Effect of Monetary Rewards on Employee Performance
The organizational behaviour based theory is mainly related to different types of behaviour that are depicted by the employees in an organization. The interaction which takes place among the employees and management of an organization will thereby be able to affect the ways by which employees behave. The research that is related to behaviour of employees in the organizations, the work groups and the behaviour of the organizations as a whole. The analysis of organizational behaviour is thereby done based on the individual levels and the group levels as well (Punnett 2015).
The rewards and the incentives that are provided to employees in the organization are based on the ways by which they are able to perform. These rewards and incentives are also able to create high levels of motivation for the employees. The levels of the performance of employees are totally improved with the help of different types of incentives and financial rewards. The discussion which will be conducted in the essay will be mainly based on the various advantages and the disadvantages that are provided by the monetary benefits in an effective manner (Pentland and Hærem 2015).
According to, TYLER (2014), the efficiency based levels of employees can be improved by providing effective types of monetary rewards which are offered to them. The different rewards and incentives that are offered to the employees can play an important role in the development of employee performance and the environment in the workplace as well. The incentives that are provided to the employees are mainly based on the productivity and efficiency. The levels of production of employees need to be made optimal by offering the monetary rewards in an effective manner. Friendly competition based levels of the company can thereby increase with the help of proper incentives. Monetary rewards play a significant role in increasing motivation levels of the employees in an effective way. The levels of motivation are also helpful in improving profitability of the organization. The factors that are related to monetary motivation are based in many advantages and disadvantages.
According to, Menges et al. (2017), motivation which is provided to the employees are of many types which can help in increasing the levels of productivity in an effective manner. Money has always played an important in different organizations all over the world. The various advantages that are provided to the employees with the help of monetary motivation are as follows,
Effectiveness – The effectiveness of the employees can be improved by providing them with effective monetary rewards. The organizations are further able to increase the productivity and revenues in an efficient manner. The most important way by which the company is able to affect the revenues of the company is based on the monetary rewards.
Broad options – The modern organizations have many different options that can be used in effective manner for providing monetary rewards to the employees who are highly productive. The monetary based rewards can be provided by the organization by the usage different types of gift certificates, special bonuses and the cash related rewards as well. The motivation levels are thereby capable of increasing the ways by which employees can contribute to the goals and objectives of the company in an effective manner. The organizations can thereby change the ways by which they provide the rewards to employees (Moradi, Shekarchizadeh and Nili 2015).
Advantages of Monetary Motivation
Far-reaching – The different types of demographics of the organization are affected in a huge manner with the help of monetary rewards and benefits. These rewards are thereby able to effect all the employees from lowest levels to the CEO. The most important advantage that has helped in providing motivation to employees is based on the ways by which their productivity is increased in an effective manner (Luthans, Luthans and Luthans 2015).
As argued by, Lazaroiu, G., (2015), the different types of monetary benefits which are provide to employees have major disadvantages to the organizations which further include,
The levels of importance that is provided to monetary benefits to the employees have been able to reduce the different types of benefits which can be provided to them in an effective manner. The different types of non-monetary benefits also form an important part of the successful operations of different organizations.
The organizations are sometimes unable to offer the monetary benefits to employees which can also cause different effects on productivity of the employees. The inability of the firm to provide different types of monetary benefits to the employees can further cause high levels of demotivation among the employees.
The monetary rewards which are provided to the employees can further cause high levels of inequality among them. The different levels of fiscal incentives can play an important role in providing effective incentives to the employees in the different modern organizations (Hui, Lee and Wang 2015).
The development of a fair process which can be developed by the company will play an important role in the ways by which the levels of motivation of employees can be increased. The implementation based process of the company related to different incentives that are provided to them can be able to decide the motivation levels. Management also needs to manage the proper development of plans that can help in providing the monetary benefits and incentives (Lu 2014).
As discussed by, Güss, Burger and Dörner (2017), the motivational theory named Maslow’s Hierarchy of needs is related to the psychology which is based on the effective fulfilment of the needs of different employees in an efficient manner. The different needs which are a part of hierarchy are required to be satisfied by the organization so that motivation level can be increased. The needs of employees based on Maslow’s Hierarchy theory mainly include, physiological needs, the safety related needs, love and belonging related needs, self-esteem based needs and the self-actualization needs.
Physiological needs – The different needs that are related to the basic biological requirements of the employees thereby include, air, food, drink, warmth and clothing. The satisfaction and fulfilment of different needs is quite essential for human body in order to function in an optimal way. The needs which important for the company to be fulfilled so that next stages of Maslow’s Hierarchy can be reached in an effective manner. The different types of monetary benefits are able to play a major role in fulfilment of needs (Colquitt and Zipay 2015).
Disadvantages of Monetary Motivation
Safety needs – The safety based needs of the employees can thereby be fulfilled with the help of the protection that is provided by the organizations. The major areas of these needs are based on order, elements, stability, law and security. The safety needs are thereby not based on different monetary benefits that are provided to employees by the organizations (Hui, Lee and Wang 2015).
Love and belongingness based needs – The third stage of Maslow’s Hierarchy of needs is based on the interpersonal relationships that has been developed by the employees within the employees and the management. The relationships that have been developed by the employees with the others in the organizations are thereby not based on the monetary benefits that are provided to the employees. The monetary benefits do not play any role in the ways by which the employees are able to create effective relationships (Hogg and van Knippenberg 2017).
Esteem needs – The self-esteem related needs of various employees are divided into two parts which are, esteem for oneself and the ways by which employees desire for the reputation which has been developed among the others. The needs for respect of the employees can be fulfilled in an effective manner with the help of the management of an organization. The monetary benefits are able to affect the self-esteem that has been developed by the employees (De Wit et al. 2017).
Self-actualization needs – The last stage of Maslow’s Hierarchy is based on the ways by which employees are able to realise their personal growth, personal potential and self-fulfilment. The realisation can be affected by the monetary benefits which are provided by organization to the employees can help the employees so that they are able to learn their strengths in an effective manner.
The analysis of the Maslow motivational theory has depicted that monetary motivation has not been able affect the different stages of the employee motivation in an efficient manner. The management of a company can further implement various motivation based techniques. The monetary motivation alone cannot increase organizational productivity. The different needs which are a part of Maslow’s Hierarchy theory can play an important role in the proper fulfilment of desires of the employees Graham, Ziegert and Capitano 2015).
Conclusion:
The analysis in the essay can thereby be concluded by stating that the importance of monetary benefits cannot be reduced, however, the other factors will also play an important role in the operations of the organization. The organizations can implement many other techniques in order to create a loyal base of employees. The levels of revenues and profitability of the organization can also be increased with the help of various other techniques implemented by the management.
References:
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De Wit, F.R.C., Scheepers, D., Ellemers, N., Sassenberg, K., Scholl, A., Pickering, M.E., Windeler, J.B., Chudoba, K.M., Sundrup, R.Z., Norton, T.A. and Zacher, H., 2017. Journal of Organizational Behavior.
Graham, K.A., Ziegert, J.C. and Capitano, J., 2015. The effect of leadership style, framing, and promotion regulatory focus on unethical pro-organizational behavior. Journal of business ethics, 126(3), pp.423-436.
Güss, C.D., Burger, M.L. and Dörner, D., 2017. The Role of Motivation in Complex Problem Solving. Frontiers in psychology, 8, p.851.
Hogg, M.A. and van Knippenberg, D., 2017. Social Identifications in Organizational Behavior. In The Self at Work(pp. 92-110). Routledge.
Hui, C., Lee, C. and Wang, H., 2015. Organizational inducements and employee citizenship behavior: The mediating role of perceived insider status and the moderating role of collectivism. Human Resource Management, 54(3), pp.439-456.
Lazaroiu, G., 2015. Work motivation and organizational behavior. Contemporary Readings in Law and Social Justice, 7(2), p.66.
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Luthans, F., Luthans, B.C. and Luthans, K.W., 2015. Organizational Behavior: An evidencebased approach. IAP.
Menges, J.I., Tussing, D.V., Wihler, A. and Grant, A.M., 2017. When job performance is all relative: how family motivation energizes effort and compensates for intrinsic motivation. Academy of Management Journal, 60(2), pp.695-719.
Moradi, M., Shekarchizadeh, A.R. and Nili, M., 2015. Determination of Factors that Affecting on Motivation and Assessing their Impact on Employee Performance. Research Journal of Recent Sciences ISSN, 2277, p.2502.
Pentland, B.T. and Hærem, T., 2015. Organizational routines as patterns of action: Implications for organizational behavior. Annu. Rev. Organ. Psychol. Organ. Behav., 2(1), pp.465-487.
Punnett, B.J., 2015. International perspectives on organizational behavior and human resource management. Routledge.
TYLER, T., 2014. Interpersonal treatment, social identity, and organizational behavior. Social identity at work: Developing theory for organizational practice, p.155.
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