My Topic: Does the rewarding strategy can improve employee’s motivation? Introduction
Vibrancy of a company derives from the positive and creativity of each employee, kinds of motivation methods are provided in accordance with a variety of demands and motivation. Targeting at a better performance and making employees try their best to accomplish company's objectives; many managers tend to reward their subordinates for the outstanding employees to reinforce the good behavior. However, whether the reward strategy can become an effective way to promote the employees' motivation or not has been a common problem concerned by many professionals in human resource area as well as the leaders in some companies. Although, the strategic reward system contributes much to improve employees' motivation by satisfying their needs and making them feel be valued, the reward strategy is still not perfect because of some internal and external factors, some overlooks caused by the reward strategy even may play a negative role in the improvement of employees' motivation (Gary, 2007). This essay aims to discuss the positive and negative side of the reward strategy, classic theories will be provided to support and explain some opinions. In order to have a deep and clear understanding about the influences of reward strategy, this paper will compare the positive side with the negative side of the strategic reward system together to draw a conclusion for the issue--whether the reward strategy can improve employees' motivation or not.
Positive sides of the financial reward
Reward strategy is a critical part in improving employees' motivation. Usually, a reward system consists of financial reward and non-financial reward. Financial rewards refer to the compensation, such as the base salary, pay incentives and employee benefits. Non-financial rewards refer to the intrinsic rewards, praise, recognition, time off and so on (Duncan, 2001). Reward plays an important part in managing people well and motivating the organization. According to Maslow's hierarchy of needs, people have five-level needs: physiological needs, safety needs, social needs, esteem needs, and self-actualization needs (Maslow, 1970). Financial reward can meet employees' needs in different aspects which can contribute much to promoting the high performance. Employees will make determination to do the job well to acquire the financial reward for the satisfaction in both substance and spirit. A reasonable reward strategy will increase the attractiveness of an organization, it can help company to attract more excellent employees and to make the recruitment process more frequent, more and more excellent talents and genius will be appealed by the advanced reward system. As the Expectancy Theory tells us, if a company wants to motivate their employees, it should let the employees clearly know that the job can provide things they really need which have tight relationships with their performance and high performance can be achieved as long as the hard work (John, 1963). Based on this theory, the financial reward can adjust employees' objectives and expectancy to make these two factors be in line with each other which will contribute much to the promotion of good performance as well as a good attitude. Equity Theory shows that employees will try hard to seek the fairness in financial rewards, after the struggling, if the unfairness in reward still exist, the motivation will be frustrated. Formulated basis by the Equity Theory, reward strategy can reduce the feeling of unfairness in some degree which will guarantee the continual motivation for employees, besides, a fair financial reward system can also benefit much in the improvement of employees' loyalty. A strategic reward system is formulated in accordance with the strategy of human resource department as well as the objective of whole organization that will drive the accomplishment of the organization's final mission (Richard & Gill,...
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