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Motivation and Reward Systems

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Motivation and Reward Systems Motivation and reward systems are two very important concepts in an organization that managers should understand. Employees that are positively motivated will have higher levels of productivity; whereas employees with lower levels of motivation and job satisfaction may produce less. “Motivation can be achieved through various means, including equality, positive reinforcement, discipline and punishment among others” (Smith, 2010). Managers should be aware of their employees’ needs in order to fulfill them. There are some motivational theories that can help managers identify needs and how to motivate their employees effectively. Some of these motivational theories are based on employee drives, others are based on employee needs, and others are based on behavior. However, the major source of motivation is reward systems. Employees can be rewarded in many ways; some include incentives that are linked with performance, wage incentives, profit sharing, gain sharing, and skill-base pay. Work motivation is defined by Newstrom (2011) as “the result of a set of internal and external forces that cause an employee to choose an appropriate course of action and engage in certain behaviors.” The motivation and the behavior are expected to be positive and towards achieving organizational goals; managers should be interested in three elements of the behavior: the direction, level of effort, and persistence of the behavior (Newstrom, 2011). To make and maintain employees motivated managers should pay attention and be aware of the needs and drives of the employees. Drives are strong desires for something and people “tend to develop certain emotional drives as a product of the cultural environment in which they live” (Newstrom, 2011). David C. McClelland “developed a classification scheme highlighting three of the more dominant drives and pointed

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