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...