Forms of Motivation and Incentives in Organizations (Reward Systems)
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Forms of Motivation and Incentives in Organizations
There are different organizational reward systems that have been used by various groups in the past to motivate their employees. For whatever reasons, these rewards can be granted on a group or individual basis based on what is being paid and the purpose at that time (Luthans, 2011). Reward acts to motivate employee on performance and try to boost their commitment and improve the effectiveness of the workforce. The motivation and incentives can take different forms as set by an organization or its human resource department with the focus on the intended impact on the employees (Brown & May 2012). Of all the forms, money takes the lead as a motivating factor for employees, with rewards and benefits following. Most employees focus on the pay as a commitment to the services they offer and view pay as a contract for their expertise.
Benefits ensure loyalty and retention of workers within an organization as money lead as employee motivation. A reward is often short-lived and has no recurrent effect as the pay that an employee receives for the services offered or atarget in monetary terms. Pay has the most potential to motivate a team to achieve higher level of effectiveness (Luthans, 2011). People would see rewards and benefits in monetary terms, and think that with money, they can buy benefits and other rewards, and without money, it is not possible. Organizations would succeed best if they take into consideration the employee needs and the type of the employees they deal with in deciding on a reward system and allocation (Barron, Holladay, Johnson, & Jillian, 2014). Money rank as the top motivator for employees being valued more than anything else an organization can offer. For instance, a delay in pay or a reduction will have a direct impact on the employee performance than the withdrawal of benefits or reward (Olsen, 2015). This may lead to industrial action that may cripple the operations of an institution. A pay designed to fit employees need and the strategy of an organization can produce much in terms of performance.
Pay as a form of incentive is common, and employees view it as a right more than a motivation even though they perform to ensure they maintain it. In order to ensure that an organization gets best from employees, there is a new thing that need to be introduced out of the obvious to ensure that the employee gives the best performance (Hall & Rowland, 2014). In an organization that does not have properly laid down approach to motivating its employees, it is more likely that the performance will be below the expectations and may even dwindle or remain stagnant. Since the pay is commonly pre-determined based on individual deliverables, it does not provide compensation for the performances above average (Olsen, 2015). Benefits to an organization as well are relational to the level of a person within the work structure, and a greater look into it would bear much more than maintaining the traditional means.
A combination of the reward systems is sufficient for an organization and overall effectiveness of the workforce (Chapman & Kelliher, 2011). The pay is standard to all, and the benefits vary depending on the position within the organization. Introducing individual and group reward in the organization would bring a whole change and drive employee focus to better performance for the achievement. In another way, either benefits or pay may be designed for the employees based on their performance other than the position they hold in the organization to bring a distinctive view of the reward of performance other than position (Azzone & Palermo, 2011).This would see a body perform better through employee continued effort to deliver the best for the organization.