Organizational Behavior and Employee Motivation
Discuss about the Organizational Behaviour for System and Supportive.
The purpose of this essay is to analyze how money as well as other financial rewards are the main part of employment relationship and can be utilized effectively to encourage employees. The study provides in depth analysis about organizational behavior in the workplace. The organizations in today’s world reward their employees in order to encourage and satisfy them in work, so that it enhances the financial performance of the enterprise (Wagner and Hollenbeck 2014). The financial reward systems are often adopted within the enterprise as one of the vital management tools for enhancing employment relationship. This contributes to enterprise effectiveness by affecting employee’s behavior and encouraging them at the work. In some cases, money or financial rewards might not motivate some employees, as they prefer recognition or non- financial rewards. This essay however highlights on the pros and cons of this argument.
Organizational Behavior indicates the study, which investigates the effect that individuals and groups have on their behavior for the objective of applying the knowledge towards enhancing enterprise effectiveness (Greenberg 2013). This systematically studies the way employees are encouraged and leader’s behavior impact the employees morale as well as production. Several factors motivate employees and thus directly correlates to their satisfaction. These factors include- workplace culture, leadership style, financial or non- financial rewards and other workplace features. However, it is crucial for the leaders and managers of the enterprise to comprehend these forces, which drive employees to work together, and motivates them in work. There are various management models of enterprise behavior such as – autocratic, custodial, system, supportive , collegial.
According to the view known as economic man approach, money or financial reward refers to what encourages the laborers the most and improves their performance in work. It depicts that if an individual perform in a specific way that outcomes in financial reward, then the probability of repeating their performance increases. In case if the employees performance is overlooked and is followed by punishment, this behavior of the employees is not likely to be repeated. This type of the motivation strategy is effective only under few conditions of the organization. Moreover, this strategy is mainly grounded on the external controls and thereby does not take into account the human factors. On the contrary, this type of approach taken by the enterprise management fails in valuing that formal control system is mainly affected by informal relationship, which occurs among the employees. Sajuyigbe, Olaoye and Adeyemi (2013) opines that the result of utilizing money or financial rewards as motivator of employees is based on the circumstances, individuals mind- set, values and their preferences for certain kinds of non- economic or economic rewards. Chikukwa (2017) suggests that there are few theories such as Taylor’s theory, Expectancy theory, Needs theory that aims to explains about the financial reward as one of the factor that builds employment relationship.
Economic Man Approach and Financial Rewards
Recent evidences reflect that most of the companies reward their employees based on their seniority, membership, job status, performance and competencies. This reflects the supportive management framework of organizational behavior in workplace (Luthans, Luthans and Luthans 2015). This model seeks in understanding what encourages employees as well as focuses on the things that inspire them. The managers of the enterprise support the employees by providing them rewards based on their performance and work towards establishing own goals. Membership based financial rewards usually attract the applicants while seniority based financial rewards declines turnover rate in the enterprise. Yousaf et al. (2014) cites that these rewards mainly tends to demotivate turnover among the employees with lowest performance. Financial rewards or money that is based on job status generally tries to maintain equity as well as encourage workers to compete for the promotions. Thus, they try to encourage bureaucratic hierarchy as well as aid workers to compete as well as hoard resources. Now- a- days financial rewards that are based on competency are becoming highly popular as they tends to enhance flexibility of laborforce and are also steady with emerging employability idea. Therefore, they apt to be estimated and might outcome in high cost as workers spend huge time in learning skills and knowledge.
The researchers have argued that employees becomes demotivated if the reward system is not proper. Ineffective reward system adversely influences the organizational behavior. The employees in the organization must not expect identification for the routine performance. Instead, the company’s behavior might become target –oriented if the manages link financial rewards to unusual effort as well as effectiveness. (Luthans, Luthans and Luthans 2015) This in turn adversely influences the performance of employees and thus leads to negative enterprise behaviour. For instance, even though the managers in Woolworths try to create positive organization behavior by improving reward system, it sometimes creates challenges for the managers if the employees become dissatisfied with their bonuses or other financial rewards.
Malik, Butt and Choi (2015) affirms that the money or financial rewards are prerequisite in employment relationship owing to its instrumental value. Several empirical evidence recommends that rewards are the most crucial factors that affects workers motivation as compared to other rewards. Bonuses, allowances and other financial rewards based on individual performance are some of the preferred forms of employee’s motivation that existed over the years. Several enterprises are shifting to the team-based rewards including gain sharing plans and also to enterprise rewards including profit sharing, stock options and ESOPs (employees stock ownership plans). As per Ibrar and Khan (2015), stock options and ESOPs create ownership culture but workers often perceive weak association between the enterprise rewards and individual performance. Several facts reflect that different enterprises use different types of reward systems based on their accomplishment and cost factor.
Types of Financial Rewards in Organizations
Dobre (2017) opines that employees motivation has direct relation with organizational effectiveness. Few researchers argue with the fact that financial or extrinsic rewards mainly contribute to enterprise effectiveness through affecting workers behavior. Moreover, if an enterprise fails to reward their employees properly, it finds it difficult to maintain competitive advantage as it adversely influences enterprise effectiveness. Jin and Huang, (2014) concurs that a well-rewarded employees is highly productive and this contributes to organization effectiveness. The reason behind this is that motivated workers works hard, which enables the enterprise to attain targets of business.
Shields et al. (2015) suggests that as financial rewards have several limitations, it is necessary to improve reward effectiveness. The leaders of the enterprise must ensure that financial rewards are connected to the employees work performance. Few researchers argue that the enterprise using financial rewards to motivate employees can have adverse impact on the business. One of the drawbacks of encouraging employees with money or financial rewards is that it is often inconsistent. This means that if the enterprise performs poorly in a financial year, it might not have huge amount to pay bonuses despite good performance of employees. However, if the employees receive less bonus, then it might hurt their morale. This in turn leads to less productivity and poor performance in work. Another drawback of providing financial rewards to motivate employees is that it often leads to burn out (Jin and Huang 2014). As the employees work for long hours in effort to enhance their chances of attaining rewards, this might cause them to feel overworked. This overwork can create several problems such as less productivity and low morale. As a result, this adversely affects the financial performance of the organization.
Conclusion
From the above discussion, it can be concluded that the enterprise motivating employees with money or financial rewards might have positive as well as negative impact on the business. Financial rewards such as bonus, incentives enhances the satisfaction level of the employees, which in turn builds employment relationship and motivates them to stay with the company for longer term. Nevertheless, the employers choosing to offer financial rewards or money to the employee’s might also negatively affect the business performance. This is because if the employees are not satisfied with the rewards, then it might demotivate them and lower their morale in their work. Overall, this factor motivating employees directly influences the organizational behavior.
References
Chikukwa, T., 2017. The impact of extrinsic rewards on employee motivation and organisational effectiveness: a case study of ZFC Limited in Zimbabwe (Doctoral dissertation).
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of Applied Socio-Economic Research, 5(1).
Greenberg, J. ed., 2013. Organizational behavior: The state of the science. Routledge.
Ibrar, M. and Khan, O., 2015. The impact of reward on employee performance (a case study of Malakand Private School). International Letters of Social and Humanistic Sciences, 52, pp.95-103.
Jin, L. and Huang, Y., 2014. When giving money does not work: The differential effects of monetary versus in-kind rewards in referral reward programs. International Journal of Research in Marketing, 31(1), pp.107-116.
Luthans, F., Luthans, B.C. and Luthans, K.W., 2015. Organizational Behavior: An EvidenceBased Approach. IAP.
Malik, M.A.R., Butt, A.N. and Choi, J.N., 2015. Rewards and employee creative performance: Moderating effects of creative self?efficacy, reward importance, and locus of control. Journal of Organizational Behavior, 36(1), pp.59-74.
Sajuyigbe, A.S., Olaoye, B.O. and Adeyemi, M.A., 2013. Impact of reward on employees performance in a selected manufacturing companies in Ibadan, Oyo state, Nigeria. International Journal of Arts and Commerce, 2(2), pp.27-32.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive advantage. Routledge.
Yousaf, S., Latif, M., Aslam, S. and Saddiqui, A., 2014. Impact of financial and non-financial rewards on employee motivation. Middle-East journal of scientific research, 21(10), pp.1776-1786.
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