Incentive, Recognition, and Reward Systems...

Incentive, Recognition, and Reward Systems Incentive, recognition, and reward systems are often referred as ‘incentive systems’ in short. These systems are developed on the things which can attract the employees’ attention and stimulate them to work more efficiently. These systems are intended to achieve some specific change in the employees’ behaviour and aim at improving the overall performance of the employees and hence the organization by linking the interests of the employees to those of the organization. They are developed to make the employees’ performance more effective within the environment under which the organization is functioning. They are elaborated based on the numerous ways of providing supplementary compensation in the form of fringe benefits which are based upon equity and efficiency. There are several definitions for incentive systems. Some of these definitions are described here. In one of the definition, incentive systems are defined as ‘variable rewards granted according to variations in the achievement of specific results’. In another definition, ‘incentive systems are systems of payment emphasizing the point of motivation, which is, the imparting of incentives to the employees for higher production and productivity’. In yet other definition ‘incentive systems constitute monetary incentives which are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present and targeted results’. The primary purpose of the incentive systems is to build a workforce of the employees in the organization which is not only motivated but also effective, efficient and accountable as well. Employees in the organization are geared to take up challenging tasks besides giving a healthy output. Besides this primary purpose, incentive systems result into the improvements in the work culture of the organization by (i) creating a positive...

Employee Engagement

Employee Engagement An organization is always in the need to successfully understand and use the employees’ talents, knowledge, skills, and vigour. Employee engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. It is a workplace approach resulting in the right conditions for all members of an organization to give their best each day, committed to their organization’s goals and values, and motivated to contribute to organizational success with an enhanced sense of their own well-being. There are four main sub-concepts within the term employee engagement. These are (i) ‘needs satisfying’ approach, in which engagement is the expression of one’s preferred self in task behaviours, (ii) ‘burnout antithesis’ approach, in which energy, involvement, efficacy are presented as the opposites of established ‘burnout’ concepts consisting of exhaustion, pessimism, and lack of accomplishment, (iii) satisfaction-engagement approach, in which engagement is a more technical version of job satisfaction, and (iv) the multi-dimensional approach, in which a clear distinction is maintained between job and organizational engagement, normally with the primary focus on antecedents and consequents to the role performance rather than the organizational identification. Employee engagement is defined by William Kahn as ‘the harnessing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances’. It is translating employee potential into employee performance and organizational success. It can also be defined as a set of positive attitudes and behaviours of the employees enabling their high job performance of a kind which is in tune with the organization’s mission. An engaged employee is defined as one who is fully absorbed by and enthusiastic about his work and so takes positive action to further the organization’s reputation...

Rewards and Incentives...

Rewards and Incentives One effective way of motivating employees is to provide rewards and incentives for their excellent performance and also for recognition of a job well done. Sometimes management in several organizations forgets these tools since it is felt by them that employees are paid the wages to do a good job. Management of these organizations should keep in mind that employees respond to recognition for good performance. This recognition can be given in the form of either rewards or incentives or both. These recognitions can be given in monetary as well as in non monetary form. The tools of rewards and incentives are used by the management of several organizations to motivate employees for carrying out of a task, for learning of new skills and for changing of behaviour patterns. Though the terms ‘rewards’ and ‘incentives’ are used for the purpose of motivating employees, yet both the terms are distinct terms. The distinction between rewards and incentives is sometimes get blurred and people generally can think that the two terms are one and the same. However this is not the case – far from it in fact. A reward is something that celebrates success once an action has been tried or completed. It is a thing that is given to an employee in recognition of service, effort, good behaviour, and/or achievement. It is something which is actually given to an employee after his effort or achievement. On the other hand an incentive is something that motivates an employee to perform an action. It is a thing that encourages the employee to do something. In fact incentive is a motivating factor for an employee to exceed expectations. Employee rewards and incentives can both be very effective motivators when used appropriately. In case they...

Motivation and rewards...

Motivation and rewards In the present day environment an organization is highly dependent on the work motivation level of its employees. Motivated employees are crucial for the success of the organization. The organization can reach some level of success without highly motivated employees but it rarely achieves its full potential. Employees being human need to be rewarded and encouraged for their efforts. Motivation and reward has a strong link. It is therefore necessary for the organization to find out what motivates its employees so that it can suitably plan a reward system and gain better results. The right combination of material and immaterial rewards can boost up the work motivation of the employees and enhanced their commitment to the company. What is motivation Motivation is defined as the desire to achieve beyond expectations. It is driven by internal rather than external factors. It means to be involved in a continuous striving for improvement. It is a psychological process that results from the interaction of the employees with the work environment and is characterized by the willingness of the employees to increase their work effort in order to achieve a specific need or desire they hold. Motivation consists of the following three components: Direction –  What an employee trying to do Effort – How hard the employee is trying Persistence – How long the employee keeps on trying. The process of motivation is shown in Fig.1. Fig 1 Process of motivation As seen in the Fig 1, motivation is initiated by the conscious or unconscious recognition of unsatisfied needs. These needs create wants, which in turn become desire to achieve or obtain something. In order to satisfy needs and wants, goals are created and behaviour is selected to achieve the goals. If the goal is...