write a eassy on in developing approaches to motivate employess,managers should focus mainly on financial rewards
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Answer:
Although it seems to be easy to manage people performances at work when you know their abilities and KSA`s, It can always be difficult when you actually drop into the real time scenario. This is because each task, competencies and knowledge is different from the other individual in a work place and moreover any individuals performance is not uniform all over his/her career. The level of performances is dependent of several factors such as stress, colleagues, family, hours of work, holidays, and recognition for work etc.
So let’s consider performance in terms of recognition given to the employees for the efforts they put in. So, any individual requires some of kind of recognition or reward based on their work to motivate them and perform well.
Reward Systems: According to Aguinis (2008) this is a set of mechanisms for distributing both tangible and intangible returns as part of an employment relationship.
When we consider the roles of reward system in managing performances of the staff in an organisation, it always tend be both positive and negative. The main motive of the reward system is to motivate people and reward them for service to the organisation expecting equal results from their performances that ultimately influence the overall organisation`s performance.
Armstrong (2002) says that the HR personnel concerned with reward management may spend much of their time making use of the existing reward processes but according to him the most important and challenging task is to continuously improve it and tailor it according to the strategies of the organization. That means using the existing reward policies does not make adequate benefits to the company but the way you manage the then existing policies according to current situation is what is required from the HR specialists. He also adds that if the Business strategy changes then the HR strategy must change and reward system must change accordingly.
Organisations need a reward management system that is strategic for staff and satisfies four main areas: compensation, benefits, credit and appreciation. The setback alongside this in many companies nowadays is twofold i.e. They are lacking at least one of the above elements (generally recognition and/or appreciation), and the areas that are focussed aren’t clearly aligned with company’s other strategies.
A successful company has to recognise and reward two main types of its employee activity performance and behaviour. Of two former one is the easiest to identify as you are just assigning tasks and judging on the outcomes. It is like rewarding the top 10 sales achievers in a given time.
Second being rewarding based on behaviour is very challenging the other as it is difficult to assess the behaviour and reward. It is like choosing between individual`s innovation or the amount of time they’re sitting at a desk. There’s clearly a significant difference between two activities.
When companies think about the reward management, they tend to put compensation on top list. The correct strategy has to always contain a compensation plan that clearly links to the objectives of the company for that particular time. Longer term rewards can be offered to some key personnel. This often includes a form of equity ownership.
Companies that don’t exceed the compensation levels provided by their competitors face have difficulties in retaining key personnel.
Anyway the significance of recognition and appreciation as key elements of successful strategic reward system cannot be disregarded. These two seldom get attention they are supposed to but this is amazing as they are the low cost/high return ingredients. All workers in a company would be keen to know if they are doing good or bad, so it is very useful to make them aware of their performance.
Acknowledgement of an individual for their specific goals achieved and for their actions shown is called recognition. While appreciation means showing gratitude to someone for their actions. Expressing recognition combined with appreciation in the form of thanks in front of all the staff by citing examples of their actions that deserved appreciation.