Posted Nov.25, 2010 under LEADERSHIP, Leadership Trends, MANAGEMENT Contemporary companies are constantly finding new ways and approaches to recruit top talent, retain top talent, and find innovative ways to motivate employees for maximum output. The theory behind how managers can more effectively motivate and reward employees goes back to the turn of the century. New innovative companies are inventing ways to do just that. Google Inc., Cisco Inc., and Wholefoods Inc., are leading the way to restructure management, so employees can streamline creative ideas that produce blockbuster new products. They are rewarding employees with perks like onsite swimming pools, allowing employees to bring their pets to work, providing on site child care, and all the free food employees want. These companies provide relaxed environments where group thinking is elevated and teamwork is central to invent the next product that could change the next generation. These new companies embrace small individual entrepreneur groups and shun the tight micromanaged environment of traditional companies. These companies have scrapped the employee of the month parking space and raised the bar on how organizations can have real results by rewarding employees. The fascinating aspect of these companies are their intrinsic rewards and how it allows employees to operate with freedom and respect, allowing them control of their own time, and empowering them to have a united common goal, which is to invent products and ideas that will change the world for good.
How can leaders create an effective mechanism that promotes a culture of self-empowerment, creative innovation, and self-motivating employees? In today’s corporate setting, it is hard to create change where freedom is promoted within most organizations. However, many mainstream companies still embrace a stagnate form of management where employees are stuck in cubicles, crowded under florescent lights, and riddled with old school micromanagement techniques that do not produce the best products. This investigation explores the theory behind how companies can reward employees in order to motivate them to become top-producing organizations that will invent the best ideas and products of the century. Companies like Cisco Inc. and Google Inc. have structured their leadership to provide the best environment to motivate their employees with intrinsic and extrinsic rewards; they have become top-producing companies that develop some of the best products that have shaped our world, have taught us how to find information, and have taught us how to learn and see things differently. Companies that have the ability to become household names that morph into verbs who (like Google) are rooted in the culture and values of employees that create these products. Leaders that want to take their companies to the next level and find new ways of rewarding employees for good work will succeed in this new economy. Leaders must study companies that promote free thinking, empowering employees to work together as autonomous entrepreneur groups, and provide work areas that are comfortable and do not take away employees’ humanity, unique individualism or personal freedom. Theory of Motivation and Rewards
The Hawthorne studies in the early nineteenth century examined and studied how managers can motivate employees to work more efficiently, with quality work at the maximum rate of return. One of the areas of information derived from the Hawthorne studies was that something more than pay incentives was improving the employees’ output within work groups. Researchers found that there was improvement in the work due to the fact that employees felt important because someone was studying them at work (Matteson, 1996). One of the concepts that leaders can derive from this historic discovery is that leaders must find ways to motivate and reward their employees besides the perceived rewards of...