Good Essays
Companies reward their employees with both tangible goods, as well as praise. For example, a sales department may offer a monthly bonus to the highest earner. Not all tangible rewards come in the form of money. Some companies host free lunches, or give away company gear to good workers. Many managers choose to reward their best employees by simply praising them for a job well done, or by recognizing the hard work they put in to a project.
Workplace reward systems are incentive programs that encourage employee engagement and productivity by offering bonuses, increased pay, additional time off or other awards for a job well done. Reward systems recognize staff members who excel in areas such as customer service, loyalty and sales
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The appreciation of those skills can be a greater motivator than any reward or threat.
Employees need direction. A flaw with consequence-based leadership styles is that it doesn’t tell employees how to succeed. It tells them they must succeed, but not how to do so. That doesn’t mean that transactional leadership doesn’t work. It just means that employees still need some direction from above. When leaders are more involved, employees know they can count on them to provide a direction.
Transactional leadership can encourage unethical behavior. When in their best interest, employees can resort to unethical means to achieve results. The temptation of rewards and fear of consequences is compelling. It can encourage deception or illegal activity. Employees may sabotage the company’s interests in pursuit of their own. As a precaution, businesses need to be clear on the terms employees must work under. Employees are also less likely to resort to unethical behavior when their leaders are able to earn their loyalty.
This is not to say that transactional leadership does not work. Rewards and punishments are great tools to motivate. However, they may be far more effective when combined with other leadership styles and motivation tools. Making employees feel included can provide greater motivation and overall satisfaction.
The transactional style has always been effective. It has also been overused by many companies. Employees can be more
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