Workplace Motivation Driven by Incentives Every person has a motivating factor that makes them go to work. Some people go to work for the paycheck or the benefits, others go to work for the social aspect or experience, these are incentives. Incentives are the most common motivating factor for people to complete tasks. This is also called, work motivation. Work motivation is defined as “A force that drives people to behave in a way that energizes, directs, and sustains their work behavior” (Steers, R. M., Mowday, R. T., & Shapiro, D. L., 2004). In contrast to the benefits of incentives, incentives are commonly counterproductive because they undermine the intrinsic motivation of an individual, this is the overjustification effect. Motivation can be presented in two different ways, internally …show more content…
This form of reward is in the form of VIP access, giving the employees power, promotions, or offering trips or getaways. These types of rewards give the employers something to look forward to, it also gives them a new exciting opportunity. Privileges and rewarding events fall into the esteem need of Maslow’s Hierarchy of Needs. This form of reward also falls into the Herzberg’s Two-Factor Theory, relating to motivators. The reward acts as a motivator where it gives people reinforcement for a job well done and interesting work or responsibility. Rewards can have a positive influence on work motivation and performance. They contribute to fundamental human needs such as esteem or self-actualization, create a basis for communication amongst co-workers, and push employees to complete work related tasks. Rewards such as recognition, monetary payments, and privileges have many advantages and uses but also have some drawbacks. An example of a drawback of rewards is when the rewards reduces intrinsic motivation, this relates to the overjustification effect. Overjustification
All extrinsic rewards come from the outside of an individual, but the rewards vary in types. Kendra Cherry (2015) found “motivation can come from the outside, such as the motivation to win medals, receive financial rewards, and attract attention from the media” (p.1). The most common type of extrinsic incentive is financial, such as a salary increase or additional bonus. Some extrinsic rewards can be benefits or materials such as insurance or company vehicles. Also, an intangible extrinsic reward can have paid time off benefits. Some managers may reward an employee with social rewards such as prestige (status), recognition, or positive feedback. Other possible extrinsic rewards given to an employee consist of finer offices or marked parking spots. Although, the implementation of extrinsic rewards has its direct positive results, it contains some negatives as well. Ingram (2015) further explains, “Extrinsically motivated employees require closer supervision to keep their performance high, allowing managers to closely watch and guide employees while they work” (2). While one individual employee might not be bothered by the implementation of close supervision by their supervisor, a dissimilar employee might be. Other issues pertaining to drive extrinsic motivation include cost, short-term results, and experiencing a burn out. The cost of rewarding an employee with
Perkins, S.J. & White, G., 2011. Reward management: alternatives, consequences and contexts / Stephen J. Perkins and Geoff White., London: Chartered Institute of Personnel and Development.
Bratton and Gold (2003) describe a reward system as “The combination of extrinsic and intrinsic rewards delivered by the employer. It also consists of the incorporated policies, processes, performs and administrative processes for executing the system within the framework of the human resources (HR) strategy and the total organizational system”.
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
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.
Leaders can determine the allocation of valued incentives such as promotions, bonuses, raises, attractive work assignments, time off and compliments. The challenge presented by the use of reward power is that some of the rewards may have limited perceived value to the employee. A compliment of a financial payoff may not be a sufficient for an employee. Moreover the ethical conduct may not be observed by top leadership. Finally some of the rewards, such as salary increases or promotions, may be controlled by or more heavily influenced by, direct supervisors within the organization. If these supervisors do not share the same values as top leadership, employees are likely to be rewarded for behaviors using performance metrics more salient to the
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.
Motivation is the force that transforms and uplifts people to be productive and perform in their jobs. Maximizing employee’s motivation is a necessary and vital to successfully accomplish the organization’s targets and objectives. However, this is a considerable challenge to any organizations managers, due to the complexity of motivation and the fact that, there is no ready made solution or an answer to what motivates people to work well (Mullins,2002).
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.
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
Furthermore and in accordance (Cardon & Stevens, 2004) one of the most important tools used to attract, retain and motivate talents employees is an effective reward system. This organisation, for example, has introduced a reward system for best-performing employees this ranges from salary bonuses to gifts. This has help the organisation to employ very strong applicants and retain employees with core knowledge to compete in the world of
In this case, there was a need to perform a correlation that study that investigated the relationship between motivation and performance. This would assist many other organizations to become successful. Several factors had a great significance to the performance of employees. These included the level of skills each employee had and the willingness to take the roles assigned to them. More importantly, the study linked a tight rewards to employee motivation. Details of the study indicate that provision of rewards to the employees increased the willingness to work. In addition, this study stated that employee performance was a result of only motivation and skills possessed by employees. This study used different methods in a bid to achieve its set objective. In incorporated a documentary study, questionnaires and a survey. From the results of the study, it was concluded that motivational tools had a great impact on employee performance. Many employees have the skills but are not willing to engage all the skills top increase their performance. In order to utilize this skill full, an organization had only to motivate its employees. This was possible through the provision of rewards either directly or through the creation of reward systems to the
When creating a rewards system one needs to consider why they are rewarding the employee, do you reward employees for the daily aspects of the job, or the work that the employees have completed beyond the daily aspects? A good reward system will also encourage the employees to do more for the company, and show them that they are not forgotten when the company benefits. It is not always necessary for a company to use monetary compensation, but in some instances, a form of monetary compensation is preferred. If a company wants to compensate monetarily it can use bonuses, stock sharing, and salary increases but most companies prefer to use non-monetary rewards such as paid days off, extra vacation time, personal days, and benefits such as gym memberships. Organizations such as non-profit or human service agencies have to find ways to reward the employees without added expense, since the money donated to the organization is limited, a...
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.
Extrinsic rewards such as pay equity to employees can affect employee motivations because this will influence employee’s behaviour towards their job satisfaction in hospitality. The study of Ching, Hee, Liew & Loke (2014) stated that performance-pay can ensure the productivity and effectiveness of employees because their job satisfaction is higher. Employees are satisfied and trust that the pay is according to their job duties and working experiences. Employee always expects a fair return for what they contribute to their jobs. If an employee does not satisfy with their pay due to their work effort, their motivations to work will decrease. Vanessa (2012) said that pay is related with Maslow’s Motivation Theory. This is because pay can fulfil employee