...Supporting Good practice in performance and reward management. | | | Questions | | 1. Explain at least 2 purposes of performance management and its relationship to business objectives.Performance management is a process, established by organizations to help them in accomplishing their objectives by maximizing the performance of an individual, team or whole organization and ensure that the objectives are achieved.Performance management process is a key component of the organizations overall approach to the management of its employees. As part of the performance the performance management system, the performance management process aims to achieve the following:To enable an individual employee to know exactly what is expected both in terms of outputs and the relevant, appropriate behavioral style, which underpin the delivery of the agreed objectives.To enable individual to identify and meet personal development needs which will facilitate the delivery of agreed objectives.To enable individual employees to feel motivated and valued for their contribution to the on-going success of the organization.To enable individuals to identify and achieve realistic career goals over time.To enable the organization to reward individuals fairly based on an objective assessment of their contributions. To enable the organization to audit the capability of its staff.To enable the organization to plan for its own staff succession.An honest and constructive working relationship between a manager...
Words: 1976 - Pages: 8
...Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees By: A. Drake, J. Wong, & S. Salter Behavioral Research in Accounting, Volume 19, pp. 71-89 Renee Claussen Janet Page Kevin Sandmann Matt Schlemmer Micah Shornack Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees It has been proven that the motivation level of employees can make or break an organization. This motivation level can be increased by the feeling of empowerment, and when the motivation level increases, so does organizational performance. Empowerment, a psychological concept, is greatly influenced by one’s habits, values, and surroundings. A model of psychological empowerment was developed by Gretchen Spreitzer, Professor of Management and Organizations at University of Michigan, and it is based on a survey of mid-level managers. Her model explains that by providing employees with performance feedback and rewards, the feeling of psychological empowerment will increase. In contrast to this model, Drake, Wong, & Salter (2007) conduct an experiment which uses subjects representative of lower-level employees, rather than mid-level managers. They choose to focus on lower-level employees because little research has been published that investigates the ideas of empowerment within this group (Drake, Wong, & Salter, 2007). The lower-level employees are directly...
Words: 2153 - Pages: 9
...Table of Contents 1.0 Introduction 2 1.1 Research question 2 1.2 Background 2 2.0 Motivation 2 2.1 Definition of Motivation 2 2.2 Theories of Motivation 3 3.0 Reward System in Organizations 3 4.0 Types of pay Scheme’s 4 4.1 Payment by Result 4 4.2 Skills-based pay 4 4.3 Profit sharing 4 4.4 Performance-related pay 5 5.0 Discussion 5 6.0 Empirical Study 6 6.1 Volvo Current Reward System 6 6.2 Employee and Mangers View of Reward system in Volvo 7 7.0 Empirical Study 2 7 8.0 Conclusion 7 9.0 References 8 10.0 Appendix Page 9 1.0 Introduction 1.1 Research question Today an organizations result is highly dependent on the employees work motivation. It therefore becomes important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right and adequate combination of immaterial and material rewards can boost up an employees work motivation and enhance their commitment to the company. The aim of this documentation is to investigate and analyze how well a reward system helps generate employee motivation. More specifically it aims, to conclude that a financial reward is not an effective implementation to increasing employee motivation 1.2 Background A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy...
Words: 2709 - Pages: 11
...The Effect of Employee Engagement In Reward Systems and Performance Management Introduction The success of any organization rests on the strategic management of its employees. It’s vital for an organization to attract, motivate and retain the best talent available to achieve and sustain a long-term competitive advantage. To achieve this the Human Resources Department must design a performance management system that not only links employee performance outcomes and expectations to its strategic goals, but also uses the system as a tool to improve employee productivity as well as recognizing employee accomplishments, all while emphasizing the employee’s role in the process. The challenging part is motivating the employee to increase and sustain productive behavior. An organization’s reward system can be used as a motivational tool if the rewards being offered are considered valuable by the employee. A valued reward system can positively affect an employee’s performance. Organizations use pay, benefits, compensation and other rewards as effective performance management instruments to enhance employee productivity so goals can be achieved. So, how does an organization choose the reward system it offers? This paper will focus on the hypothesis that employee engagement in choosing a valued reward system will positively effect performance management and subsequent employee success. Assessment An effective employee reward system is an integral part of the employer/employee relationship...
Words: 966 - Pages: 4
...Motivation, pay satisfaction, and job satisfaction of front-line employees Carolyn Stringer University of Otago, Dunedin, New Zealand Motivation of front-line employees 161 Jeni Didham Westpac, Sydney, Australia, and Paul Theivananthampillai University of Otago, Dunedin, New Zealand Abstract Purpose – This paper aims to explore the complex relationships between intrinsic and extrinsic motivation, pay satisfaction and job satisfaction at the retailer that uses a pay-for-performance plan for front-line employees. Design/methodology/approach – This paper draws on a single organization case study across seven stores, and uses a survey, archival documents, open-ended questions and researcher interaction with employees and managers. Findings – The results provide some support for the complementary nature of intrinsic and extrinsic motivation. Intrinsic motivation was positively associated with pay and job satisfactions, whereas extrinsic motivation was negatively associated with job satisfaction, and not associated with pay satisfaction. The qualitative insights indicate that pay fairness is important, and those who perceived pay was not fair generally made comparisons with others or felt that pay did not reflect their effort. It is also found that the majority of employees perceived that goals were clear. Research limitations/implications – The dominance of extrinsic motivation without including behavioural, social, and psychological factors in agency theory research...
Words: 9936 - Pages: 40
...The Effect of Reward to Employee’s Motivation towards Work Productivity Johnpaula Louise A. Sanchez COMARTS 2 Professor Chona Lajom October 4, 2012 A Review of the Literature Employee’s motivation is one of the most essential parts in a company’s development and success. In order to maximize the overall performance of the employee, the employer must know what is the most motivating for the employees and how to increase their job satisfaction. However, it may be challenging for the company to find out what motivates its employees especially because different people are motivated by different things. Motivation is the desire to achieve beyond expectations, being driven by internal rather than external factors, and to be involved in a continuous striving for improvement. In the context of work, motivation is a psychological process that results from the relationship between an employee and the work environment and it is characterized by a certain level of willingness. The employees are willing to increase their work effort in order to be rewarded and get a specific need or desire that they hold. According to Arnold (1991), motivation consists of three components. First is direction that tackles about what a person is trying to do. Second is effort, meaning, how hard a person is trying. And lastly, persistence, this means how long a person keeps on trying to get what he really wanted. Motivation theory tries to explain, why people at work, behave...
Words: 2120 - Pages: 9
...define the expectancy theory as not only what managers expect from the employees, it is also why employees are not motivated to do the jobs that they are assigned. When we take a deep look at the workplace today we can see some employees just do what it takes to get by in their given job. As we explore how the expectancy theory pertains to relationships on the job, we can learn some techniques to improve employee performance by using different types of motivation. There are three ideas that pertain to relationships in the expectancy theory of motivation. They are effort-performance relationship (Expectancy), performance-reward relationship (Instrumentality), and reward-personal goal relationship (Valence). The effort-performance relationship asks the question that if the employee puts forth the effort, will the employee believe that he or she will be able to complete the task satisfactorily? The performance-reward relationship asks if the task is completed satisfactorily, will the employee believe a reward will follow. The reward-personal goals relationship asks, will the employee perceive the reward to be important to personal...
Words: 2136 - Pages: 9
...FACTORS AFFECTING TEACHER MOTIVATION IN PUBLIC SECONDARY SCHOOLS IN THIKA WEST DISTRICT, KIAMBU COUNTY BY TERESA KEMUNTO NYAKUNDI A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF MASTER OF EDUCATION IN THE SCHOOL OF EDUCATION OF KENYATTA UNIVERSITY OCTOBER, 2012 DECLARATION This Research Project is my original work and has not been presented to any other university for a degree or any other award. Signature________________________________ Date__________________________ TERESA KEMUNTO NYAKUNDI REG. E55/CE/14342/2009 This Research Project has been submitted for examination with our approval as University Supervisors: Signature_______________________ Date ________________________ Prof. Grace Bunyi Associate Professor Department of Educational Management, Policy and Curriculum Studies, School of Education Kenyatta University Signature_______________________ Date ________________________ Dr. Libese Senior lecturer Department of Educational Management, Policy and Curriculum Studies, School of Education Kenyatta University ii DEDICATION I dedicate this study to my family. iii ACKNOWLEDGEMENT I acknowledge my supervisors Prof. Grace Bunyi and Dr. L.I Libese for their guidance during the writing of this project. If it were not for their guidance, this work could not have been a success. I also acknowledge teachers and principals of public secondary schools in Thika West District ...
Words: 18947 - Pages: 76
...With the rising popularity of shared capitalism in the United States, it is worthwhile to analyze the effects this trend and the workplace theories that correspond to it. The purpose of the paper is to show not only how forms of shared capitalism in the workplace can increase overall employee compensation, but how several labor theories relate and support the outcomes of shared capitalism. More specifically, three theories will be extrapolated and the outcomes of shared capitalism will follow each theory. First, expectancy theory will be explained and followed by its correlation to motivation and increased compensation. Second, equity theory will be explained and followed by the results of ESOPs. Finally, an explanation of efficiency wage theory will be provided and followed by the outcome of pay on shirking. Expectancy theory hypothesizes that a person decides to act in a certain way due to their motivation to choose a certain behavior rather than another behavior because of what they expect the outcome of their chosen behavior will be. Hence, an individual will choose the behavior with the most desirable result. Expectancy theory is a type of pay-for-performance theory that focuses on the needs for institutions to reward employees based off of their performance and to ensure that those rewards are desired by the employees. The motivational force of the employee is theorized to be a function that is multiple of three factors: expectancy (the perceived link between effort...
Words: 1084 - Pages: 5
...1.0 INTRODUCTION Employee is motivated to increase their job performances. The questions are what motivation is and why it is important to motivate employee in workplace? Over the last twenty decades, motivation is number one factor in increasing level of performance. It is operationally defined as inner force that drives individuals to accomplish personal and organizational goals. In other words, motivated employees are needed in our rapidly changing workplaces. This is because every individual or employee needs motivation and so do organization. Employee who is highly motivated will help him achieve his personal goals and increase his job satisfaction and productive. Islam R and Hj Ismail A.Z (2008), based the study of Employee motivation A Malaysian perspective, the purpose of the research paper is to identify the motivation factors of employees that working in the various Malaysian organization. Based on the finding, it indicate that factor such as gender, race, education, employment status and marital status were found some impact on motivation. This finding gives a guideline for manager to develop a motivation program for employees Somehow, the motivation helps in self development of employee and always received gain by working with a dynamic team. And similarly, motivation is important to a workplace in organization as motivation will lead to an optimistic and challenging attitude at work place. Always remember, the more employee are motivated, the more empowerment...
Words: 6650 - Pages: 27
...Designing and implementing a compensation package that rewards all staff according to performance, and succeeds in appealing to their individual motivations is an enormous challenge for any organisation. Some find it easier to simply pay a percentage increase to all staff, irrespective of their performance. A literature review was undertaken to determine both the current and historical views of performance management. A vast amount of material has been written in journal articles and textbooks. All point to the complexity of the issue and the apparent inability to find a solution that will suit all. For the last 100 years, HR specialists, psychologists and economists have been collaborating to try and develop a system which would have broad appeal for both staff and employers. Many theorists contributed to the discussions, asserting that individual motivations for pay were based on the theory of agency, goal, control, expectancy, or reinforcement. Performance management systems are necessary to enable companies to enable them to attract, retain and motivate the best calibre of employees, thereby assisting companies to achieve their organisational goals. However, different people are motivated by different things. Some by money or other tangible rewards and some by the pleasure of completing tasks, intangible rewards. These are also referred to as extrinsic and intrinsic motivations. Rewards systems can be developed based on...
Words: 5604 - Pages: 23
...stakeholders. Although between employer and employee there is an exchange of money for labor, intrinsic motivation is also a driving force which empowers and uplifts the employee to accomplish the required tasks more effectively. Extrinsic rewards such as bonus and commission are tangible rewards that companies bestow on employees who achieve set levels of performance (Resnick, 2009). According to (Deci, 2000), intrinsic motivations are intangible rewards such as inspiration and job satisfaction that employees get from doing meaningful work and performing it well. Hence, it is critical for organizations to examine and have an in depth understanding of these effects towards employee's motivation. 2. Effects contributing to extrinsic rewards Extrinsic rewards are appreciation through compensation which an organization pays to its employees for better performance, commitment and efficiency at work (Muhammad Ehsan Malik, 2010). Extrinsic reward is highly related to company policies and administration, supervision, interpersonal relationships, working conditions, salary status and security (Herzberg, 2003) (Gkorezis, 2008). Other example of extrinsic rewards are financial rewards, training, promotion or advancement opportunities within organization, the social climate, and physical working conditions, extra vacation time (O'Driscoll, 1999) (Panagiotis Gkorezis, 2008) (Resnick, 2009). (Herzberg, 2003) proposed two factor theory of motivation, hygiene factors are extrinsic factors that...
Words: 3619 - Pages: 15
...Factors of Motivation & Impact of Job Satisfaction on Organizational Commitment [pic] ACKNOWLEDGEMENTS “If you take care of your employees, your employees will take care of the organization & its customers over a period of time”. These are the words that have inspired us to conduct the research on the effect of employee motivation on organizational commitment. We shall be failing in our duty, if we do not record our gratitude to all those who have helped us & co-operated with us to pursuit this project. We would like to thank Prof. Kavita Lagate for her excellent sessions on Research Methodology which helped us to understand the various aspects of the subject & the project. Further by giving us an opportunity to carry out this research & present this research report under her guidance has enabled us to understand the concept of making a research report. CONTENTS Abstract………………………………………………………………………………………4 Introduction………………………………………………………………………………….5 Objectives of the Study …………………………………………………………………….6 Previous Research…………………………………………………………………………...7 Literature Review…..……………………………………………………………………….9 Research Methodology…………………………………………………………………….22 Data Collection & Analysis…………………………………………………......................25 Conclusion…………………………………………………………………………………..28 Direction for Future Research……………………………………………………………...
Words: 7991 - Pages: 32
...yTHE IMPORTANCE OF PAY IN EMPLOYEE MOTIVATION: DISCREPANCIES BETWEEN WHAT PEOPLE SAY AND WHAT THEY DO Sara L. Rynes, Barry Gerhart, and Kathleen A. Minette A majority of human resources professionals appear to believe that employees are likely to overreport the importance of pay in employee surveys. However, research suggests the opposite is actually true. We review evidence showing the discrepancies between what people say and do with respect to pay. We then discuss why pay is likely to be such an important general motivator, as well as a variety of reasons why managers might underestimate its importance. We note that pay is not equally important in all situations or to all individuals, and identify circumstances under which pay is likely to be more (or less) important to employees. We close with recommendations for implementing research findings with respect to pay and suggestions for evaluating pay systems. © 2004 Wiley Periodicals, Inc. It is easy to overestimate the frequency with which adults actually go to the opera and underestimate the frequency with which they watch TV cartoons on Saturday mornings, based on their self-reports. (Nunnally & Bernstein, 1994, p. 383) Rynes, Colbert, and Brown (2002) presented the following statement to 959 members of the Society for Human Resource Management (SHRM): “Surveys that directly ask employees how important pay is to them are likely to overestimate pay’s true importance in actual decisions” (p. 158). If our interpretation...
Words: 9177 - Pages: 37
...people. The current role that I hold in the company is Route Sales Representative (RSR). This role consists of what they coin the “heart of the company,” and generates a major share of the company’s revenue. An RSR’s position consists of selling merchandise to the customer, delivering the product, stocking of the product as well as customer service. During the last 10 years the company has changed the pay structure that determines the compensation that each RSR receives. In doing this they have also increased the workload and amount of expectations that have been placed on the shoulders of the employees. During all of the events that were involved with the pay changes, the morale and drive of the employees continued to drop. On a daily basis you can walk into the office and see an obvious lack of interest in the day-to-day operations, growing lack of concern in increased duties or committee involvement, and an obvious decrease in motivation. Language such as: “wish I wasn’t here,” “this place is beating me up,” “this isn’t what I get paid for,” and “they don’t pay me enough to do this” are all voices...
Words: 5035 - Pages: 21
