The Negative Effects Of Financial Employees

1250 Words3 Pages
bulb-icon

Recommended: Case study analysis of hr

Goodman’s last and final point is that employers should “focus on the means as well as the end” (Goodman 2013). This means that employers should always be thinking about their end goals. Goodman says that all incentives that are used to motivate employees to do smaller tasks, should also lead employees to the overall progress of the company (Goodman 2013). According to Goodman, employees should have more than just one goal to accomplish (Goodman 2013). Goodman says that if companies only provide one goal, such as a bonus, then employees will take “shortcuts” (Goodman 2013). Goodman says that instead, employers should have employees striving to accomplish bigger and overall goals of the company (Goodman 2013). Goodman continues by saying that …show more content…

The first way is to make sure that the “financial incentives are used primarily for tasks that are uninteresting to most employees”(Grant & Singh, 2011). This means that the assignments given to the employees should be assignments that employees normally do not like doing or normally do not do. The second way suggested by Grant and Singh is to make sure that the financial incentive is “delivered in small sizes so that they do not undermine intrinsic motivation” (Grant & Singh, 2011). Rewards given in the form of money should never trump the inner motivation of the employee. Financial rewards are not employee’s “why” and should not be treated as such. Financial rewards according to Grant and Singh, should only be given in small amounts (Grant & Singh, 2011). The last thing Grant and Singh (2011) suggest employers do is make sure that the financial reward is “supplemented with major initiatives to support intrinsic motivation.” Meaning instead of offering the employees a financial reward, sometimes it is better to provide employees with incentives that help them reach their own personal goals. Sometimes it is better to give employees incentives that empower them, instead of financially benefit

Show More
Related

  • Engstrom Auto Mirror Case Study Summary

    1153 Words  | 3 Pages

    It 's important for employees to know that their suggestions are being listened to, and should be given ways to improve themselves accordingly. This theory expresses that when a lower need is fulfilled, it 's no longer a strong motivator and consequently the interest in the following higher need gets to be overwhelming and the individual 's consideration is turned towards fulfilling this higher

    Read More

  • The Importance Of Motivation At USAA

    1042 Words  | 3 Pages

    When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee

    Read More

  • Summary Of 'Co' By Steven Cohen

    1220 Words  | 3 Pages

    Having incentives for meeting goals can encourage and motivate staff to meet necessary

    Read More

  • Movie Analysis: Damaged Care Organizations

    1242 Words  | 3 Pages

    Peeno’s personal motivation, but also through the broader review of organizational behavior and the interface between the organization and the individual human behavior as it applies to generalized motivation. Some organizations employ different theories in order to motivate its employees. Humana, in an effort to incentivize its medical reviewers, utilized the House’s Path Goal Theory, which is based off of an expectancy motivation theory (p. 180). Ultimately, people will be motivated to get the organization’s desired outcomes if a reward is involved. In order to look out for the bottom line and stay out of the red, Dr. Scarwood utilized legitimate power, which derived primarily from authority (p. 139). In order to improve team effectiveness, Dr. Scarwood used his power to demand that all of the key players would meet weekly to review the individual denial rates and discuss the results as a team (p. 119). This data is referred to as objective outcomes by Johnson. Evaluating the data openly with the group would improve the numbers and improve employee satisfaction through review of the achievements made throughout the week (p. 90). To improve that data, Dr. Scarwood added an extra paid incentive to do the job

    Read More

  • Applying Theory Y To Become a Better Leader

    1123 Words  | 3 Pages

    Theory Y was formulated by Douglas McGregor. The Theory assumes that “work is a natural activity, like play or rest” (Kreitner, & Kinicki, 2010, p. 9). The theory further assumes that “people are capable of self-direction and self-control if they are committed to objectives” (Kreitner, & Kinicki, 2010, p.9). According to this theory, employees shall be dedicated to their goals only if incentives are availed to them. These incentives and/ or rewards ought to address higher needs. A perfect example of a higher need is self-fulfillment. This state of affairs makes people to search for responsibility. The theory further adds that scores of persons might handle a particular task and/ or responsibility since innovation and resourcefulness are ordinary within the masses (Ouchi, 1991, p.37).

    Read More

  • Theory Of Goal Setting

    1044 Words  | 3 Pages

    In addition to feedback, goals have been found to be more effective when they are tied to employee evaluations. The results of employee evaluations typically carry great weight when it comes to raises, bonuses, and potential advancement. Tying these types of rewards to successful goal completion also improves performance and increases goal commitment among employees (House, 1971). Incorporating deadlines to specific goals is also attributed to elevated performance levels. The motivation levels of the employee increase to meet goals within set deadlines and receive positive feedback (Lunenburg, 2011). As organizations focus on employee satisfaction and motivation, goal setting will remain an important aspect of management practices. In today’s economy, organizations are competing for top talent and ensuring employee satisfaction among job tasks is an important piece of talent retention.

    Read More

  • Engstrom Auto Mirror Case Study

    722 Words  | 2 Pages

    The plan paid out bonuses regularly along with paying a percentage of the labor savings each month. Which motivated all of the employees to increase their morale and increase their productivity. However, the only misleading part about the Scanlon plan was that the employees began to believe that the bonus was part of their regular paycheck, instead of relating the bonus with their own improved efforts they put into the company. Therefore, expectancy theory has been a dominant model in explaining how people make decisions regarding effort expenditure at a workplace; the conventional approach while applying the theory involved in multiplying the outcomes such as pay raise or promotion by expectancy of an outcome that will occur if a person works hard. (Biberman, G., Baril, G. L., & Kopelman, R. E., 1986, p.2). Furthermore, the results in the expectancy theory would be obtained by a motivational force score that would possibly predict work effort and job performance across the employees. So, it is ideal that the employees would respond in a positive manner to the following three essentials for them to employ extra effort and performance on a specific job. The three essentials are the following: expectancy, instrumentality and valence are linked to motivation. If an employee feels valued and rewarded for the efforts they’ve

    Read More

  • The Value Of Performance-Related Pay

    1642 Words  | 4 Pages

    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...

    Read More

  • Goal Setting Theory Essay

    1245 Words  | 3 Pages

    The basic premises of the goal-setting theory is the relationship between how difficult and specific a goal is and people’s performance. We live in a goal-oriented society as people usually adhere to specific targets with a plan of action for guidance. Lack of accomplishment of goals leads to job dissatisfaction. Locke’s Goal-Setting Theory from 1968 has been a powerful way of motivating people and is often utilized in whole organizations to increase focus and productivity. The more specific and difficult goals are designed the more likely staff can achieve these goals as opposed to being too vague or easy goals. An organization should consider the five following principles of goal setting: clarity, goal difficulty, goal acceptance, goal specificity and feedback. Organizations that set clear and challenging goals and are open to honest feedback have a greater chance of achieving goals. According to Locke and Latham (2002), goal setting can be useful in predicting job satisfaction. Job satisfaction is an important attribute for employee productivity and commitment to the

    Read More

  • Harrah's Entertainment Case Analysis

    861 Words  | 2 Pages

    Many of Harrah’s employees deemed the goals set by Winn’s current incentive program to be unrealistic; on the other hand, others felt a sense of entitlement for bonuses. Therefore, Winn’s job is to provide a recommendation to Gary Loveman, on how to motivate and get employees energized. In order to motivate the employees, Winn had implemented an incentive pay plan to rewards Harrah’s employees in all of its properties for improving customer service. The company’s purpose for incentive program was to implant a competitive mindset in its employees as well as to show the employees that they are core of the...

    Read More

  • Employee Engagement And Disengagement

    1055 Words  | 3 Pages

    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

    Read More

  • Constrained Position Paper

    945 Words  | 2 Pages

    At the point when representatives see that exertion prompts execution and performance prompts wanted results, then the workers will hypothetically bring about higher inspiration to prompts better execution and results. (Organizational

    Read More

  • Motivation, Organizational Behavior and Performance

    525 Words  | 2 Pages

    It is important for manager to understand that what motivates the individuals. There are different kinds of motivation theories which reveal that individuals are motivated by different factors. For example there is extrinsic motivation and intrinsic motivation (Amabile, 1993). Extrinsic motivation refers to the motivation that one has for the extrinsic rewards such as pay, status, power, etc. Then there are intrinsic motivating factors such as the chance to exercise one’s skills, the opportunity to learn and personal development. Research suggests that various factors motivate employees in a different degree depending on their nature. It would therefore be important for the manager to understand that what are the motivating factors for individual employees and then provide them incentives accordingly so that they can work in a more productive fashion. Once the individuals work with greater excitement and vigour it would automatically lead to better performance.

    Read More

  • Reward System Essay

    729 Words  | 2 Pages

    Reward system policy often view from the organization’s perspective where the economic needs of the firms take precedence over the individual. Under this outline, costly reward system and limited reward system will be wasted or misapplied because they are not valued by employees. Organization will see that what is important is not whether a reward system program look great on the paper or considered a state of the art reward program, but is going to be measure by or not the employees wanted the reward and they are willing to work toward a desired result to receive it. Reward system with in organization begin with the understanding of the individual needs, values, and expectations. Within Organization that doing business

    Read More

  • Is Money Really an Effective Motivator?

    1057 Words  | 3 Pages

    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.

    Read More

More about The Negative Effects Of Financial Employees

Open Document