Organization Reward and Motivation

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Organization reward and motivation Introduction Motivation Definition Motivating behaviors Individual characteristics and motivation Money as motivation Pay and motivation Pay administration Pricing job Wage and salary surveys Pay range 10.Evaluating the results of pay for performance Reward Definition Equity in reward Compensation as reward Objectives of compensation management Basic aspects of compensation Challenge affect compensation Merit of reward Relationship between reward and motivation Conclusion Reference Money as motivator The issue on money as a motivator first needs clear understanding on what we mean motivation. Motivation is defined as a process which account for a person's intensity, direction, and persistence of effort toward attaining a goal. (S Robins, 2004) As an extrinsic rewards and one of the well known motivational techniques, money is proved to be a well-accepted motivator for a long history. It is normally reflected in pay rise, bonus or share option. It is an effective motivator but not in all cases. There are different studies, ideas, and motivation theories regarding the effectiveness. One of the famous motivation theories is Herzberg’s motivation theory which focused on two factors, Motivation and Hygiene. Hygiene factors such as pay if perceived as unacceptable lead to job dissatisfaction, if perceived as acceptable lead only to a state of no dissatisfaction. Hence, a large raise may result in a temporary excitement, but would not lead to job satisfaction. The second important theory is Adams’s equity theory and Homan’s distributive justice or exchange theory which states that an employee’s productivity and satisfaction arise from the degree of fairness (equity) or unfairness (inequity) that an employee perceives in the work place, in comparison with others. The degree of equity is defined as the ratio of an employee’s inputs (productivity) to outcomes (pay, benefit, service, etc) compared with a similar ratio for a significant other (a fellow employee holding the same job in the same organization). Employee’s who working in the same position and job comparing what they had paid and what others paid. If there is any payment difference and not perceived fairly it reduces the productivity or satisfaction of employee. To reduce these feelings and remove dissatisfaction raising salary (pay) plays important role. The third theory is Tolman and Vroom’s expectancy theory which states motivation depends on the expectations that efforts will produce performances. Employee’s made their own picture about the likelihood that a given level of effort will result in a desired outcome. Various outcomes have different levels of desirability or valence. If the expectance is desire of pay raise again money play important role. Pay and motivation In general thought workers and managers are more alike than unlike and for the most part are motivated by the same force except for non professionals. What we mean is what the manager wishes to obtain from employment is much the same as what the non-managerial worker wishes to obtain. Therefore the manager can enhance employees' motivation by helping them obtain from work the same things the manager wishes to obtain from work. capable leadership safe surroundings acceptance recognition fair treatment reasonable job security knowledge of the results of their individual efforts knowledge of rules and policies respect fair monetary compensation This brief listing encompasses nearly everything the individual wishes to obtain from a relationship with a work organization. The differences in motivation, then, stem from the differences in people; all these needs exist to a greater or lesser degree in nearly everyone, but the forces exerted by some of these factors...
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