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Relationship between incentives and employee performance
Compensation and benefits its impact on employees motivation
Research study on factors affecting employee productivity
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Abstract
This research paper will focus on whether there is any relationship between employee’s productivity motivation in the workplace, does the productivity of an employee increases when they are appraised by acknowledgement and treatment or does an employee become more efficient in the workplace because of monetary compensation? This paper will help understand where does the motivation of an employee derive from and whether employers should be wanting to pay more attention to the way that they direct their employees, we will find out from this research paper if employees are more productive and efficient when they are compensated and when they are recognized for their work and dedication or if there are just some employees that no matter
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An employee’s productivity and motivation derives from many different aspects. Some individuals have a higher productivity in the work place simply because they are motivated by the place itself, probably they feel comfortable in the place of work or they are treated with the upmost respect and love their jobs. Others in the other hand are more influenced by the liquid compensation, these will perform a better role and become more productive when there is more money involved. In this research paper we will learn whether employees are motivated by appraisals or by money, I will research if an employee works harder when there is a bonus or a raise at hand, or if the dedication and the hard work that they bring into the company is because they love what they do and they just need to be recognized, perhaps they just need the push and the motivation from their employers to become more …show more content…
Many of these individuals have more on their plate than their own boss and feel that they deserve more compensation which in many workplaces they do not obtain, this causes the employee to disengage and not perform at their potential. This creates underperformance and high turnover in the workplace. Many individuals work hard and at the end of the week they are not able to cover all their expenses with the pay they receive, therefore these people tend to relocate to another place where they can perform the same duties but at a higher rate, and in this place they will be motivated to be more
The plan paid out bonuses regularly along with paying a percentage of the labor savings each month. Which motivated all of the employees to increase their morale and increase their productivity. However, the only misleading part about the Scanlon plan was that the employees began to believe that the bonus was part of their regular paycheck, instead of relating the bonus with their own improved efforts they put into the company. Therefore, expectancy theory has been a dominant model in explaining how people make decisions regarding effort expenditure at a workplace; the conventional approach while applying the theory involved in multiplying the outcomes such as pay raise or promotion by expectancy of an outcome that will occur if a person works hard. (Biberman, G., Baril, G. L., & Kopelman, R. E., 1986, p.2). Furthermore, the results in the expectancy theory would be obtained by a motivational force score that would possibly predict work effort and job performance across the employees. So, it is ideal that the employees would respond in a positive manner to the following three essentials for them to employ extra effort and performance on a specific job. The three essentials are the following: expectancy, instrumentality and valence are linked to motivation. If an employee feels valued and rewarded for the efforts they’ve
There are people out there in the workforce that believe they are obligated to do their best at their job simply because that is what is expected from all of us as humans. On the other hand, there are those out there that want to only do as much as they can get away with doing. No matter which one of these employees you are or are working with companies and employer's need to understand the concept of motivation.
People spend an extensive part of their lives at work, so it is not astonishing that they expect to be rewarded and fulfilled with the job that they do. Motivation is concerned with why people do things as well as what drives them to act in a particular way. Understanding what motivates an individual is important in a workplace. Motivated employees are happier at work. They get more satisfaction from their work, they are absent less frequently, and work with more enthusiasm. This encourages them to contribute more, hence increasing the productivity in the organization. Unmotivated workers will not be as contented with their position in the work environment as motivated workers. The job might not be as important for them which may lead to a poor performance, which will lead to less efficiency and hence to poor productivity.
“Motivation is the influence or drive that causes us to behave in a specific manner and has been described as consisting of energy, direction, and sustainability” (Kroth, 2007). At the workplace, employees who are motivated are more engaged in their work and committed about working for the organization. High levels of motivation and workforce engagement can be translated to better performance, productivity and job satisfaction and direct impact on an organization’s success and thrive. According to Jim Harter, a Gallup research scientist, “engagement or the lack of it, has substantial implications for how well businesses organizations achieve their goals” (DuBrin, 2013). In his online blog, Nick Stein from SalesForce.com outlined the results of a recent research which concluded that seventy-eight percent of employees cited recognition as the main motivating factor in their career. Sixty-nine percent of employees said they would work harder if they were better recognized. Fifty-two percent of employees were not satisfied with the amount of recognition they
According to Herzberg’s two factor theory, there exists ‘hygiene factors’, extrinsic factors of a workplace that lead to either dissatisfaction or non-dissatisfaction, but not motivation. As well, there are motivation factors, intrinsically rewarding factors of a workplace that “[emphasize] factors associated with the work itself or with outcomes directly derived from it”. In raising the salary of his employees, Dan hoped that the extrinsic reward of a pay increase would lead to intrinsically beneficial opportunities for personal growth for his employees. The opportunities for personal growth should in turn further motivate employees in their job. When Dan chose to raise the salaries of his employees, he was “influenced by research showing
Research has shown that motivation in an employee is an important factor which determines his performance. Motivation is the “driving force within individuals” (Mullins, 2007, p. 285). It is the concerned with finding out the reasons which shape and direct the behaviour of the individuals. The people act to achieve something so that they can satisfy some needs (Gitman and Daniel, 2008). It is important for the manager to understand this motivation of individual employees in order to inspire them and devise an appropriate set of incentives and rewards which would satisfy the needs that they have individually (Kerr, 2003). Once these needs are expected to be met in return for some specific behaviour or action, they would work more diligently to have that behaviour in them and to achieve that objective (Meyer and Hersovitch, 2001). Since it would lead to early and fuller achievement of the company objectives as the individual would work more diligently, it would lead to better organizational performance (Wiley, 1997).
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.
This happens when money is just their only motivation or if they’re trying to receive a promotion. Others try to increase their productivity due to just the satisfaction they obtain from their work socially. Another reason may also come from an employee getting a good, decent salary. This not only improves the job satisfaction, but gives the member of staff understanding of the fact that they get fair payment for their labors. “[But] if an employee does not get satisfaction in their work, they may seek for satisfaction in other work unrelated areas. He or she may also be content with work as it relates with those work unrelated areas. Job dissatisfaction may also cause an employee to quit” (Robbins). In addition, empowerment is a factor that can motivate others into enhancing their work productivity. Human empowerment leads to the job satisfaction. When management gives an employee the opportunity to work based off of their own standards, this amounts up to those in the company, resulting in the job productivity increasing. “An example of a way to motivate employees is the management offering them opportunities for promotions and pay rise negotiations. This will encourage job productivity since employees will want to receive [these] rewards” (Jackson,
...n organisations of lack of job satisfaction and productivity amongst unmotivated employees, and related the problem to the risk of turnover. Conflict, absenteeism and stress were identified as major causes of loss of job satisfaction and productivity, potentially increasing the the loss of staff. The solution proposed was to implement additional training and performance pay. It was argued that training in the workplace improves an employee’s sense of worth and self-esteem, by increasing their skills and thus contribution to work efforts. This raises productivity, and in addition improves job satisfaction. Performance pay was advocated as a means of developing the organisation to support motivated and capable employees. Self-disciplined workers would receive recognition for output, improving job satisfaction; as well as financial incentive, keeping productivity high.
The culture of appreciating employees for their hard work and achievements by incentives shows how the organization values their employees. Lincoln believed “Status is of great importance in all human relationships. The greatest incentive that money has, usually, is that is it a symbol of success... The resulting status is the real incentive... Money alone can be an incentive to the miser only. There must be complete honesty and understanding between the hourly worker and management if high efficiency is to be obtained”. This shows how harmoniously the labor and management have to work together to produce
Employee motivation has always been a central problem in the workplace, and, as an individual in a supervisory position, it becomes one’s duty to understand and institute systems that ensure the proper motivation of your subordinates. Proper motivation of employees can ensure high productivity and successful workflow, while low worker motivation can result in absenteeism, decreased productivity rates, and turnover. A large body of research has been produced regarding motivation, and much of this research is applicable to the workplace. Due to the nature of man, motivation varies from individual to individual, and, because of this, there is no one system that is the best for ensuring worker motivation in every organizational situation, and, as a product, many theories have been created to outline what drives people to satisfactorily complete their work tasks. Throughout the course of this document, the three main types of these motivational theories will be outlined and examples of each, as well as how these theories can be used to further strengthen and sustain worker motivation....
Motivation is the process of getting someone to act on a particular situation. According to (Adelhardt, S, K. 2015, December 2) lack of motivation in the workplace is the most problematic subject for all managers, because it leads to decreasing productivity, performance and yet it increases the chances of employee resignation. Many employers suppose that managers these days are struggling to motivate their employees due to lack of significantly vital experience as well as knowledge in the employee engagement developing process. One of the successful strategies that managers can use to increase employee inspiration is by offering an attractive remuneration and benefits to their employees. Remuneration and benefits such as an extrinsic bonus
Ability in in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may even know where to start. As a guideline seven strategies for motivation.
It has been observed that motivated and satisfied employees have directly relate with the business performance, profitability and eventually, its stability (Shemiah, 2009). However, dissatisfied and less committed employees have a negative impacts on the performance and profitability of an organization (McKinley, Sanchez, & Schick, 1995). It should be taken into account that disengaged and less efficient employees cost the organization thousands while losing the productivity (Hislop,
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