...Motivation and Reward Systems Reward system is an organization’s most essential instrument for building and sustaining motivation in the workplace. A reward system is defined as the informal and formal processes by which performance of the members of the organization is identified, assessed, and rewarded. Obviously, rewards that are connected particularly to performance have the strongest effect on improving employee performance and motivation. Performance-based rewards fulfill numerous functions and objectives in organizations. The main principles comprise the correlation between motivation and rewards (Griffin & Moorhead, 2011). In particular, organizations would like their members to perform well and, consequently, have to motivate them to do so. When the reward system is related to greater performance, employees will most likely be driven to exert greater effort to get those rewards. When that happens, employee motivation becomes strongly tied to the organization’s goals. Proponents of behavioral sciences have long promoted the value of reward systems, the methods by which managers distribute rewards based on performance, tenure, or other aspects (Yukl, 2009). Obviously, reward systems are essential because employees accomplish the tasks they are rewarded for and poorly perform those which do not have any reward. However, before initiating organizational change, the reward system must be examined to identify whether it will positively or negatively contribute...
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...Motivation and Reward Systems Motivation and reward systems are two very important concepts in an organization that managers should understand. Employees that are positively motivated will have higher levels of productivity; whereas employees with lower levels of motivation and job satisfaction may produce less. “Motivation can be achieved through various means, including equality, positive reinforcement, discipline and punishment among others” (Smith, 2010). Managers should be aware of their employees’ needs in order to fulfill them. There are some motivational theories that can help managers identify needs and how to motivate their employees effectively. Some of these motivational theories are based on employee drives, others are based on employee needs, and others are based on behavior. However, the major source of motivation is reward systems. Employees can be rewarded in many ways; some include incentives that are linked with performance, wage incentives, profit sharing, gain sharing, and skill-base pay. Work motivation is defined by Newstrom (2011) as “the result of a set of internal and external forces that cause an employee to choose an appropriate course of action and engage in certain behaviors.” The motivation and the behavior are expected to be positive and towards achieving organizational goals; managers should be interested in three elements of the behavior: the direction, level of effort, and persistence of the behavior (Newstrom, 2011). To make and maintain...
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...deciding success or failure. Companies have motivation and reward systems in use though it is unlikely that two different companies can have the same type of motivation. When reward systems and motivation are in use, employees are likely to work more efficiently which can make other key staff members with perfect skills and high degrees of work performance to be attracted to that company. Reward system management refers to a framework of envisioning the formulation of various reward systems, which can boost a salesperson's motivation. Reward system and motivations are vital in company operational management. The motivation of employees is a psychological feature wherein employees are stimulated in order for them to behave in a given manner with the main goal of accomplishing some given organizational objectives. It is important that organizations motivate their employees so as to obtain the best from them. The level of motivation in the sales force needs to be higher to enable them to meet the sales aims efficiently. Central to motivation is offering the employees with what they need most from the work they are doing (Agarwal, 1998, p. 102). The more the manager can provide what the workers want, the more he or she should have expectations of obtaining what he or she wants, which includes service, quality, and productivity. A motivation practice and philosophy, which is positive leads to improved service, quality, and productivity. The motivation of employees leads to the gaining of...
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...IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION A QUANTITAVE STUDY OF GLOBAL COMPANIES Programme Code & Name: Session: Subject Code & Name: Assignment Title: Student’s Names & ID: o Nguyen Vu Minh An o Li Jia o Dai Hairong o Hue Shin Yen o Zhangshan o Daiwei Class Section: Lecturer: Submission Date: I13003385 I12002184 I12002129 I13003254 I12002130 I12002099 5A1 Ms. Yalini Easvaralingam 12th Aug, 2013 MBADI–Master of Business Administration May 2013 MGT6208 – Statistic and Decision Analysis Group Assignment 1 Group assignment MGT Table of Contents ABSTRACT ......................................................................................................................... 3 CHAPTER 1: INDTRODUCTION ....................................................................................... 3 1.1 Problem statement ........................................................................................................... 3 1.2 Research Objectives ........................................................................................................ 5 CHAPTER 2: LITERATURE REVIEW ............................................................................... 5 2.1 Employee motivation ...................................................................................................... 5 2.2 Reward management system ........................................................................................... 7 2.3 Effects of financial and non-financial reward system...
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...Evaluating Reward Systems and their Impact on2 EVALUATING REWARD SYSTEMS AND THEIR IMPACT ON PERFORMANCE Name Affiliation Date ChemLab supplies international is a company linked with worldwide leaders in laboratory and glassware industrial manufacturing. The business is devoted in providing various products and services of high quality from international sources that are recognized worldwide. These sources are for instance like fine chemical, specialty chemical and other associated industries. ChemLab international has been serving the world since 1998, its location is in Pakistan and it stand for foreign manufacturers. I am the human resource assistant at ChemLab supplies international and the company has been experiencing low employee turnover and high rate of employee resignation. The productivity is subsequently low and profit margins are not met. Preliminary problem statement Can the reward system be effective in improving performance and productivity in ChemLab Supplies International? It is clearly evident that the company employees are most certainly demotivated and that is why they absent themselves from work and a large number of them quit their jobs. A system to motivate these employees should be implemented to curb this problem. The employees are always giving reasons not to come to work and within no time the employee who has been giving reasons submits their resignation letter. A research has been conducted to find out why the employees absent themselves...
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...Introduction 2 1.1 Research question 2 1.2 Background 2 2.0 Motivation 2 2.1 Definition of Motivation 2 2.2 Theories of Motivation 3 3.0 Reward System in Organizations 3 4.0 Types of pay Scheme’s 4 4.1 Payment by Result 4 4.2 Skills-based pay 4 4.3 Profit sharing 4 4.4 Performance-related pay 5 5.0 Discussion 5 6.0 Empirical Study 6 6.1 Volvo Current Reward System 6 6.2 Employee and Mangers View of Reward system in Volvo 7 7.0 Empirical Study 2 7 8.0 Conclusion 7 9.0 References 8 10.0 Appendix Page 9 1.0 Introduction 1.1 Research question Today an organizations result is highly dependent on the employees work motivation. It therefore becomes important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right and adequate combination of immaterial and material rewards can boost up an employees work motivation and enhance their commitment to the company. The aim of this documentation is to investigate and analyze how well a reward system helps generate employee motivation. More specifically it aims, to conclude that a financial reward is not an effective implementation to increasing employee motivation 1.2 Background A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy, however, it might be challenging...
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...Executive Summary This assignment is study about the Organisation Studies issue which is Organisation Rewards and Employees’ Motivation. In order to further study the issue, an interview section was held in Bayview Hotel Georgetown Penang. The Front Office Manager was selected as the respondent. The interviewee has given a lot of useful and credible information when commenting the employees’ motivation during the interview section. Throughout the interview section, the Bayview employees’ motivation level has shown positive effect towards the organisation. Meanwhile, the organisation is developing the current rewards system which helps increase the employees’ job performance in near future. The study case has brought out an important issue which is the motivation level among the employees has occupied a very important position in an organisation. It will lead to a positive working environment and increase the revenue of the company as the company rewards them according to their needs. 1.0 Introduction Bayview Hotel Georgetown Penang which formerly known as City Bayview Hotel Penang Malaysia is one of the member of Bayview International Hotels & Resorts in worldwide. The Founder and Chairman of Oriental Holdings Berhad (OHB) and Boon Siew groups of companies in both Malaysia and Singapore, the late Tan Sri Loh Boon siew, purchased a land parcel in the year 1978. A 40-rooms property was built along Batu Ferringhi Beach in Penang and named as Bayview Motel...
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...E - MOTIVATION IN ORGANIZATIONS INTRODUCTION. Knowing how and why to motivate employees is an important managerial skill. THE NATURE OF MOTIVATION IN ORGANISATIONS. Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them. Motivation And Performance In Organizations. An employee's performance typically is influenced by motivation, ability, and the work environment. Some deficiencies can be addressed by providing training or altering the environment, motivation problems are not as easily addressed. Motivation is important because of its significance as a determinant of performance and its intangible nature. HISTORICAL VIEWS OF MOTIVATION. Evolution can be traced from scientific management, through the human relations movement, to the human resource approach. Scientific management: The assumptions of scientific management were that work is inherently unpleasant for most people and the money they earn is more important to employees than is the nature of the job they are performing. Human relations movement: This school of thought emphasized the role of social processes in organizations and assumed that the need for belongingness and the need to feel useful are more important than money in motivating employees. Human resource approach: This view assumes that people want to contribute to organizational effectiveness and are able to make genuine...
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...detriment of others. Any action results from a motivation. If we harm others, it is from a motivation; and if we help others, it is also from a motivation. We say of an honest and ethical person that she is "made lose interest" whereas a "interested” person is considered as deceitful and selfish. Nevertheless, he is natural on behalf of each of us, to pursue or to protect his interests. The interest is necessary for the man. But the interest, it is also the search for what can benefit us and this can raise an ethical problem. The motivation is neither personality's line independent from the context, nor consequence Almost automatic of a good management or an adequate organization. It is about the resultant of economic, organizational, technological and cultural constraints, and about their interactions with needs, values and aspiration of the individuals. The motivation is not a stable process, it is ceaselessly questioned. We can then wonder if the personal interest is the result of the human motivation and afterward if the rewards and the punishments are the only effective tools for a manager. We shall begin by seeing that the personal interest is the base of any motivations then we shall see that the punishments and the rewards are very effective tools in our company and afterward we shall see that in certain situations these tools are not the most effective. The personal interest is the base and the final result of any motivation in our current company. Indeed, every act which...
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...Rewards and incentives in company have benefits for both employees and employers. When performance and productivity was recognized, employees have increased high morale, job gratification and involvement in business function. However, the best ways to motivate employees is a controversial and complex issue. Incentive and rewards can be both Financial and Nonmonetary. A number of researcher has reported that the key to organization people to show their high efficiency is to provide employee an incentive or rewards. An examination of the research reveals a variety of perspective. Some researcher argue that financial incentive and rewards increase employee motivation and engagement more than use nonmonetary programs. Whilst, others researcher suggest that nonmonetary incentive and reward can lead higher performance. It is argued that nonmonetary are more effective on employee performance. The distinction between reward and incentive will not add to the above thesis and will therefore not be discuss in this essay. In the workplace employees need some motivation incentives to improve their performance and productivity. However, motivation is complex and people are not all motivated in the same way because people have different desire, different attention and different background so they also have different individual motivational. There are those who are motivated intrinsically, which means bring motivated by internal inspiration or individual feeling depend on person. When...
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...to a customer-relationship management system, which means working in teams where different departments work closely together to accomplish a sale. This new sales system asks for a different reward systems as the sales person is no longer individually responsible for the sale. Situation Analysis Issue and Opportunity Identification Recently the sales of Riordan manufacturing are declining which might be one of the reasons for the dissatisfaction amongst the stakeholder groups. The shareholders wants the highest return of their investment, managers want increased sales to earn more bonuses, and the employees want increased pay, more rewards, and higher job satisfaction. There are issues on the, employees are not satisfied with their job and the compensation that can be earned. This decline in satisfaction is shown in the employees’ behavior and leads to low morale, lower motivation, lower production activity and increased turnover. There are three key factors that explain this behavior: ability, motivation, and opportunity. (Dougherty & Dreher, 2001) Managers are worried that they will lose their key-employees and management needs to motivate the key engineers to prevent them leaving the organization. Organizational environments and individual characteristics must be simultaneously taken into account in attempts to predict, explain, or modify employee behavior. (Dougherty & Dreher, 2001) the task demands and reward systems are a tool to influence employees’ behavior...
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...managers, budget analysts, media planners, market research, innovation, sponsorship, public relations, events coordination, etc * In this research-based paper, I will be focusing on the company’s reward system for employees and the relationship this has with motivation. Currently, the company’s award system for the marketing department is based on each brand’s trimester performance, and the awards are given to the brand managers. The awards consist of recognition and a cash prize. * According to the Organizational Culture Inventory, SABMiller’s primary culture style is self-actualizing which indicates that the company values creativity, encourages employees to develop their skills, improve themselves and enjoy their work. The secondary culture style is Achievement, which indicates that the company encourages employees to set and accomplish goals (see figure 1.1). Organizational Culture Inventory Circumplex Figure 1.1 B. PROBLEM STATEMENT * SABMiller’s high management is not practicing good leadership skills regarding teamwork, employee recognition, acknowledgment of accomplishments, and motivation. The reward system is lacking fairness regarding who gets rewarded and the merits on which it is based. This situation is having an impact on employee motivation and performance, given the fact that team members are responsible for outcomes, yet...
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...RESEARCH IN BUSINESS A STUDY ON THE IMPACT OF REWARDS ON EMPLOYEE MOTIVATION IN THE TELECOMMUNICATION SECTOR OF PAKISTAN Farheen B. Zaidi 1, Zahra Abbas 2 JULY 2011 VOL 3, NO 3 Abstract A good reward system is necessary to motivate the employees of an organization. This study was conducted in order to investigate the impact of rewards on the motivational level of employees of telecommunication sector of Pakistan. The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework. A total of 292 questionnaires were returned fully complete. The research study showed that there exists a strong positive relationship in rewards and motivation among the employees. It was concluded that monetary rewards have greater impact on motivation of employees than the non-monetary rewards. Significant differences in rewards offered to employees and motivation level were found in the analysis of comparison of means with respect to gender, age group, marital status, working duration in the organization and salary. Keywords— Focus, Determination, Monetary Rewards, Non-Monetary Rewards, Motivation, Rewards . INTRODUCTION "Motivation is the art of getting people to do what you want them to do because they want to do it." (Eisenhower) Rewards whether monetary or non-monetary can be used...
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...IMPACT OF FINANCIAL AND NONFINANCIAL REWARDS ON EMPLOYEE MOTIVATION Madhuri Kshirsagar, Dr. V. Y. Waghale, Research Scholar Dhanwate National College Congress Nagar, Nagpur-440012 (Maharashtra) India ABSTRACT Employees lacking motivation can present a problem for all types of organizations, and there can be far-reaching impacts when employee performance is down. The ability to foster a motivating work environment is essential, and strategies must focus on how employee satisfaction and performance levels are tied to motivation. There are several ways that organizations can engage their workforce, and this study allows for an examination of the impacts of financial and non-financial rewards with respect to overall levels of employee motivation. Reward management process covers both financial and non-financial rewards. The concept of the psychological contract is at least as important in understanding and managing motivation as the technical elements of the economics and transactions aspects of reward. Hence, in this paper, we find out the role of incentives in motivating employees and suggest the organizations to make suitable alterations in their rewards system. Key Words: Incentives / Rewards, Motivation, Satisfaction, Performance 1.0 Introduction: Motivation is the act of giving somebody a reason or incentive to do something. It also means giving somebody hope or support to perform particular tasks. Motivation factor plays a vital role in business...
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...Development University of Phoenix Dr. P. D’Urso, PhD., BBSS November 19, 2012 Consulting Firm – Engagement Strategy A consulting firm has decided to streamline its process and merged with a software development company. The merger has caused the employees to be disgruntled and angry. The employees do not like change and this has caused morale to drop and production to decrease. Change leadership is needed as this merger will increase the profits of the firm. Additional employees need to be hired and the morale of the current employees needs to be lifted. The following strategies will be employed to help motivate our workforce and keep our strategic advantage. Performance Management System To implement an effective performance management system training and performance are two key aspects of any business, company, or organization. Proper training provides individuals with the knowledge, skills, and abilities to successfully perform their job duties collectively. Performance management is the achievement of performance through the effective management of people and the environment in which they operate. Performance management is the core of the organization; it is both strategic and tactical. Performance management structures and sets achievable goals for the organizations and develops competence and capability to achieve the goals set forth. To implement an effective and concise performance plan within the organization requires tactical measures...
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