...Motivation and Reward Systems Reward system is an organization’s most essential instrument for building and sustaining motivation in the workplace. A reward system is defined as the informal and formal processes by which performance of the members of the organization is identified, assessed, and rewarded. Obviously, rewards that are connected particularly to performance have the strongest effect on improving employee performance and motivation. Performance-based rewards fulfill numerous functions and objectives in organizations. The main principles comprise the correlation between motivation and rewards (Griffin & Moorhead, 2011). In particular, organizations would like their members to perform well and, consequently, have to motivate them to do so. When the reward system is related to greater performance, employees will most likely be driven to exert greater effort to get those rewards. When that happens, employee motivation becomes strongly tied to the organization’s goals. Proponents of behavioral sciences have long promoted the value of reward systems, the methods by which managers distribute rewards based on performance, tenure, or other aspects (Yukl, 2009). Obviously, reward systems are essential because employees accomplish the tasks they are rewarded for and poorly perform those which do not have any reward. However, before initiating organizational change, the reward system must be examined to identify whether it will positively or negatively contribute...
Words: 1636 - Pages: 7
...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...
Words: 2596 - Pages: 11
...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...
Words: 2567 - Pages: 11
...deciding success or failure. Companies have motivation and reward systems in use though it is unlikely that two different companies can have the same type of motivation. When reward systems and motivation are in use, employees are likely to work more efficiently which can make other key staff members with perfect skills and high degrees of work performance to be attracted to that company. Reward system management refers to a framework of envisioning the formulation of various reward systems, which can boost a salesperson's motivation. Reward system and motivations are vital in company operational management. The motivation of employees is a psychological feature wherein employees are stimulated in order for them to behave in a given manner with the main goal of accomplishing some given organizational objectives. It is important that organizations motivate their employees so as to obtain the best from them. The level of motivation in the sales force needs to be higher to enable them to meet the sales aims efficiently. Central to motivation is offering the employees with what they need most from the work they are doing (Agarwal, 1998, p. 102). The more the manager can provide what the workers want, the more he or she should have expectations of obtaining what he or she wants, which includes service, quality, and productivity. A motivation practice and philosophy, which is positive leads to improved service, quality, and productivity. The motivation of employees leads to the gaining of...
Words: 2859 - Pages: 12
...Executive Summary This assignment is study about the Organisation Studies issue which is Organisation Rewards and Employees’ Motivation. In order to further study the issue, an interview section was held in Bayview Hotel Georgetown Penang. The Front Office Manager was selected as the respondent. The interviewee has given a lot of useful and credible information when commenting the employees’ motivation during the interview section. Throughout the interview section, the Bayview employees’ motivation level has shown positive effect towards the organisation. Meanwhile, the organisation is developing the current rewards system which helps increase the employees’ job performance in near future. The study case has brought out an important issue which is the motivation level among the employees has occupied a very important position in an organisation. It will lead to a positive working environment and increase the revenue of the company as the company rewards them according to their needs. 1.0 Introduction Bayview Hotel Georgetown Penang which formerly known as City Bayview Hotel Penang Malaysia is one of the member of Bayview International Hotels & Resorts in worldwide. The Founder and Chairman of Oriental Holdings Berhad (OHB) and Boon Siew groups of companies in both Malaysia and Singapore, the late Tan Sri Loh Boon siew, purchased a land parcel in the year 1978. A 40-rooms property was built along Batu Ferringhi Beach in Penang and named as Bayview Motel...
Words: 3934 - Pages: 16
...Introduction Rewards, Motivation and Job Satisfaction are important and significant variables to the organization success as it is an employee’s attitude towards their job. The higher the job satisfaction, the more the employees will hold a positive attitude towards their jobs. Similarly, the organization will have low turnover rate and better in talent retention. (Sarwar & Abugre, 2013) Therefore, an organization’s strategy is linked to job satisfaction of the employees as it has direct impact on productivity and profitability. (Khalid, et al., 2011) In many organizations, employee turnover is a major issue because of the cost involved with new hiring and training. The purpose of this study is to find out the relationship between job satisfaction and employees performance in Gas Pte Ltd. (Sarwar & Abugre, 2013) Chapter 2 – Literature Review In the past, the organizations provide a permanent guarantee for the job and employees will in return give the organizations their loyalty and their best performance. However, this is a dream now which show that the job satisfaction in the organization has changed over the years. Employees are more educated and highly trained in skill. They are able to perform their duties based on their capabilities to achieve the goals of the organization. As a result now, organizations should recognize what are the needs to motivate their employees to deliver their best to the organizations. (Zaidi & Abbas, 2011) 2.1 Rewards In today’s...
Words: 1921 - Pages: 8
...Introduction Rewards, Motivation and Job Satisfaction are important and significant variables to the organization success as it is an employee’s attitude towards their job. The higher the job satisfaction, the more the employees will hold a positive attitude towards their jobs. Similarly, the organization will have low turnover rate and better in talent retention. (Sarwar & Abugre, 2013) Therefore, an organization’s strategy is linked to job satisfaction of the employees as it has direct impact on productivity and profitability. (Khalid, et al., 2011) In many organizations, employee turnover is a major issue because of the cost involved with new hiring and training. The purpose of this study is to find out the relationship between job satisfaction and employees performance in Gas Pte Ltd. (Sarwar & Abugre, 2013) Chapter 2 – Literature Review In the past, the organizations provide a permanent guarantee for the job and employees will in return give the organizations their loyalty and their best performance. However, this is a dream now which show that the job satisfaction in the organization has changed over the years. Employees are more educated and highly trained in skill. They are able to perform their duties based on their capabilities to achieve the goals of the organization. As a result now, organizations should recognize what are the needs to motivate their employees to deliver their best to the organizations. (Zaidi & Abbas, 2011) 2.1 Rewards In today’s...
Words: 1921 - Pages: 8
...study investigating the effectiveness of intangible rewards on employees’ motivation level. We propose that age moderates the effectiveness of intangible rewards on increasing employees’ motivation in the workplace. Specifically, we suggest that Generation Y’s are relatively more intrinsically motivated than older generations. Given the strong positive relationship between rewards and motivation, there are many factors that influence an employee’s level of motivation. Motivation is defined as a person who is "hard" at work, one who "keeps at" his work and one who directs his behavior towards appropriate outcomes (Johns & Von Saks, 2011). Daft and Marcic (2008) has defined motivation as the force or forces that arouse enthusiasm and persistence to pursue a certain course of action. Rewards motivate people both intrinsically and extrinsically. Extrinsic rewards consist of monetary gains and job promotions, whereas intrinsic rewards comprise of meaningful work and work-life balance. Maslow's Hierarchy of Needs and Alderfer's ERG theory suggests that one will be motivated to be able to satisfy personal needs. Additionally, the Trinity Model is another method of classifying people’s needs –namely, into biological, psychological and spiritual aspects (Dahlgaard-Park, 2010). 2. Literature Gap and Importance of Study Much research conducted in various studies in the past has established the relationship between rewards and motivation. However, very few studies have been conducted with...
Words: 1242 - Pages: 5
...IMPACT OF REWARD SYSTEM ON EMPLOYEE MOTIVATION A QUANTITAVE STUDY OF GLOBAL COMPANIES Programme Code & Name: Session: Subject Code & Name: Assignment Title: Student’s Names & ID: o Nguyen Vu Minh An o Li Jia o Dai Hairong o Hue Shin Yen o Zhangshan o Daiwei Class Section: Lecturer: Submission Date: I13003385 I12002184 I12002129 I13003254 I12002130 I12002099 5A1 Ms. Yalini Easvaralingam 12th Aug, 2013 MBADI–Master of Business Administration May 2013 MGT6208 – Statistic and Decision Analysis Group Assignment 1 Group assignment MGT Table of Contents ABSTRACT ......................................................................................................................... 3 CHAPTER 1: INDTRODUCTION ....................................................................................... 3 1.1 Problem statement ........................................................................................................... 3 1.2 Research Objectives ........................................................................................................ 5 CHAPTER 2: LITERATURE REVIEW ............................................................................... 5 2.1 Employee motivation ...................................................................................................... 5 2.2 Reward management system ........................................................................................... 7 2.3 Effects of financial and non-financial reward system...
Words: 7225 - Pages: 29
...success of business is closely influenced by the motivation and professional capacity of their workforces. Accordingly, companies are faced with the challenge of increasing the level of employee commitment, job satisfaction and motivation (Greene, 2001). In this regard, it is important for companies to take into consideration the impact of employee needs, morale and expectations and to negotiate appropriate work arrangements for motivating employees as part of performance recognition. The following paper presents a discussion on the importance of employee motivation in the workplace. The discussion is mainly based on literature review and points that employee motivation is necessary for improved work performance. The paper has explored the important contributing played by work-life balance and financial incentives in improving employee motivation. The research indicates that the two factors foster loyalty by employees, increased performance and commitment, which are essential indications of motivation. The concept of Employee Motivation and Rewards Most discussions of motivation begin with the concept of individual needs – the unfulfilled physiological or psychological desires of an individual. Content theories of motivation use individual needs to explain the behaviours and attitudes of people at work. The basic logic is straightforward. People have needs. They engage in behaviours to obtain extrinsic and intrinsic regards rewards to satisfy needs (Schermerhorn et al, 2011)...
Words: 2388 - Pages: 10
...increase employee motivation using rewards can sometimes be a daunting task for managers. But it shouldn't be. When armed with the right information and the proper techniques, managers can be experts at enhancing motivation using rewards in no time. Mangers who are developing, revamping or currently implementing an employee rewards program should consider these 20 tips: 1. Involve all employees in the development, implementation and revision of rewards programs Involving all employees (or representatives from different positions) will encourage communication between employees and management about the rewards process. It will also ensure that both employees and upper management are onboard with the reward system. 2. Ensure that employees view the rewards as worth the effort Including employees in the reward program development process is critical to ensuring that they value the rewards and see them as worth the effort. Managers should value employee input and select rewards accordingly. Employees who see the rewards as worth the effort will be more motivated to work hard to obtain them. 3. Make sure that employees understand how to earn the rewards Managers should clearly delineate how employees can earn rewards. When employees have a comprehensive understanding of what is expected of them, they will be more capable of achieving performance standards. 4. Set reasonable and transparent performance standards for rewards Employees must see the rewards as attainable...
Words: 286 - Pages: 2
...Essay Question: ‘’The one best way to increase work motivation for an organization is through employee reward schemes’’. Discuss. The main purpose for us to wake up every morning is because of certain responsibilities. This could be anything from cleaning your room to working in a bank or even dropping the kids off at school. We all have them regardless of age, ethnicity, gender, race, religion and other factors. However, the one obligation that is compulsory for each and every individual after a certain age is to earn a living, by the means of working. We all get to a certain stage in our lives when we have to be independent and start supporting ourselves financially and that can only be achieved if we go to work and complete the tasks assigned efficiently. Whether we are doing something that we are passionate about or if it is a nine to five job that people have just to make ends meet or even if it is something in the primary and secondary sector, they all need motivation. Employee motivation plays a key role in management both practically and theoretically. The basic concept of rewarding people is through reward schemes. Even if the work is something an individual is obsessive about, without rewards, pay and other factors the person would lose their commitment towards that particular job. Though there are various different types of ways to motivate employees besides these, they have got their own advantages and disadvantages. Rewarding systems...
Words: 1268 - Pages: 6
... | |How to best reward employees? | | | | | |Yuling Zhang(19041245) | |2010/4/17 | |Understanding and Managing Organisations | Contents Contents 2 Introduction: 3 Total Reward and theories: 4 Intrinsic rewards more important: 5 The impacts of extrinsic rewards on intrinsic motivation: 6 Cognitive evaluation theory (CET) in motivational approach: 6 Self-perception theory in attributional approach 7 Behavioural approach: 7 Performance management, high performance working and reward strategy: 8 Other noteworthy points when rewarding: 9 Case study: 10 Conclusion: 11 Reference: 12 How to best reward the employees? Introduction: Given that people is...
Words: 3597 - Pages: 15
...RESEARCH IN BUSINESS A STUDY ON THE IMPACT OF REWARDS ON EMPLOYEE MOTIVATION IN THE TELECOMMUNICATION SECTOR OF PAKISTAN Farheen B. Zaidi 1, Zahra Abbas 2 JULY 2011 VOL 3, NO 3 Abstract A good reward system is necessary to motivate the employees of an organization. This study was conducted in order to investigate the impact of rewards on the motivational level of employees of telecommunication sector of Pakistan. The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework. A total of 292 questionnaires were returned fully complete. The research study showed that there exists a strong positive relationship in rewards and motivation among the employees. It was concluded that monetary rewards have greater impact on motivation of employees than the non-monetary rewards. Significant differences in rewards offered to employees and motivation level were found in the analysis of comparison of means with respect to gender, age group, marital status, working duration in the organization and salary. Keywords— Focus, Determination, Monetary Rewards, Non-Monetary Rewards, Motivation, Rewards . INTRODUCTION "Motivation is the art of getting people to do what you want them to do because they want to do it." (Eisenhower) Rewards whether monetary or non-monetary can be used...
Words: 5001 - Pages: 21
...* Financial Rewards at MetLife Alico * Presented by : * * Outline I. Introduction Overview of the Insurance Industry Company Profile I. Motivation General Overview Financial Rewards II. Financial Rewards at MetLife Alico III. Analysis of findings IV. Conclusions and Recommendations V. Appendix I- Introduction * Introduction The Insurance Industry in Lebanon * Open & liberal market * 60 insurance companies * Top 10 companies account for 60% of total premiums * Gross premiums per operating company have improved between 1997 and 2002 * Introduction * Life insurance sector is very developed relative to other Arab countries * Top 5 insurance companies: 1. - Arope Insurance 2. - Mednet Liban 3. - Libano- Suisse 4. - MedGulf 5. - MetLife Alico * Introduction Alico’s Profile: * American Life Insurance Company (Alico) is one of the largest leading insurance companies in the world * 1921: Established in Shanghai – China * 1960’s: Moved to Wilmmengtion- Delaware * 1980`s: Operating in Latin America , Middle East and Europe * Aim: “for market leadership and profitable growth, employing local talent and empowering individuals to perform at very high levels.” * Introduction Alico in Lebanon : * Leading life insurance company since 1953 * Main office...
Words: 822 - Pages: 4
