Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Effective reward management
Employee engagement theory literature review
Employee engagement theory literature review
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Effective reward management
1. ALL PEOPLE ARE MOTIVATED. Some people are like water in a faucet. They have the motivation; all you have to provide is the opportunity. The water is already motivated to flow. But it doesn't have the opportunity until you open the tap. Others are like mountain streams, which flow swiftly but follow their own channels. People, too, may move energetically, but toward their own goals. We in management should make it worth their while to channel their motivations toward the results management is seeking. 2. PEOPLE DO THINGS FOR THEIR REASONS; NOT FOR YOURS OR MINE. We in management have to show employees what's in it for them when they follow behaviours that benefit the company. We can show them by using rewards and recognition, appealing to their sense of pride and achievement. 3. PEOPLE CHANGE BECAUSE OF PAIN. When the pain of staying the same becomes greater than the pain of changing, people will change. For example, Americans didn't start buying smaller, fuel-efficient automobiles until the pain of high gasoline prices became greater than the pain of switching to less roomy and less powerful cars. 4. THE KEY TO EFFECTIVE COMMUNICATION IS IDENTIFICATION. When something becomes personal, it becomes important. When our clients or our employees begin to identify with who we are and what we are, good things begin to happen. Large corporations have discovered that. Prudential, for example, knows that its customers want to buy security. So it doesn't just sell insurance; it markets peace of mind by inviting all of us to buy " a piece of the rock." Kodak doesn't sell film; it invites its customers to " trust your memories to Kodak ." AT&T doesn't tell us to make long-distance calls. It asks us to "reach out and touch someone." In dealing with employees, it isn't enough to appeal to them on the basis of loyalty to the company. They need personal reasons for showing this loyalty. Whether we're instituting a new educational program or undergoing a total restructuring, we can get our employees on board more readily if we show them how the change will affect them for the better. When my company sets out to lead corporate teams in developing their human-relations skills, we don't tell them what we're going to do for the company. We talk about what we're going to do for the individual. For example, in the introduction to one of our manuals, we tell supervisors: "We've designed this complete educational system to help YOU master the skills of supervisory management and enjoy the rewards of leadership and career enhancement.
To be in a position to motivate people, it is key to understand what actually motivates them in
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.
Rewards: Everyone loves to be rewarded for doing something right, employees always feel happy and secured when their leaders praised them. The management should publicly praise the employees or departments that adhere to the code, and encourage the workers to continue the good behavior. When possible, leaders can share some of the money saved by avoiding fraud and litigations with the employees.
People vary not only in their capability to do but also in their “volition to do”, or motivation. The motivation of people relies on the forces of their motives and these motives are sometimes set as needs, wants, drives, and impulses within the person. Motives are directed toward goals, which may be aware or subconscious; therefore motives are the “reasons” of behavior.
This kind of uncertainty always puts employees at risk. Their knowledge and skills might be out of date; their valued work space, or social relationships might be removed and disrupted. Therefore, people resist change out of worry that they cannot adjust to the new work requirements or they will produce unknown costs. Issues such as “fear of the unknown” and “the inability to see the need for change” are common in resistance to change research (Hickins, 1998; Wienbach, 1994). For instance, if change had been poorly implemented during the past and employees have been subject to broken agreements, unfair treatment and poor management decision making, it is unlikely that trust damaged by such actions will be easily restored (Dent and Goldberg, 1999; Ford et al., 2008; Piderit, 2000). Ultimately, employees also would feel bad towards
Will facilitate the employees to get a better understanding of the working of the company.
"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.
Fear is usually the only thing stopping a person from changing. Whether it's fear of ridicule or judgment (usually from well meaning relatives who say things like, "Oh, what a nice idea, but you've never been much good at that sort of thing, dear"), or fear of failure (Why leave your boring steady job to start a business that might leave you bankrupt?), or simple fear of change itself (Things might be hard now, but at least you've learned to cope with this problem... a new problem would require painful adaptation.), people are afraid of achieving the very things they swear they want.
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.
Loyal employees improve the effectiveness of the organization and benefit themselves in the process as the organization improves. Loyalty also contributes by giving an organization a sense of community, which in turn fosters more loyalty. Arguments against loyalty include that it puts the employee in a vulnerable position, especially considering the frequency of corporate downsizing and restructuring. Additionally, employees must realize that businesses are not human entities and exist for the sole reason to make a profit. Employees must continue to think critically, even as they are loyal to an organization.
Reward and recognition has to be promoted for small and large achievements. An effective reward’s program keeps employees engaged, dedicated, and committed to the organization.
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
When it is discovered that a worker can fulfill the requirements of their job, but are experiencing shortcomings in doing so, many times it is believed that worker motivation may be the root of the problem (Laird 95). What, though, is work motivation? According to Laird (2006), “motivation is a fundamental component of performance “ and “is the reason that someone chooses to do some things and chooses not to do others”. In other words, work motivation is what energizes workers to the level of output required to fulfill a task, directs their energy towards the objectives that they need to accomplish, and sustains that level of effort over a period of time (Steers et al., 2004). In essence, worker motivation is what gets the job done. Employee motivation has always been a central problem in the workplace, and, as an individual in a supervisory position, it becomes ones 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...
While money is important to employees, what tends to motivate them to perform at high levels is the thoughtful, personal kind of recognition. that signifies true appreciation for a job well done. "- Expert Magazine Today, employers will gain more respect from their employees if they treat them fairly and give them credit where credit is earned. The examples that I have uncovered conclude the need for employee motivation. A manager must reveal the importance of their employees.
Employee performance defines the individual performance and behavior. It is essential to understand that performance is not merely a tasks and work need to be done to receive bonus or pay increase. Main objective is to enhance the skills set of an individual while helping the business performance (Baker, 1999).