11 pages/≈3025 words
Business & Marketing
Motivates Employees (Essay Sample)
HOW TO MOTIVATES EMPLOYEESsource..
Understanding what motivates employees is necessary in all stages of the management (Berger & Berger, 1999). Motivation is mainly associated with reward, and it is usually recognized that reward system and management remains central in the regulation of employee relationship. The reward management system often varies in different organization and come in concrete forms including tangible or intangible, monetary or non monetary, and psychological or physical. The incentives are offered to the workforce as compensation in a view to appreciate their productive efforts. An effective and productive rewarding system serves as key strategic purposes of motivating, retaining, and attracting workers to achieve the set goals. A formalized and legalized corporate rewarding system is essential because it appeals to skilled and capable workforce to fill various positions in different organization. This method helps in retaining workers in the organization thus maintaining a firm and stable workforce using an acceptable turnover rate.
It is through an efficient reward system that employees are motivated to execute their responsibilities and duties to their personal capacities. Organizations that employ an efficient reward system that is exemplified by the organization chain of command structures of organization achieve their aim with ease. A rewarding system must incorporate a team based structure and methodology where employees have control over their responsibilities. For instance, employees have the discretion to make and exercise their own personal judgment while making decision thus feel as part of the organization. Managers are also expected to employ current technological advancements through the introduction of incentive programs for their employees. In U.S Ford is typical organization where the executive uses the internet for developing incentive programs for workers motivation and award selection. It is evidenced that online oriented workforce motivation has numerous benefit, which are advantageous for organization and employee.
In 1943, Maslow Abraham identified the Hierarchy of Needs Theory of human motivation. Maslow theory of needs is a framework mostly utilized by managers of different organization since it offers and presents sound insight in respect to human resource satisfaction and human behavior. Maslow’s theory classifies human needs into five categories, which include safety, esteem, self actualization, social, and physiological (Parker & McAdams & Zielinski, 2000). Human needs are arranged in ascending hierarchical order with self actualization needs at the top and psychological needs at the bottom. Maslow argues that lower level needs (psychological) needs are the most pressing and generic as their fulfillment and the requirement is essential for human survival. Maslow theory of needs is employed by organizations to fulfill worker’s needs by motivating to being productive. Maslow theory is applied by organization management in the reward system. When integrating Maslow theory of needs, managers should be cautious and consider that the safety and psychological needs are directly and indirectly fulfilled. Their fulfillment comes in the form of indirect factors i.e. compensation of salaries, benefits, and promotions. Psychological factors of reward focus on the self actualization, esteem, and social level of employee’s needs. It is worth noting that for reward to take effect three conditions must be met by employees. Employee’s performance expectancy, outcome expectancy, and reward valence must be greater than zero.
This paper addresses numerous management related topic that guides management in resolving internal related problems. Analysis of these questions (topics) is approached from a consultant point of view. The topics include leadership versus management, compensation philosophies: entitlement versus performance philosophy, performance management: linking rewards to performance, legal and effective performance appraisal processes, and keys to carrying out an effective appraisal interview.
Compensation Philosophies: Entitlement versus Performance Philosophy
Compensation philosophies have prevailed in most organizations for decades. The problem with compensation philosophies is that in the past, organizations adopted philosophies, which sounded like apple and motherhood. Presently, most compensation programs outline an intention to retain, motivate and attract top talents. The same programs are designed in a manner to align with shareholder and executive interests. Organizations are expected to accomplish objectives, but there lacks competitive advantage embracing similar compensation philosophies. An effective and efficient compensation philosophy should provide and outline guidance, which helps in driving strategy execution. Achieving this end requires the management grounding the philosophy in the organization’s mission to reflect the talent needs and strategic imperatives. Checking management related issues involve having philosophies that are consistent with the organization’s shared values, operating styles, culture, and compensation history. In the current organizational environment, resolving internal conflicts involve reexamination of organizational compensation philosophies. Managers should design programs after engaging in a robust discussion that weighs the compensation requirements of the employees. Developing and creating a compensation philosophy program, which is responsive to organizational strategies contributes to a productive and strong performance relationship. Further, a responsive compensation philosophy program makes workforce feel a sense of entitlement and encourages decision making process that is mutually agreed upon. A compensation philosophy that addresses emerging challenges must consider the total compensation to be positioned, the balance between long-term and annual focus, and the organization’s talent needs.
Hesketh (1996) is of the view that entitlement philosophy usually assumes that people who have worked for a longer time in the organization should have their salaries increased without considering performances differences. Issues that arise from this perception must be resolved by adopting compensation policy that reflects individual productive differences. Further, entitlement in compensation considers the seniority basis of the employees, raising pay scale annually, and interval comparison of industrial compensation. Compensation in most organizations must be related and linked to organizational strategies and objectives. The managers in the organization are expected to balance the costs and interests of the organization with employee’s expectations. Linking a compensation program with rewarding system must ensure there is legal compliance with rule and regulations, and the system derives performance in the organization. Compensation remains critical in the organization since it affects ways in, which people apply for the job in one company over the other. Therefore, the management should ensure that the rewarding system is reasonably competitive and offers a wide range of incentives so as to hire and keep a competitive labor force. It is imperative for the management to view compensation decision strategically since most organizations’ funds are used for compensation of different activities. In regard to the entitlement philosophy, the internal management often gives automatic pay increase to employee after a given period of years. The increment in most cases remains the same percentage and the internal management should consider rewarding employees who have committed their lives and efforts for a longer period. Entitlement philosophy helps the internal management to adjust employees’ benefits and incentives to match the current economic conditions (Lamb, 2008). By making such considerations, the management succeeds in avoid strikes and go-slow that often happen if the employee’s remuneration requests are ignored. Performance philosophy hardly guarantees increase in compensation following stuffs longer period of service in the organization. Rather, individual efforts serve the basis for compensation increase; thus, the internal management should strive towards motivating hard works, which in return yield to satisfactions and productivity.
Performance Management: Linking Rewards to Performance
Linking of rewards to performance may take three dimensions the unit performance, individual performance, and accomplishment of the company’s strategic direction. Employee’s compensation is linked and merged with their productivity and achievement (Decker & Sullivan, 1992). Therefore, it is imperative for the management to avoid constant wrangles and conflicts that may arise by employing a policy of level reward system. In the level rewards system, compensation or reward that takes the form of money, share, promotions, financial incentives, material good favors, and compliment. This should be awarded to individuals, team work, or the entire department. Attaining success at one level is not sufficient and therefore, the management must device mechanism through, which all the departments in the organization are made productive so as to promote the company’s growth and success. Level reward system, as used by the management helps in linking employee performances with their financial growth and personal careers. Professor Mackenzie a leading expert on organizational design and leadership defines 29 different leadership practices that are critical for the success of the organization. Competitive advantage is often attained once the organization aligns itself with its future goals and vision. A good, rewarding system that...
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