MOTIVATION THROUGH REWARD SYSTEM

 

Armstrong (2010 as cited by Yamoah  (2013)  defines rewards systems as ― consisting of organization‘s integrated  policies,  procedures  and  practices  for  rewarding  employees  in  accordance  with  the  contribution, skills and competences and market values.

Organization must again ensure that employees put in high performance that enables productivity and in turn brings about rewards  which  can  be  financial  or  non-financial. Non-financial rewards include recognition, decision making roles, promotion, flexible working hours and company uniforms. (Robbins,2007). Armstrong,(2007) also point out that rewards can act as a goal that employees generally strive for, and as an instrument which provides valued outcomes. It is also a symbol which indicates the recipient‘s value to the organization and  can  act  as  a  general  reinforcement  because  it  is  associated  with  valued  feedback

Bates (2006) indicates, for money to motivate, merit pay rises must be at least seven percent of base pay for employees to perceive them as motivating and to catch anybody‘s attention.

 

Financial Compensation:

Armstrong,(2007)  indicated  that  employees  are  rewarded  in  accordance  with  their  contribution,  skill  and competence  and  their  market  worth.  The  importance  of  money  as  a  motivator  has  been  consistently downplayed  by  most  behavioral  scientists  like  Herzberg  who  point  out  the  value  of  challenging  jobs, feedback, cohesive work teams and other nonmonetary factors as stimulants to motivation. However, money is  the  crucial  incentive  to  work  motivation  because  it  is  the  vehicle  by  which  employees  can  purchase  the numerous  need-satisfying  things  they  desire  (Robbins  et  al.,2003).

It  has  the  supremacy  to  magnetize,  maintain  and motivate individuals towards higher performance. Frederick Taylor and his scientific management associate described  money  as  the  most  fundamental  factor  in  motivating  the  industrial  workers  to  attain  greater productivity  (Adeyinka  et  al;2007).To  use  salaries  as  a  motivator  effectively,  managers  must  consider salary  structures  which  should  include  importance  organization  attach  to  each  job,  payment  according  to performance, personal or special allowances ,fringe benefits, pensions and so on (Adeyinka et al., 2007).

 

Non-Financial Compensation:

Non-financial compensation is a motivation tool that can be used by organizations to enhance employees performance.  Lawler, (1969) suggest while financial compensation are significant in the short term, non-financial compensation in the form of meaningful rewards help to motivate in the long term. Again non-financial compensation  can  be  intrinsic  depending  on  the  individual  innate  being  to  achieve  and  be  duly recognized.  Woodruff  (2006)  cited  examples  of  non-financial  compensation  to  include  advancement, recognition, working environment, trust and available support that the organization can give to employees to help as a form of motivation. Non-financial compensation could also be flexible work hours long lunch time support, vacation days tickets, paid lunch (Storey 2003, p34).

The best non-monetary methods include making employees feel valued, making them feel connected and involved, providing opportunities for personal and professional growth, and promoting continuous learning (Singer & Goodrich, 2006).

 

It can make intrapersonal and interpersonal effects and influence on the relations inside and outside the organization (Hassan et al, 2010). Howard, (1997) stated that employees should be seen as assets to the organization rather than cost. Successful employee recognition programs that offer tangible rewards that people can imagine, receive and easily motivate people to their highest level of performance. This can be at a much lower cost than monetary rewards, (Sarvadi, 2005).

 

REFERENCES:

·         Armsrong Micheal.  (2006):  A Handbook on Human Resource Practice,10^th edition, Gopson Papers ltd,

·         Adeyinka et al., 2007:  Motivational Packages and Their Effect on Employee Performance in Ghana Education Service. Institute of Distance Learning, KNUST (CEMPA)

·         Bates (2006) (The Resource-based View of the Firm: Ten Years after 1991,‘ Journal of Management, 27, 6, 625–641

·         Hassan et al, 2010, The New Human Resource Management in the 21stcentury:  A Strategic View. Annual Conference of Innovation and Management, London, UK

·         Lawler, (1969) Organizational Behavior and Management. Burr Ridge Irwin.

·         Robbins et al.,2003, Organization Theory.  Structure, Design and Applications.  Englewood Cliffs: Patience Hall

·         Storey 2003, p34, Changing   Theories   of   Leadership   and   Leadership   Development, London: Routledge

·         Sarvadi, 2005, Character Not Charisma is the Critical Measure of Leadership Excellence. ‖ Journal of Leadership and Organizational Studies, 9(4): 45-55.

·         Singer & Goodrich, 2006, Job Satisfaction: Application, Assessment, Cause and Consequences.  USA, Sage Publications Inc

·         Woodruff (2006), What Motivates Employees According to Over 40years of Motivation Surveys. International Journal of Manpower, 18(3) p.263-280

·         Yamoah (2013), “Methods of Motivating:  Yesterday and Today ‖ Available onlinewww.academic.empria.edu. Retrieved 5/3/2014.