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The effects of motivational incentives on employee performance
Providing employee benefits
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Individual Factors- Empowerment, Recognition and Rewards, and Career Support are respective of individual employee. These incentives are based on employee participation and involvement in response to organizational benefits. The common denominator is that the employee has the power to determine to what degree they can feel empowered to reap the benefits that the organization offers to the employee as it relates to reward programs and to career opportunities.
Empowerment
Huang, (2012) “The author expresses that psychological empowerment is associated with four cognitions: meaning, competence, self-determination and impact, and he indicates through research that psychological empowerment is link to improve job performance and morale.”
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Research bears that rewards increase motivation, but they are sustained when both intrinsic and external needs are being fulfilled. Intrinsic rewards are motivated by factors such as pride, self- actualization and ownership fueling a drive to grow and develop and conversely extrinsic rewards include pay raises, promotions, punishment, criticism or withholding pay. When organizations intentionally reward desired behaviors, they are virtually guaranteeing that the employees will fulfill and meet organizational goals that are aligned with the organization’s mission and vision. Studies have shown that intrinsic rewards motivate and increase job satisfaction in upper management positions and extrinsic rewards appeal more to individuals in low level positions. Research also supports that reward programs increases job commitment and contributes towards reducing turnover. In order for both intrinsic and extrinsic rewards to be affected, they will need to be reviewed frequently throughout the employee’s tenure with the organization for
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.
The concept of empowering within an organization is vital to its survival. Within my organization I would say that empowering would be at three. This is more than likely a temporary situation, as we are experiencing dramatic change and uncertainty during the merger and restructuring. After the dust settles, and a sense of normalcy returns, I believe as an organization, we will be once again at a level four. Creating a sense of ownership and voice, one needs to feel autonomous, valued, and in control of their surroundings (Keys, 2009). In a world of continued chaos and change, the strongest and lasting ideas most often come from the ground up (Laureate Education, 2010a). It is the clinical staff and future leaders that are the foundation of an organization. Through transformational leadership we support and encourage the followers to think outside the box, to exceed the standards, and to work collectively to achieve a common goal (Grossman & Valiga, 2009b). Leaders need to encourage staff to become active participants within their surroundings, self empowerment, and to be accountable. This is achieved by actively participating on com...
Empowerment is commonly confused with incentivizing employees. In many cases, there are no consequences for employee empowerment gone wrong, but some actually have severe consequences for the business. A recent example of this phenomenon is the Wells Fargo fiasco. Wells Fargo employees were incentivized in a way that made them behave unethically to meet standards and gain rewards. This skill application, will discuss Wells Fargo could have used other methods of empowering and engaging employees, which probably would have had a less harmful effect on their business and how they should act in the future.
From the psychological perspective of its relationship with leadership style, the concept of job satisfaction includes multi-dimensional responses to one’s job, and that such responses have cognitive (evaluative), affective (or emotional), and behavioral components (Judge & Klinger, 2003). Weiss has also argued that job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behavior (Weiss, 2002). This concept of job satisfaction suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors. The success of any organization depends greatly on the commitment and hard work on the part of their employees. Because of that, job satisfaction has been used as a tool to attract and retain the best employees within the
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.
Intrinsic rewards are not patterned financial rewards are associated with the requirement for employees to achieve greater success , recognition, a sense of responsibility , influence and development of other individuals. The requirements of the above is a strong motivator and contrast to the one . Each employee has different needs and desires . Rate a tremendous appreciation and gratitude is enough to inspire us all because of the appreciation of the value of giving someone touches his soul and give vigor to keep trying. Appreciate or appreciated regardless of age or where only a thousand meanings. Skinner ( 1969 ) reveals that the reward is a reinforcer . Reinforcing Here the meaning is interrelated aspects to the values that influence an individual's needs . However , Wether states that reward is what an individual received in return for a given job . It is the responsibility of an organization or institution to provide compensation and benefits to employees or students commensurate with a workforce that has been poured . The importance of rewards and benefits are indeed undeniable. If the employee or student is not satisfied with the compensation and benefits provided , then this will result in the existence of such problems as absenteeism , job rotation rate employing high , declining productivity and not serious in doing work .
For a company to maintain an innovative, creative, and adaptive edge of the competition, the organization needs to also focus on its leadership. A good leader can influence his or her subordinates to accomplish nearly any goal. Leadership traits can be sought after during the hiring process, however, they may not encompass all aspects of what is considered to be a good leader. Looking for all of the ideal leadership traits while hiring can also be time consuming and exhausting for a company.
In addition, empowerment is a factor that can motivate others to enhance 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 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. Studies show that majority of individuals prefer professions that they’ll enjoy, while some end up in their profession due to pressure from society.
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...
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
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).
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
Employee empowerment can be a powerful tool. The leadership style can increase efficiency and effectiveness inside an organization. Empowerment can also increase productivity and allow managers more tim...
There is considerable debate over merit pay and the effect it has on employees within an organization. Psychologists believe merit pay is related to the incentive theory of psychology; people respond to rewards and with the proper motivation, it increases performance (Cherry). Employers consider merit pay an effective tool and a form of competition strategy for motivating employees to achieve positive performance outcomes. Many employers ignore the fact that incentive plans may motivate some individuals while others have high work ethics and do not need motivation. The intent of this paper is to discuss merit pay used by companies, the motivational factors on employees to reach high achievement, and the challenges that employees face due
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.