One of the advantages is that employees, by increasing their productivity and quality of work, assist with business growth and ultimately help themselves by gaining higher premiums (Coates, 1991). Kruse (1993) wrote, “profit sharing can motivate employees to work harder for increased profits, primarily through increase productivity,” and also “can aid economic stability and decrease unemployment” (p.2). Despite the distinctions, profit sharing is prone to weaknesses and ¬criticism. Coates (1991) notes that one of the disadvantages is problem finding a correlation between increased or decreased productivity and profit sharing gains (p. 20). Not only the top management may have a hard time measuring it but also an average worker may have a difficulty relating his work to his profit share earnings (Noe, Hollenback, Gerhart, Wright, p.558).
Motivation is the force that makes us do things, whether accomplishing personal goals or completing tasks at work. Most people are motivated as a result of their individual needs being satisfied, which gives them the inspiration to perform specific behaviors for which they receive rewards (Kinicki & Williams, 2011). These needs vary from person to person, as everybody has specific needs to be satisfied. When we consider factors that determine the motivation of employees, many of us think of a high salary. This answer is correct for the reason that some employees will be motivated by money, but mostly wrong for the reason that it does not satisfy other needs to a lasting degree (Bizhelp24, 2010).
Critically evaluate this statement: Managers who rely only on pay to motivate their employees to higher levels of job performance will always be disappointed n the results. Pay is one thing that causes many discrepancies within the work environment. Most employees continue to try and further themselves in work usually with the hope of better pay; fringe benefits i.e. company cars, pensions and so on. There are however, those who show “highly motivated behaviour where economic rewards are low.” This citation agrees with the above statement, however, throughout this essay I will sum up where pay can be seen as a good motivator and where extrinsic benefits fail.
There should be some way of connecting pay to job performance. The best way of doing this would be to award bonuses to those workers who are at the top of their class. This would not only motivate workers to do a good job, but also reward the employees that do succeed. TOP EXECUTIVES DESERVE THE MONEY THAT THEY MAKE INTRODUCTION It is a well-known fact that many people holding high positions in companies make an exorbitant amount of money. Some, however, say that they do not deserve the amount that they are paid.
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. 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 ... ... middle of paper ... ...ted Clemmer, Jim. "Weak Leaders Try to Use Money as a Motivator - The Clemmer Group.
Yet, many consumers would be very pleased with the decrease in price of fruits. Some workers of the market of fruits or related to this market would be fired due to the decrease in quantity supplied, causing a higher rate of unemployment. The government would gain popularity from the individuals who were better off with the price ceiling. (Tragakes, 89 and 90) The price floor works as price support for the vegetable farmers as their income too low, they will now get a higher price, produce more and increase their revenues. Workers also benefit from this situation as there is a need of more production, they are most likely to be employed.
Companies that employ individuals who are capable of multitasking benefit from these employees as the organization see’s a high degree of flexibility and responsiveness with a reduction in operational costs. Companies looking to cut waste in an environment where employees are already stretched thin by performing multiple duties and tasks beyond their job description could find its employees becoming even more overworked and see a larger degradation of performance due to understaffing in an effort to cut costs. These cost-cutting measures could actually do more harm than good to an organization.
Countries with low labor wages, benefits, and standards represent huge profitability for corporations who take advantage. However, these options that increase profitability also decrease social responsibility. Although, companies stand to gain a profit from this practice the long term communal effects of exploiting economic failure is long-lasting for the country.
Attrition is so important to keep down for a couple reasons; obviously cost is the main reason. Every time an employer loses and employee it is going to cost the company money. This cost is incurred mainly with just finding and training a replacement for the lost employee, but it is also incurred in loss of productivity that the employee would have increased had they originally remained. The ac... ... middle of paper ... ...rganization should make the employees feel that employees are most valuable for the organization. By enforcing appropriate HR practices and policies, organization can instigate this feeling amid their employees.” To me this shows that there is more to retaining employees than just money or benefits, as this explains the nature of the job and type of employees you have will really dictate to you and the company what type of programs or recognition you should be doing because it is right for your company and your employees.
Keeping good employees increases profits. Employee turnover is a direct drain on the bottom line. Another incentive for employee retention is the high cost of recruiting and replacing valued employees. In a low-unemployment market, employees are increasingly difficult to find. Many employers are trying to reduce employee turnover with quick fixes, gimmicks, games, and prizes that just don't work.