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Reward systems to motivate employees
Positive effects of giving rewards to employees
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BUSN140 Mastery Assignment CLO 3
Jacqueline Tinoco
BUSN140
Mr. Lewis
March 21, 2017
Everyone likes to feel appreciated and valued by their employer. There is no better feeling than seeing your hard work pay off. Being rewarded for a job well done is something that people enjoy and being rewarded does not always mean receiving money sometimes a simple gesture, for example leaving them thank you note for staying late one day makes the person feel like you actually care and it makes them feel good about themselves. Having a good compensation strategy provides a company will a safety net for retaining their employees.
Coming up with good compensation plan is essential to establish a successful business. Including benefits for your employees is a good way to grab potential employees attention. Not many business offer benefits anymore, perhaps providing employees with benefits such as a health or retirement benefit can be the determining factor for whether the potential employees takes the job. Coaching and mentoring employees can help increase the productivity of the organization and will also help employees become closer. Structure is critical it is the backbone of an organization, structure provides employees with a sense of responsibility. (Lotich, 2015) stated that organizations
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Incorporating a pay for performance plan is an effective approach to retaining employees. Adding this plan also reinforces the values and goals of the organization. When people are being paid more for performing a superior job motivates employees to work harder to achieve a better pay. Communicating to the employees how they are doing is essential without the communication they will not know if they have improved or in what way they can improve. After all everyone has room for improvement, but without proper feedback no one would know how better
An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.
"A simple thing such as giving a employee a little reward for outstanding performance for a month or a year could help motivate other employees to want to do better so that they could have the chance to be recognized for their outstanding work.
If the organization succeeds then the employees also succeeds. Employees must see the bigger picture and must feel that they are part of the organization and not just a one man show.
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s
However, the impact of PRP doesn’t seem to reach the desired expectations and it doesn’t always effect positively on the performance of employees. According to a research by Aflie Kohn money and status are not the primary motivation for employees. In contrast, gaining recognition, the sense of achievement, the excitement of challenge and the place enjoyment of the job are the most common motivations for a higher performance. These former motivators succeed producing only temporary compliance and not a long term change in motivation and commitment. However, the latter motivations such as sense of achievement and the excitement of challenge are much more effective for achieving long term commitment. Moreover, poor payment effects negatively on the performance of employees, they view poor payment as a sign that they are not valued enough by the organization. Also, PRP damages team work, due to the fact that employees work to gain individual benefits and this effect the improvement of the team collective gain. The PRP awards create jealousy competition and resentment and these lead to destroying working relationships. In conclusion, most countries, like European countries and Japan, don’t use the PRP method, while UK and USA do; the former countries posses a longer-term vision than the latter countries. Both the ineffectiveness of
Johnson, Sam T. "Plan your organization’s reward strategy through pay for performance dynamics: Compensation & Benefits Review 30, Number 3: (May/June 1998): 67-72
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
Job satisfaction includes challenging work, interesting job assignments, equitable rewards, competent supervision, and rewarding careers. The quality of work life and psychological rewards from employment are very important. It is doubtful, however, whether many of us would continue working were it not for the money we earn. This paper establishes the definition of compensation, overview of compensation philosophy, critical components of a compensation strategy, and an example of an effective compensation practice. (www.indiana.edu/~busx420/Book.../chap09.doc)
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and