...BETWEEN REWARDS, RECOGNITION AND MOTIVATION AT AN INSURANCE COMPANY IN THE WESTERN CAPE by ROSHAN LEVINA ROBERTS Submitted in partial fulfilment of the requirements for the degree of MAGISTER COMMERCI in the DEPARTMENT OF INDUSTRIAL PSYCHOLOGY at the UNIVERSITY OF THE WESTERN CAPE SUPERVISOR: KARL HESLOP NOVEMBER 2005 ABSTRACT Increasingly, organisations are realising that they have to establish an equitable balance between the employee’s contribution to the organisation and the organisation’s contribution to the employee. Establishing this balance is one of the main reasons to reward and recognise employees. Organisations that follow a strategic approach to creating this balance focus on the three main components of a reward system, which includes, compensation, benefits and recognition (Deeprose, 1994). Studies that have been conducted on the topic indicates that the most common problem in organisations today is that they miss the important component of recognition, which is the low-cost, high-return ingredient to a well-balanced reward system. A key focus of recognition is to make employees feel appreciated and valued (Sarvadi, 2005). Research has proven that employees who get recognised tend to have higher self-esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative (Mason, 2001). The aim of this study is to investigate whether rewards and recognition has an impact on employee motivation. A biographical...
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...Executive Summary This report discusses and examines employee motivation in an IT organisation. The report examines the benefits of employee motivation followed by the various theories concerning motivation. The initial portion of the report focuses on the benefits of employee motivation which is followed by a discussion of motivation theories – content theories and process theories. The report further tries to outline the various options or methods followed by organisations to drive higher levels of motivation among the workforce. The methods included in the report addresses the various rewards and recognition options, use of scorecards, fun and recreational activities, communication channels, learning and growth opportunities and corporate social responsibility as methods to effectively drive employee motivation levels. The report recommends the establishment of a basic framework with respect to hygiene factors of a workplace in order to successfully drive initiatives to motivate workforce. Further, the report concludes on the note that various other factors including cultural, political, social and spiritual needs should be considered while arriving at a combination of methods to drive higher levels of motivation. Success of the initiative would depend upon the appropriateness of technique and timeliness beyond other factors. Table of Contents Executive Summary ..........................................................................................
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...Question 1: Motivation Table of Contents Introduction 3 What is Motivation 3 Why is understanding motivation important for mangers 4 Maslow’s Hierarchy of Needs 4 Expectancy theory 5 Reinforcement theory 6 In relation to employee performance which theory should a Manager adopt 8 Conclusion 10 References 11 Introduction Motivation is a broad topic and is at times not clearly understood and often poorly practiced. There are many major factors that mangers conveniently use to escape majority or all the blame of their organisational problems. One would be that whenever things go wrong some managers tend to point out that the problem(s) have occurred due to lack of motivation from employees (“Employee-motivation strategies,” 1999). Theodore Roosevelt once said, "the best …[manger] is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it" (“Employee-motivation strategies,” 1999). Essentially the manager's obligation is to develop employee’s skill and harness their capabilities as much as possible for the development of the organisations they belong to (“Employee-motivation strategies,” 1999). The paper aims to provide an understanding in regards to the importance of human motivation. It will outline and discuss three motivational theories and how mangers may apply these theories to improve employee performance (Halepota, 2005). Having knowledge about motivation theories can...
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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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...(Armstrong & Baron, 2014). Performance management should be implemented as a strategy which can relate to all aspects of the organisation and it should run in parallel to the organisations HR policies, culture, style and communication infrastructure; hence why it will vary from business to business. When managing performance it should be taken into account that it can often be a complicated notion, and sometimes difficult to measure. Campbell 1990 suggested that performance is the outcome of three determinants: 1. Declarative knowledge 2. Procedural knowledge and skills 3. Motivation Therefore then assessing and rewarding performance a number of different factors will have to be taken into account including both outputs (results – i.e. turnover figures etc.) and inputs (behaviours – i.e. motivation). Effective performance management will ensure that employees working for the organisation will be aware of what the business aims to achieve and their role in helping them achieve these goals. It should also let them know what skills and competencies are required from them to fulfil their role. In turn performance management should further develop individual performance, and highlight areas, which need development to contribute to the overall performance of the organisation. If performance management is carried out effectively employees will be more engaged and therefore more likely to be performing to...
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...| | |BM 0210 | | | |Reward Management | |By Rebecca Ambler | BMO 0210 – CIPD Reward Management This assignment will critically evaluate reward philosophy, strategy and policy in Genix Healthcare Ltd. The Key economic, psychological and motivational theories that influence reward policies and practices will be identified as should the factors that influence employee satisfaction with our rewards and the reward system such as equity, fairness, consistency and transparency. Overview of Company Genix Healthcare is the UK’s fifth largest dental corporate company, founded in 2005 Genix was set up to address the shortage of NHS dentists in the UK by providing easy access to affordable dental care. In 2006, Genix Healthcare bought its first dental clinic in Garforth, Leeds. To support the local community Genix became the main sponsors of Garforth Town Football Club...
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... | |How to best reward employees? | | | | | |Yuling Zhang(19041245) | |2010/4/17 | |Understanding and Managing Organisations | Contents Contents 2 Introduction: 3 Total Reward and theories: 4 Intrinsic rewards more important: 5 The impacts of extrinsic rewards on intrinsic motivation: 6 Cognitive evaluation theory (CET) in motivational approach: 6 Self-perception theory in attributional approach 7 Behavioural approach: 7 Performance management, high performance working and reward strategy: 8 Other noteworthy points when rewarding: 9 Case study: 10 Conclusion: 11 Reference: 12 How to best reward the employees? Introduction: Given that people is highly...
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...“MOTIVATION IS A CRITICAL FACTOR FOR THR ACHIEVEMENT OF ORGANIZATIONAL AND INDIVIDUAL SUCCESS. HOWEVER IT IS EQUALLY CRITICAL FOR MANAGERS TO KNOW THE DIFFERENT MOTIVATIONAL THEORIES AND APPROACHES AS WELL AS HOW TO USE THEM EFFECTIVELY” Table of Contents 1.0 Introduction 2.1 Background Information 3 2.2 The aim and objective 4 2.3 How to accomplish the aim 5 2.0 Discussion 3.4 Definition of Motivation 6 3.5 Importance of employee motivation 7 3.6 Basic concept of employee motivation 9 3.7 Different theories of motivation 10 3.8 Why managers should have a good understanding about motivation 16 3.0 Conclusion 17 4.0 References 18 1.0 Introduction 1.1 Background information ...
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...White Paper Motivating Employees on a Budget Keeping employees motivated and engaged is more important than ever during tough economic times. This white paper takes you through the dos and don‟ts of incentivising on a budget - how to maintain morale and maximise the return on your investment. During difficult economic conditions, the competition for custom intensifies; customers become far more discretionary in their spending and focus on getting the most out of their money. So it„s essential that employees are motivated to provide the highest levels of service that will set the company apart. Whilst it may be tempting for employers to make a quick saving by cutting the incentives budget, it‟s also a false economy. It‟s important to remember that organisations with effective incentive schemes and high employee engagement consistently and significantly outperform their competitors. Unfortunately over two-thirds of employers report that low staff morale is currently an issue and almost three-quarters realise that they face the problem of re-engaging staff in the organisation.1 Going forward, employers are recognising that employee commitment will be vital if a company‟s performance is to be sustained. A recent survey found that 64% of employers intend to increase their focus on the motivational value of reward programmes over the next 2-3 years.2 It‟s commonly agreed that incentives have a positive and lasting effect on behaviour. One study reported that 75% of employers accept...
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...College Number(Bottom Left of College Card) | 100677053 | Year: | 2 | Course Code | MN207 1B | Course Tutor: | Dr. Vidu Badigannavar | Assignment No.: | 1 | Degree Title: | Human Resource Management (HRM) | Question No. & Title: | Critically examine the strengths and limitations of the ‘universalist’ and the ‘contingency’ approaches to HR Strategy. In doing so, explain under what conditions HR strategy may help a firm secure competitive advantage. | Explain analytically what is meant by ‘psychological contract’. Critically assess which process theories of motivation could help employers establish a ‘psychological contract’ with their employees? In today’s world, contracts play an ever increasing importance due to our technological growth and the complexity and modern society. Many of us have contracts with our banks and mortgage companies, universities and many others. These contracts are written, precise and formal and penalties exists for breaking these contracts. These are economic contracts. However, if two people agree to meet for lunch you are engaging into an informal contract and the expectancy is that both of you will meet as agreed. If either of the parties are late, the other will be wary of meeting again, one will feel guilt and the other annoyed that the contract has been broken. In both the formal and informal contracts an exchange has taken place which is the essential feature of any contract and are theoretically entered into willingly...
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...human resource management practices in organisations. Unit introduction Human resource management is a dynamic activity in any organisation as it takes place against a changing economic, technical, legal and social background. It is important for learners to appreciate that effective human resource management means getting the best out of the people who work for an organisation in order to ensure the organisation fulfils its purposes, whether it is a football club winning the premiership, or a hospital increasing the success rates for medical operations. Many organisations say that their employees are their most valuable resource because of their skills, knowledge and attitudes. As labour is both an expensive and valuable resource, it is important to ensure it is planned and that the best value is obtained from employees contributions. Human resource managers have to plan their human resource requirements against a background of internal and external factors which are dynamic and constantly changing. The first part of this unit introduces learners to the factors that influence human resource managers when they are planning current and future human resource requirements. It is important to ensure that once staff have been recruited, their contribution to the organisation is maximised. Learners will develop their understanding of the importance organisations place on gaining the cooperation and commitment of their employees. Managers need to understand how to motivate...
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...ENGAGEMENT Engagement and motivation The two are not the same, say John Sylvester and Ruth Patel mployee engagement has become a popular management term, often used to describe how organisations have approached the issue of productivity or morale among staff. It is widely used when discussing issues such as staff motivation, loyalty, retention, reward and recognition. E Engagement is a hot topic, but the signs are that few organisations are doing it well. Only 13 per cent of employees worldwide are engaged at work, according to GaUup's 142-country study The State of the Global Workplace carried out last October. The study suggests that only about one in eight workers are psychologically committed to their job and likely to be making a positive contribution to their organisations. It is vital to recognise that engagement is not the same as motivation. L8dD professionals need to ensure that employees are broadly engaged with the aims of their organisations before they can even think about implementing reward and recognition schemes aimed at boosting motivation. Such initiatives hope to achieve specific sales goals or service levels but, without engagement, there is a real danger that they will be met with indifference or cynicism. Employees will be more engaged if they feel they are learning and growing in their role and adding real value to the goals of the business. L8dD professionals have a critical role to play here: if they can foster...
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...No. | Introduction | 2 | Organizational design and change in employee outlooks | 3 | Motivation Impact | 5 | Reward system as a driver | 7 | Diversity of Groups & teams | 9 | Stress | 12 | Bibliography | 15 | Introduction Organisational design is the alignment of structure, process, rewards, metrics and talent with the strategy of the business. Companies must assess the competencies needed and the established collaborative structures linking the organization together, and must devise a system for stimulating the demand for solutions, with informed expectations. Organizational dynamics refers to the interaction of different factors that define the organization and how it reacts to changes at a broad level . Employee attitude is dependent on the changes that keep taking place in an organization. The perception of the employees about an organization is ever changing and thus an amiable atmosphere needs to be created for people to work and contribute in the best possible way . This study is focussed on the impact of organizational behaviour in context of the Indian IT industry. We as a group have chosen this topic because all of us have prior work experience in the IT sector and we could easily relate it to the concepts that we studied. Organisational Design and change in employee attitude Organisational design is the alignment of structure, process, rewards, metrics and talent with the strategy of the business. Companies must assess the competencies...
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...Executive Summary Designing and implementing a compensation package that rewards all staff according to performance, and succeeds in appealing to their individual motivations is an enormous challenge for any organisation. Some find it easier to simply pay a percentage increase to all staff, irrespective of their performance. A literature review was undertaken to determine both the current and historical views of performance management. A vast amount of material has been written in journal articles and textbooks. All point to the complexity of the issue and the apparent inability to find a solution that will suit all. For the last 100 years, HR specialists, psychologists and economists have been collaborating to try and develop a system which would have broad appeal for both staff and employers. Many theorists contributed to the discussions, asserting that individual motivations for pay were based on the theory of agency, goal, control, expectancy, or reinforcement. Performance management systems are necessary to enable companies to enable them to attract, retain and motivate the best calibre of employees, thereby assisting companies to achieve their organisational goals. However, different people are motivated by different things. Some by money or other tangible rewards and some by the pleasure of completing tasks, intangible rewards. These are also referred to as extrinsic and intrinsic motivations. Rewards systems can be developed based on...
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...http://samedayessay.com 1 The Impact of Rewards on Employee Performance: Case Study of Organisations from Two Sectors in Nigeria http://samedayessay.com 2 Chapter 1 Introduction Overview of the Study W hat with the constant changes occurring in the world today, especially with regards to technology and innovation, there is a need for companies to reassess the manner in which they communicate to both their employees and their customers. At the same time, there is also a need for these companies to organise the tasks at hand, design systems and processes, and re-evaluate and improve current management styles (Harmon, 2007). This is especially needed in areas where the competition is constantly increasing and consistently challenging. Two of these industries are the banking industry and the hospitality industry (which the researcher shall discuss in detail in the following sections of this paper). In this chapter, the researcher shall provide a brief overview of the remaining sections of this paper, the aims and objectives of this research study, and its rationale. In addition, the researcher shall also provide a conclusion summarizing what this chapter shall be about, which shall also be a recurring feature of succeeding chapters. According to Dewhurst et al. (2010), there are other means to reward employees that do not just focus on financial compensation. Some of these include the praise that employees are able to acquire from their managers, the...
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