Motivation vs Employee performance

Topics: Employment, Motivation, Performance management Pages: 9 (2966 words) Published: December 23, 2013
Chapter 2: Literature Review
This chapter examined relevant literature from works that have already been done on the topic. The literature review was structured in the following form: Introduction, motivation, the early theorists of motivation, and contemporary theorists of motivation. Area of Study 1: Motivation

Motivation is defined as the process that initiates, guides and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. It involves the biological, emotional, social and cognitive forces that activate behavior. In everyday usage, the term motivation is frequently used to describe why a person does something. For example, you might say that a student is so motivated to get into a clinical psychology program that she spends every night studying. Psychologists have proposed a number of different theories of motivation, including drive theory, instinct theory and humanistic theory. Motivation is the force that initiates, guides and maintains goal-oriented behaviors. It is what causes us to take action, whether to grab a snack to reduce hunger or enroll in college to earn a degree. The forces that lie beneath motivation can be biological, social, emotional or cognitive in nature. Researchers have developed a number of different theories to explain motivation. Each individual theory tends to be rather limited in scope. However, by looking at the key ideas behind each theory, you can gain a better understanding of motivation as a whole. 1.1. Bonus

Bonus is the extra amount in money, bonds, or goods over what is normally due. The term is applied especially to payments to employees either for production in excess of the normal (wage incentive) or as a share of surplus profits. The wage incentive was designed during the late 19th cent. not only to increase production but to reward the more skillful and more energetic workers. The hourly or weekly wage was to be figured as payment for a standard rate of work, and the workers who exceeded that standard were to receive a bonus. However, the system fell into disfavor with labor unions because rate cutting was often resorted to when bonuses became too high. Industrial engineers of the 1930s realized that definite standards of accomplishment and quality must be set to make wage incentives workable. Many firms have used an annual bonus plan for distributing abnormal profits to employees. The term is also applied to payments to former servicemen in addition to regular pensions and insurance.

1.2. Increment
Salary increments are often expressed as a percentage of an employee's overall base pay. An increment usually represents a portion of what the employee earns per year. Employers use increments to increase or decrease base salaries or to award bonuses. Employees use them as a benchmark to either negotiate a pay increase or a starting salary with a new employer. When an employer offers a starting salary that is 5 percent below average, a potential employee might counter with a 5 percent increase. Public employees typically receive annual raises based on salary increments.

1.3. Better Facilities

Designing a workplace that provides opportunities for the broadest potential workforce makes good business sense. This allows employers to select the most qualified people from the largest possible applicant pool. It may also improve work efficiency, employee productivity, workplace safety and the quality of work. The workforce will likely represent a wide range of demographics and abilities. Most workers spend much of their time at the workplace. Therefore, many design considerations for workplace facilities may be different than other types of built environments that are used by fewer people over shorter time periods. Job performance is best when the environment neither under-stimulates nor over-stimulates the...
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