Essay On Conditional Bonuses

These leaders are very trusting of there members abilities and will let the team get on with the task at hand, They give very little input with the day to day running of the team.

“Incentives are the cornerstone of modern life”(Levitt and Dubner 12). Levitt and Dubner once mentioned in their book “Freakonomics”. According to Oxford dictionary, incentives are something tends to incite to action or greater effort, as a reward offered for increased productivity (“incentives”). In business field, incentives are something given by bosses to encourage their employees to endeavour in bringing benefits to their business. For a simple example, the employee who hits the monthly or year sales target will get cash or prizes as incentives. Apparently, these incentives are something that motivates employees maintains their great performance and also to motivate other employee, whoever wants to get the incentives, work harder.

Reward, whether it is financial (in terms of a monetary bonus) or simply praise and the recognition of success, will positively impact levels of motivation within a team. For example, a sales team working towards a target, that if achieved will mean a financial bonus will be more motivated than a team without this incentive, especially if a high percentage of that team have money as a primary motivating factor. The effect of praise and recognition on staff will be a team that feels valued and appreciated by its organisation. This will help promote harmony and make for a stronger, healthier and a more motivated team. A team that is not praised and recognised will soon start to feel that their hard work is not appreciated.

Managers in many cases are presented with sales incentives in a retail environment. These incentives may range from free products, to cash prizes, to trips, bonuses, etc.

1.1 Explain the importance of the team having a common sense of propose that supports the overall vision and strategy of the organisation

1. When it is difficult to determine the effect of a salesperson’s effort son sales rather than pay any incentive through commission it is better to use a bonus with salary as part of the compensation package

Encourage them when they hit notable mileston. Increase motivation by providing incentives to work toward. You can create individual incentives for each employee or team incentives to motivate employees as a group. Financial incentives can include cash prizes, gift cards or restaurant gift certificates. Non-financial incentives can include extra vacation days, compressed work weeks or choice office space or parking spots. Celebrate employee achievements through employee-of-the-month or star performer awards. Make a big deal out of accomplishments by celebrating at staff meetings. Print certificates or engrave plaques, issue a press release or post a notice on your company website. Recognize team accomplishments as well as individual efforts. Motivate employees with the incentive of a profit-sharing program. In this way, employees increase their earnings when they help you increase yours. This approach simultaneously promotes collective goal-setting and teamwork. It also gives employees a sense of pride in ownership and can improve performance and reduce turnover as well as raise morale. Regularly survey employees about their levels of

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 sales department is the heart of every company. A company depends on the sales of their products. The success of the sales department is imperative to the continued growth of a company. In order for a sales department to experience success, the company must find new ways to motivate the employees on a continuous basis. An excellent way to motivate the employees is to provide incentive programs or total rewards programs. These incentive programs

Research has repeatedly found that the main team motivators are achievement, recognition, work itself, responsibility, advancement and growth. In other words, even though adequate salaries, incentive pay and bonus plans could avoid dissatisfaction, they do not lead to either job satisfaction or high motivation. The best way to motivate your team, but realizes that people are motivated by their own individual goals, values and aspirations. People know and understand their needs, and then give them to the project tasks in which they can be motivated by meeting their needs. People are more motivated by feelings and sensitivities than they are facts and logic. It is common for people to say in well-paying job because they do not feel appreciated, do not feel challenged nor do not want work environment.

There are numerous motivational theories that explain why people do what they do. When viewed collectively, these theories suggest people’s actions are driven by the following factors: economic, social, and self-construct. Economic factors include not only money, but health protection, security, wealth, physical safety, and purchasing power. Sales commissions fit most of these needs, but do not fully meet the needs for security and physical safety. When people think about and act upon what others think of them, they are being influenced by social factors. Most people will work harder for positive feedback and avoid performance that garners negative feedback. For example, some people are eager to conform to the norms of a sales team and are positively motivated by the performance of the entire team. Self-construct is the inner voice that drives an individual to perform and differs in every individual. Some people are driven in the pursuit of self-accomplishment, while others are driven by the need for power or acceptance. Each of these factors are combined in varying degrees in all individuals, whether salespeople or not.

Management expects all employees to achieve that goal in order to receive a monthly bonus in their paycheck. The problem with this motivational technique was that each employee was to push the sale of clothing and other retail in order to make the bonuses each month. This would cause some employees to get hostile because they were not selling the most that they had set for themselves. Another problem that arose from this motivational technique was that employees began to dislike the employees that had met their quota for the month because they had received bonuses, while the other believed that had worked just as hard but not received the extra money for their effort. This technique was based solely on the amount of inventory

To motivate employees to work towards reaching organizational goals, managers frequently depend on some form of enticement. Beyond monetary compensation, awards and additional types of acknowledgment can be given, and the ability to choose a work schedule is a possibility. A reasonable pay system, which would be an incentive for individuals and groups to achieve organizational goals, is a hardship manager’s face (Jones & George, 2011). Within the company that I work for, every quarter awards are presented to Customer Service Agents who have maintained a 95 percent or above quality score. Monetary awards are given out as well as time off coupons.

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.

Motivating individuals and groups at work often times can be a challenging task. Individuals must have the desire to want to be motivated. This challenge is difficult as individuals have different types of goals that motivate them. Motivation is typically driven by some sort of recognition. In today’s economic hardship businesses are having to do more with less. Businesses are downsizing, which causes them not to re-hire for open positions or eliminate unnecessary positions completely.