Comparing Co-Workers Against Each Other: Does This Motivate Employees?

The Equity Theory touches on the effects these situations have on the employee’s motivational level. In society today employees are constantly comparing how they are

Recognizing employees for accomplishments such as finishing a major project, reaching sales targets or providing excellent customer service can be an important motivating factor. Set goals for workers to strive for and offer rewards for reaching them. This could be in the form of an employee of the month scheme, a bonus, or a promotion. Some companies conduct meetings where employees are recognised for good work in front of their colleagues. This can help motivate all the workers in the business to strive for success.

Using the forced-ranking system allowed the DaVita Dialysis organization to improve upon the method used to evaluate the actual performance of recruiters and recruited employees. This is the second step to the control process, in which the actual performance is measured with enough accuracy to differentiate between the reality and the original plan (Lombardi, 2007). Management must evaluate others on an individual bases and compare the results to the evaluations of other employees (Lombardi, 2007).

Employees were rated with respect to others unlike the old system where there was absolute ranking.

There are as many different methods of motivating employees today as there are companies operating in the global business environment. Still, some strategies are prevalent across all organizations striving to improve employee motivation. The best employee motivation efforts will focus on what the employees deem to be important. It may be that employees within the same department of the same organization will have different motivators. Many organizations today find that flexibility in job design and reward systems has resulted in employees ' increased longevity with the company, improved productivity, and better morale.

The forced ranking is a very harsh rating system in my eyes. I believe the forced ranking system is unethical. Eliminating the bottom ten of an organization ever year can be costly to a company. It promotes employee turnover and increases the company’s labor cost. Recruiting, hiring and training new people to replace the terminated employees can be very expensive. There is no guarantee that the newly-hired employees will be any better than the old employees that were eliminated. This system is not fair to employees and emp0loyees don’t have faith in this system. There is better ways to manage performance and there are effective ways to improve performance level of employees. Management can control performance by exploring the causes of performance problem, what cause the problem, develop an effective plan and empower their employees to reach a solution, communicate with the worker and provide positive feedback. Once an employee has been identified as a non productive employees, management should find out why the employee is not productive and offer them coaching or training to help the individual.

To foster competitiveness and deliver better results, there is a program called STACK where employees are ranked based on the work done and their incentive is decided based on it. Better the rank, better the incentives.

Not only does this create significant problems internally, but also problems within the organization which will determine the organization’s ability to maintain sustainability or growth in external markets. The internal labor market, which is determined by employees and the “pressure” (Lazear & Oyer, 2004, p. 2) applied within the working environment itself, changes based on factors of compensation; most notably when the environment is competitive or employees feel they are being treated unfairly for work

Health care organizations in recent decades have found they must do more with fewer resources, in particular fewer human resources. Economic instability in the United States coupled with governmental changes in health care reimbursement structures have compelled considerable reductions in force in health care organizations and in some instances elimination of services previously provided. In this economic environment, dedicated and motivated employees in health care facilities are the most valuable resources of the organization. However, for employees to be valuable to the organization they must be engaged in the goals,

Personally, I would different ways of motivating each employee. By offering, incentives for achieving and exceeding company goals. In addition, I would maybe establish an employee lead group to deliberate fun events that employees can participate in after work hours.

The two methods I will be using are Simple ranking and forced distribution method. Simple ranking involves managers to rank employees in their team from the highest performer to the poorest performer. The ranking method is easy to use and economical; however it is subjective in that it depends on one person opinion to decide the worth of an employee.

Some managers rotated the highest ranking between their employees from one year to the next. So the objective of developing new evaluation system was unfulfilled.

The equity theory conceived by J. Stacy Adams is based premise that "people gauge the fairness of their work outcomes relative to others, any perceived inequity is a motivating state of mind" (Schermerhorn, Hunt, and Osborn, 2005, p.10, chpt.6). This theory when applied to a sales force would not be the best method to motivate this employee group as to what is deemed fair by a team leader could be perceived as unfair by the

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

From the interview with Ms. Lim, the managerial will rank their employees according to their relative level of performance. The employees will be call upon into the office by their own manager or even supervisor, and will be interviewed accordingly. Ranking is done on an annual basis during the annual planning cycle, which takes place worldwide during Quarter 1. There are three rank categories and a performance category for employees who are not ranked because they are not consistently demonstrating the performance expected of those in similar positions. The rank categories are: