Incentive Incentives For Reward High Performance And Motivate Workers On An Individual And Group Basis

Incentive Incentives For Reward High Performance And Motivate Workers On An Individual And Group Basis

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3.0 The HIS Current Incentive Scheme
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.
3.1 Key Weaknesses with the Incentive Scheme in terms of Motivation
The Sales Division’ performance is dissatisfactory because it lacks commitment and the directors are unhappy about it. Clients have been complaining about being sold expensive policies only to discover later that they were not as extensive as they were led to believe. These actions illustrates de-motivated consultants. The Efficiency Theory of Motivation postulates that individuals will expend effort if they anticipate the effort to lead to performance and the performance will get a reward (DuBrin 2008, 389). The lack of commitment and poor performance from the Sales Division shows that they are not receiving any form of incentive apart from the company cars they are provided with to perfor...

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...reward systems indoctrinate a culture of high performance by showcasing that performance is rewarded. The Expectancy Theory and Reinforcement Theory both indicate that behaviour which is rewarded has a high likelihood of being repeated. Therefore, organisations can apply different incentives such as financial, non-financial, performance-based incentive, recognition, promotions or salary increment to incentivise its employees. When an organisations considers setting a pay grade or increasing employees’ salaries these should be done in accordance with the labour market. The base payment and salary increment should be close to thee wage equilibrium to avoid setting the payment to high or too low. Lastly, the company should allocate a budget related to the cost of incentives. The organisation should consider motivating its employees are form of investment.

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