Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The Relationship Between Employee Motivation and Performance
The Relationship Between Employee Motivation and Performance
The Relationship Between Employee Motivation and Performance
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Riordan Manufacturing has been through several strategic changes in its marketing and manufacturing efforts, which have significantly decreased employee retention. In performing an employee survey this decrease in retention has been attributed to a decrease in overall job satisfaction, specifically in the areas of compensation and benefits. Riordan's current rewards program is not based on performance, but instead recognizes aspects, such as cost-of-living increases, seniority, and position despite recent performance data identifying most of its employees as mid-tier performers and a small group that is not performing well at all. With declining morale and work ethic, Riordan's managers want something done about the current system and should keep in mind that in 'Designing and delivering a total compensation program requires a compensation philosophy that creates measurable standards for employees to follow and uses those standards to evaluate employee performance and allocate rewards (Ulrich & Brockbank 2005, p. 23)'.
Craegmoor Healthcare is an organization which faced a similar issue to Riordan manufacturing. Craegmoor Healthcare had a turnover rate of approximately 60% per year in 2004. This high rate of turnover was attributed to poor pay and training, low staff morale, poor leadership, and lack of employee engagement. In recognizing the fact that something had to be done, Craegmoor's board created a strategy, which outlined its problem areas as well as its approach to addressing three areas it considered to be a priority (Keating, 2007, p. 32).
Upon review of Craegmoor's reward system its board made the decision to concentrate on improving reward and recognition in a more strategic way adding value to both employees and the organization. The three key areas identified by the review of Craegmoor's reward system were: management development; staff training; and recognition. In developing its managers and training staff Craegmoor' goal is to provide each individual with the tools needed to do their jobs successfully and in the end reward individuals who role modeled organizational goals and values with its new 'Shining star award (Keating, 2007, p. 33).
The success of Craegmoor's newly remodeled rewards program was attributed to successful interoffice communication of the program, which included an email address, area briefings, submitted articles in the company magazine, as well as local and national press, and held an awards ceremony that recognized all nominees as well as the winner, which successfully communicated the value of its employees to the organization and promoted the organization as 'A great place to work' (Keating, 2007, p.
Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.
Overall, the score of the article is a 95 out of a 100 because the author, Carol Patton was able to lure me into reading her entire piece. Additionally, after reading the article, I felt that I gained a bit of knowledge on the importance of reward programs and how it should be a “must have” in the work environment.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
Many of Harrah’s employees deemed the goals set by Winn’s current incentive program to be unrealistic; on the other hand, others felt a sense of entitlement for bonuses. Therefore, Winn’s job is to provide a recommendation to Gary Loveman, on how to motivate and get employees energized. In order to motivate the employees, Winn had implemented an incentive pay plan to rewards Harrah’s employees in all of its properties for improving customer service. The company’s purpose for incentive program was to implant a competitive mindset in its employees as well as to show the employees that they are core of the...
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
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.
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).
Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.
In any organization, sometimes, monetary schemes doesnot get people involve to pursue work in a certain way, rather it demoralize and threatens the self-esteem of employees. According to Meyer (1975), “the basis for most of the problems with merit pay plans is that most people think their own performance is above average”. The amount may ...
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
Reward systems in the work place are not a new idea in the workplace, but they are the key to having happy employees and happy employees mean better output. Reward systems are systems used by companies where employees who achieve particular results are paid more or get other advantages. Some employers offer pay as incentives, while others offer benefits, some use a combination of both types. Employees within a company want recognition for the time and effort that they have put into a task required of their job. The use of reward systems not only enhances the company but it gives the employee a feeling of personal connection and investment into the company. Building a reward system can be a great asset to the company, by allowing the employees to feel that they are a part of the company. Reward systems are an important tool and key concept to managing an organization effectively.
Singh and Loncar utilized information from two hundred registered nurses who are union members to gain insight upon the changes nursing and hospital management should make to reduce turnover among the nursing staff and gain the maximum benefit from their employee investment. Employees who become disproportionally dissatisfied with their employment fail to strive for the best possible output and instead perform to the bare minimum of standards. This may cause failure to meet service standards, leading to customer dissatisfaction.
Job satisfaction represents one of the most complex areas facing today’s managers when it comes to managing their employees. Many studies have demonstrated an unusually large impact on the job satisfaction on the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business organizations. There is a considerable impact of the employees’ perceptions for the nature of his work and the level of overall job satisfaction. Financial compensation