It is universally acknowledged that remuneration is the key to drive the employees to be more productivity, enhance job satisfaction as well as the direction that determines the organizational behaviour of one. In the early 1900s, Taylor (1903) suggested that financial incentives were significant in improving efficiency of workers. However, the role of money has been revealed that it is not the sole factor to improve worker performance, while other factors need to be considered, as such human relations and social networks in the workplace, it is evident that these have become more important nowadays. Motivation defined by Kreitner (1995) is the process that gives behaviour purpose and direction. It is also defined as psychological drives which
According to the article, the authors stated that managers who have strong power of needs are more successful than those with lower power needs (Wagner & Swanson 1979, p. 66). ‘McClelland and Burnham identify two types of power managers: those who seek personal power and those who seek institutional power’ (Lyden 1976, p. 201). However, manager who seek for institutional power are more successful as they can create favorable condition at work. Wagner and Swanson (1979, p. 66) attributes the success of higher power needs people to their ability to create a greater sense of responsibility and team spirit in their organizations. This will give a clear picture for the organization on which of the employees that are suitable to be promoted and become a manager.
Under gain sharing pay programs, both the employer and the employee benefit from increased productivity. Therefore, gain sharing has often been referred to as a win-win pay program since it is an incentive strategy that ties pay to productivity. Gain sharing is a type of incentive plan designed to increase productivity by linking pay directly to specific improvements in a company’s performance. Gain sharing is used primarily when quantitative levels of production are important measures of business success. Gains are shared with unit/department employees on a monthly, quarterly, semiannual or annual basis according to some predetermined formula calculated on the value of gains of production over labor and other costs.
The two main ways to focus on an improvement process is result focused and process focused. Performance can be considered improved if the time spent on a product or service is reduced. Management support must increase when addressing performance improvement programs with time spent on improvement. When management support is increased, employee motivation is heightened. If the employee's efforts are rewarded quickly or if the positive results of the improvement comes quickly, then employee motivation if further heightened.
Employee participation can and does raise productivity. The most appropriate form will vary from company to company but participation works only when both parties want it to work. The solution to America’s pathetic productivity growth isn’t necessarily more capital spending (Lewis & Renn, 1992). People tend to accomplish what they decide they want to accomplish. Ideas, changes, suggestions and recommendations that are generated by the people who implement them stand a much greater chance of being successfully implemented.
Behavioral principles should therefore be set up and should be those that have bee agreed upon by both them management and their subjects. Some of the benefits that derive from the efficient use of organization behavior within an organization are higher productivity, lower rates of rejected production, and lower level turnover. In other words, functional behavioral units within organizations have the power and capacity to harness the varied systems within the organization into one meaningful and functional whole. The kind of behavior explained is the one modeled on the High Performance Paradigm (HPP) (Gibson & Konopaske, 2003). Arguably, High Performance Paradigms are designed to provide higher performance levels as compared to the traditional forms of behavior.
The assumption was that staff would work more productively if management offered intrinsic rewards (motivators in Herzberg's terms as well as extrinsic ones (Herzberg's hygiene factors), leading to ideas about job enrichment. (Boddy 2010 page 471). The John Lewis Partnership has changed over the past century, owing a proportion of success to it... ... middle of paper ... ... increasing levels of ability should be given increasing levels of responsibility. (Boddy page 464). Herzberg suggest that organisations can utilise three important methods to increase the motivational factors which are job enlargement, job enrichment and job rotation.
Therefore, it may affect the employee job satisfaction negatively. (Wadhwa, Verghese,&Wadhwa, 2011). The previous studies mention that the internal quality of a working environment contributes most to the employee satisfaction. Internal quality refers to that feelings, benefits and pay that the employee has towards the job. (Heskett,1997).
“Business productivity is dependent on employee job satisfaction”. When an employee feels satisfied, secure and trust the employer, they work harder which will enhance the business productivity (Philip, 1958). Moreover, when the employee feels respected, admired, and appreciated by their employers, they will produce productive work which will generate high profit and revenue and hence less turnover (Kalim, Syed & Muahmmad,
According to Chaneta (2014), job evaluation is the process of analyzing and assessing the relative worth of various jobs in an organization for the purpose of comparison and pay grading, and based on qualifications and skills required for a range of jobs. In other words, it forms the basis for pay and benefits negotiation. It helps to compensate employees accurately based on their job grades or values, and hence avoid issues of inequity and indifference at the workplace. To ensure effective job evaluation process, market-driven and job worth systems are largely used. While market-driven system is determined by the existing pay grade or structure in the opened market based on workforce demand and availability for particular positions, job-worth system depends on the value of the job or position to the organization.