Incentives program work because they motivate employees to make company goals and increase profits so that employees do get an incentive such as a bonus. Incentive programs may not work because only some people may get the money or if the company does not make the goal or profit their will not be any bonus. Other possible issues are if the incentive is not large enough it will not motivate the employees or if the employees are intrinsically motivated an incentive will not motivate them.
p248 - 2) What is it about linking goals to incentives that results in increased motivation?
Linking goals to incentives increases motivation because it allows the employee to know exactly needs to happen for them to make the incentive. In addition goals are related to valence. Valence is the expected level of satisfaction to be derived from some outcome. In the case of incentives such as cash, the cash is related to valence because goals related to what you are doing increases satisfaction. An increase in satisfaction will result to increased motivation as well.
p248 - 3) How do incentive systems tie into VIE theory?
The VIE theory states that people’s behaviors result from choices among alternatives, which are evaluated on valence (V), instrumentality (I) and expectancy (E). Incentives boost valence, the V component in the VIE theory.
p248 - 4) How are incentive plans different from OBM?
OBM is the application of the principles of behavioral psychology to the study and control of individual and group behavioral within an organtizonal. OBM is linked more to behaviors than incentives. For example, OBM includes an evaluation of such behaviors whereas no evaluation is involved in incentive plans.
p279 - 1) What is a company’s “brand”?
The company’s “brand” can be described as their image. It is the culmination of the company’s culture, product and customer experiences. Every...