Organization Reward and Motivation

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Employees are motivated by both intrinsic and extrinsic rewards. In order for the reward system to be effective, it must encompass both sources of motivation. Studies have found that among employees surveyed, money was not the most important motivator, and in some instances managers have found money to have a de-motivating or negative effect on employees.  This research paper addresses the definition of rewards in the work environment context, the importance of rewarding employees for their job performance, motivators to employee performance such as extrinsic and intrinsic rewards, Herzberg’s two-factor theory in relation to rewarding employees, Hackman and Oldman model of job enrichment that

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

It is well known that pay helps to motivate and even retain staff in most cases, but nowadays it is not just the financial rewards that employees are seeking, its possibility of career enhancement and training opportunities. If employees know that they are being appreciated and groomed for greater things then this could have a positive impact on employee and employer relations.

Discretionary effort can be a key component in organizational performance. Unfortunately, approaches to motivation are too often underpinned by simplistic assumptions about how it works. The process of motivation is much more complex than many people think. People have different needs; establish different goals to assume that one approach to motivation fits all. That is why the assumptions underlying belief in the virtue of performance related pay as a means of providing a motivational practice are most likely to function effectively if they are based on proper understanding of what is involved.

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

A total rewards system is utilized to motivate, attract, and retain employees whom offer talents to an organization. Total rewards can be either intrinsic and extrinsic rewards, which can include compensation, benefits, and personal growth. It can be somewhat difficult to retain a steady and reliable staff due to the numerous opportunities that are available in today’s workforce and organizations must do all they can to keep their employees engaged and motivated. After companies assess, design, and execute their total rewards programs, the final and most overlooked phase is to evaluate its success, or failure. The evaluation phase shows management the benefits of their total reward system and if the investment has paid off or not. Employee productivity and job satisfaction are two methods which can be used for this purpose.

There are very many factors that motivate employees to do outstanding work in their jobs. Though most of them are non-monetary factors like participative decision making, work teams, challenging jobs, goals in life or in the company, power and other factors. Most of the employees that emerge in their workplace, either in a small cubicle or a mega office have got some drive that enable them to perform in their work, but the key question is, is money is the key motivation in their workplace? In this essay both sides will be argued in order to find the answer to this (Robbins, Odendaal & Roodt, 2003).

     “Money is an unrealizable performance motivator unless it is an exceptionally large amount or it a large of total income is directly proportional to effort, as in sales commissions.” If pay is fair and sufficient, it will not motivate employees. Not enough personnel at companies

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.

This essay identified motivation theories and showed that there are more than financial ways to motivate employees and that effective leadership is also a great motivation for the workers. Unfortunately, the

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to

They are far more than just bonus plans and stock options. Reward systems mostly include various awards, recognition, promotions, reassignment, non-monetary bonuses linked to the performance of the employees. It includes a variety of monetary as well as non-monetary rewards (Deeprose, 2007). Rewards are important motivators. Their effectiveness depends upon three factors: drives, preference value and satisfying value of the goal objects. Financial incentives are linked more effectively with basic motivation or deficiency needs (which are necessary for survival). Non-financial incentives are linked more closely with higher motivation or becoming needs (self actualization needs) (Tyson & York, 2000).