policies, to be motivated by people, causes, processes, and results.

diversity. combined with the above analysis of organizational framework elements, material motivation, spiritual motivation, emotional motivation, emotional motivation, threat incentive, environmental incentive, job incentive, training incentive, life freedom incentive and so on can be considered.

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