Motivation and Reward Mark-it-Down Co Ltd
In today’s competitive climate lots of business owners are trying to get more from their workforce at the same time however their employees are trying to get more from their jobs. Reward and recognition programmes are one way that employers can motivate their staff into changing their key behaviors and work habits, thus benefitting the business. At the same time these schemes can also give the employee that little bit extra they are looking for from job.
Motivation and reward are closely linked and there have been many credible theories written on the subject. It is widely recognised that human beings have a need to feel valued, both in their home lives and in the work place. To keep people motivated they need to be encouraged, rewarded (where appropriate) or recognised in their endeavors.
One of the most valued of the motivation theories was written by Abraham Maslow from the USA back in the 1950’s. As part of his study into motivation Maslow developed a five tiered hierarchy of needs. He argued that the way to motivate individuals in the workplace and indeed in life is to satisfy the need sets one by one and in order. The first of the need sets and the most basic are the biological and physiological needs. These are survival requirements ingrained into us and evolved with mankind for tens of thousands of years, things such as food, shelter, warmth etc. In Maslow’s model it’s these needs that need to be satisfied before anything else, for example there is little point offering status as a motivator, when the individual has not yet satisfied basic requirements such as achieving a livable wage in order to eat, secure shelter etc.
Peformance at Mark-it-Down Co Ltd is not what it should be and it has been decided between senior mangement and the Human Resources department that the introduction of a reward scheme is whats required to motivate the workforce and improve performance overall.
The team in charge of deciding on the reward system to implement have come up up with the following suggestions:
Variable Pay/Bonus Scheme
A scheme of variable pay is one possible solution for the supermarket. In this scheme a portion of the employee’s pay would be considered at risk. This portion of the wage will be rewarded according to the performance of the company as a whole, on the basis of personal acheivement or based on the results of a department or team (this would probably be the most effective for this type of commercial business)
Targets will be set at the beginning of a specified period (per annum is the common period) at the end of this period depending on the how well the targets have been met, a percentage or full quantity of the “at risk” part of their pay will be paid to the individual. This payment could take a few different forms, possibly a cash bonus, a quantity of stock or shares in the business.
Whilst monetary reward has been proven to be effective and can encourage hard work amongst a team or individually, it has the disadvantage of impacting on profit made by the supermarket, for example if the grocery team meet their target for keeping the produce displays replenished to a defined level, then the whole grocery team will have earnt the bonus which must be paid from the profits. You also may have a situation where part of the workforce become demotivated, if their team or they personally have missed out on a bonus.
Bonus and pay based rewards are considered differently depending on which motivation theory you study. For example in Maslows hierachy of needs, financial remuneration is only mentioned within the first tier of the hierachy which covers the most basic and obvious survival needs (physiological needs) Money was not considered by Maslow be a long term motivator.
Frederick Herzberg considered financial reward to be amongst his “hygiene factors” that is that money in itself is not a motivator but actually will...
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