...each department within the organization is adequately staffed, compensation, and benefit packages, and keeping employees motivated. While monetary rewards have been linked to motivation so have non-monetary rewards. Some non-monetary rewards include; recognition, communication, flexible working hours, wellness programs, and education and development programs. Introduction A Forbes article investigating the significance of positive work environments mentions, a fundamental benefit creating a favorable environment is the effect it has on motivating employees. The article continues by stating, ‘Employees that are happy tend to be more productive, which is better for a business’ (Forbes, 2013). Showing that there is a correlation employee satisfaction/perception and a company’s success. Rahimli in an article refers to the changing environment, and how critical it is to keep abreast with changes in innovation, to be effective and efficient. Rahimli further remarks, if organizations aid in enhancing the skills of their employees with training, the author alleges the employee’s performance will improve. Training is indeed one way non-monetary way to motivate employees, the skills they learn can be used where ever they may go. Key words Human Resources, Human resources in Health Care, 'the function or role', (non-financial) and (non-monetary), 'motivation or incentive', motivation or drive. ‘Work Motivation’, (role or function), (supervisor or manager). Knowledge Merriam...
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...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 as significant...
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...IMPACT OF NON-MONETARY MOTIVATORS ON STAFF PERFORMANCE Positive impact According to the Merriam-Webster dictionary, motivation is one of the external and internal factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject or to make an effort attain a goal. Armstrong (2014), classifies motivation as strength and direction of behaviour and the factors that influence people to behave in certain ways. This section will illustrate the impact of non-monetary motivators on staff performance. Watson, (1994) admits that motivation is the number one problem that is facing modern business today. Non-monetary motivation is one of the most essential ways to motivate staff within an organisation. In many countries owners and top managers are using systems of motivation for staff. In the U.S.A. seventy five percent of organisations motivate staff with non-monetary motivators. This percentage reflects the importance and positive impact of motivation of employees.There are many types of non-monetary motivators and all of them have positive impacts on organisations. Douglas, E (2012) believes non-monetary awards may include: • Restaurant coupons • Relocation costs • Movie tickets • Recognition of birthdays • Free lunches, snacks, or beverages • Covered parking spaces • Outstanding employee plaques • Employee discounts • Tuition Reimbursement • Preferred office/classroom/team selection • Flex time • Job "swapping" ...
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...INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT AND COMMERCE VOLUME-1, ISSUE-6 (September 2014) ISSN: (2348-9766) 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...
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...Rewards System Proposal Name: Felecia Simmons Professor John Muehl Total Rewards Date: February 12, 2012 Introduction Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry. Total Rewards Concept The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination...
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...into categories (contact, process, and behaviors). This handbook will concentrate on behavior. In other words, how one makes decisions to achieve what one wants. The process is best explained via the Expectancy Theory, Goal-setting Theory, and the Equity Theory of Motivation. The Expectancy Theory of Motivation is based on three components. First, there is expectancy; one’s efforts resulting in achieving the desired performance goals. This is dependent on personal beliefs, the difficulty in achieving the goals, and the degree of control over goal outcomes. Second, there is instrumentality; one’s belief that meeting the expected performance yields the best reward. This is centered on trusting good performance will be rewarded per an organization’s policies. Third, there is valance; the value one places on the reward or rather the source of motivation. This is dependent on one’s needs, goals, performances, and motivation (Scholl, n.d.). The...
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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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...The purpose of this report is to discuss the issue of employee motivation and rewards, and recommend how a company can successfully motivate its employees and achieve high performance levels similar to Google Australia. Diverse methods/techniques and reward programs are used for successful employee motivation and the effectiveness of these are examined in this report. This report examines the two main arguments comprising extrinsic and intrinsic methods regarding effective employee motivation and job satisfaction and correlating it with high levels of work performance from employees. The arguments of extrinsic rewards for work achieving higher levels of motivation are stated by Victor H. Vroom’s Expectancy theory (1964). It is and also reinforced by Frederick Winslow Taylor Theory which claims employees are primarily motivated by pay. This is contrary to that of Frederick Herzberg’s Two-factor theory (also known as Motivator-Hygiene Theory) , which argues that intrinsic factors such as recognition increase motivation and job satisfaction, against that of extrinsic factors. Therefore in this report it is imperative to identify the most effective scheme in which employees achieve high levels of motivation and performance on a long term and consistent basis for a company. 2.0 - Problem Identification Google Australia Management has been able to effectively achieve success with their unique rewards scheme and sociable work environment. However a potential problem could occur if...
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...colleague and even the management. And these individual perceptions are compared. Along with, on the basis of these comparisons suitable plan can be created which can be implemented to solve the problem. Giving employee themselves to make a decision may brings the thought that their opinion are valued and are important part of the company (Gregory, n.d.). Hence, there is very less chance of violation or misunderstanding when the decisions are made themselves by the worker. Beside that motivation is also the important factor involved in satisfaction of the employee. Rewards or the reorganization are the greatest tools to increase motivation and increase job satisfaction and performance. The rewards may be the monetary or the non monetary means. Non-monetary reward may includes insurance, holiday packages etc. These types of reward system may reduce the stress inspiring them to work at their best. And monetary reward may be increases in salary, certain bonuses etc. In conclusion, since employee are the one who break and make the company, earning gratification from them is as importance as that from the customer. In order to satisfy them,...
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...COMM/112 July 25, 2013 Non-Monetary Rewards in the Workplace Incentives are utilizable tools that are used as motivational mechanisms. Incentives are also used for and applied to any aspect of the everyday life as a form to keep the individual who is striving for it the will and the motivation to keep on reaching for the goal. Individuals can even make use of incentives on themselves, for example if an individual wants to stick to a workout regimen that he or she has formulates for him or herself but is finding it hard to keep with the specified routine. That individual can devise an incentive plan that states if he or she sticks with the workout plan, he or she may go purchase for themselves a new outfit. This same proposal can be applied to incentives or rewards in the workplace. Monetary rewards and incentives works wonders in the workplace, for instance programs that employers offer in order to boost the performance levels of their employees while at the same time in return offering employees bonuses, paid vacations, cash rewards and etc. At the same time while employers offer monetary based rewards non-monetary rewards can be just as effective, while delivering more a powerful and consistent outcome with less of a financial impact. The idea of rewarding employees on a regular basis is very becoming in the business world today, the empowerment that it brings to each individual employee is priceless, which is why simple acts can go a long way at the workplace...
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...Final Project Date: 03/06/2011 Subject: Research Methodology Course: MBA Project Title: Role of Incentives in Performance Management Submitted By: Azim Ul Shan 053 Faran Iqbal 005 Farooq Javed 061 Arslan Dogar 063 Section/Batch: A/B6 Submitted To: Rana Nadir Idrees COMSATS Institute of Information Technology Sahiwal Campus Abstract: The unstructured interview is done by the NASIR HAMMID DOGAR of the branch manager of the HBL. Questions: 1. Whether this is people oriented or solely profit oriented organization? That is the people oriented organization and their objective of profit is fulfilled through the objective of people. They take care of their staff very well and when their work is very cooperative with one an other. 2. Whether this institute wants plays safe or is a risk taking venture? It depends upon the market conditions and the situations to involve in the risk taking activities basically their all activities involving giving credit contains risk factors. 3. What are number of employees at each job level? There are 73 employees working at different job levels. 4. What is vision and mission of the organization? ...
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...MONETARY REWARDS [pic] EMPLOYEE MONETARY REWARDS Monetary rewards are given for a variety of reasons. Some examples are meeting sales goals, achieving quality, outstanding performance in a given situation, or delivering a special project. Typical rewards are money in a form of a bonus, trips paid for by the company, gifts from a rewards catalog, or services such as cell phone or paid cable. TYPES OF REWARDS Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards is to select items that will spark the participant’s interest or feelings, and support the program’s objectives. Effective rewards will both motivate short-term behavior and provide motivation over time. VARIABLE PAY Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these. It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn Tully in Fortune , "The test of a good pay-for-performance plan is simple: It must motivate managers to produce earnings growth that far exceeds the extra cost of [the program]. Though employees...
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...1.0 INTRODUCTION Employee is motivated to increase their job performances. The questions are what motivation is and why it is important to motivate employee in workplace? Over the last twenty decades, motivation is number one factor in increasing level of performance. It is operationally defined as inner force that drives individuals to accomplish personal and organizational goals. In other words, motivated employees are needed in our rapidly changing workplaces. This is because every individual or employee needs motivation and so do organization. Employee who is highly motivated will help him achieve his personal goals and increase his job satisfaction and productive. Islam R and Hj Ismail A.Z (2008), based the study of Employee motivation A Malaysian perspective, the purpose of the research paper is to identify the motivation factors of employees that working in the various Malaysian organization. Based on the finding, it indicate that factor such as gender, race, education, employment status and marital status were found some impact on motivation. This finding gives a guideline for manager to develop a motivation program for employees Somehow, the motivation helps in self development of employee and always received gain by working with a dynamic team. And similarly, motivation is important to a workplace in organization as motivation will lead to an optimistic and challenging attitude at work place. Always remember, the more employee are motivated, the more empowerment...
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...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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...employee and other employees lies in the disposition. Employees are specialists who work for others and whose talents are combined with those of other specialists (employees) by the entrepreneurs (Baer). Employees look at responsibility as everything they have been given to do, entrepreneurs embrace all aspects of responsibility and try to take on as much as they can in an effort to control and shape it. Many people are motivated by money, at least for a period of time but eventually the motivational power of money often wears off; Ultimately most people are motivated by the work they do and the environment that they work in. Compensation and rewards for entrepreneurial employees should include both monetary and non-monetary ideas. Profit-sharing, generous bonuses and additional time-off benefits are some of the monetary compensation and rewards that large businesses are giving to their top employees, however they frequently create unwanted consequences to the company, such as increased tax burdens, diminishing teamwork among employees and prompting unwanted behavior(s)....
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