HR911 Employee Reward Assignment Sample

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Introduction

Motivation in the workplace is a very important factor that influences people to continue working with confidence and helps people to develop personal growth which in turn helps to improve the productivity of an organisation. This research will give an understanding of how motivation helps people to work in an organisation and the thing that keeps people motivated to achieve their goals in an organisation. In this research, it will be discussed how motivation helps to design employee reward strategies with the help of some theories namely Herzberg’s theory, Maslow’s Hierarchy of needs, and Expectation theory. Relevant examples would also be added in this context with adequate business evidence.

Discussions

The motivation of an employee plays a very important role in the success of an organisation (Karim et al., 2019). Motivated employee concentrates on their work and performs their tasks with much dedication and sincerity, which increases the productivity of a company and it also decreases the rate of absenteeism. Maintaining the motivation of employees in a workplace is not an easy task since the leaders need to encourage and motivate them regularly and they also needs to praise them for achieving the targets. This would help the employees to boost their morale as well increase the confidence to perform by giving their 100% efforts. Motivation is important in an organisation because it helps everyone to towards a common goal (Razak et al., 2018). When people are motivated they work hard and give their best effort, which helps the organisation to succeed. A motivated employee could also discuss negative attitudes privately, be aware of HR procedures and policies, and involve HR in their problems, to ensure that an HR representative listens to and supports those (Razak et al., 2018).

The motivation of employees can be maintained by providing them with some rewards for their good performance and efforts. A rewards system means the non-monetary and monetary, and psychological encouragement that is provided by the organisation to the employees in return for the work done by them. Rewards can be of two types, extrinsic and intrinsic rewards, which help to maintain the motivation of the employees. Extrinsic rewards such as a hike in salary, providing bonuses and gifts at the time of any occasion and giving promotion when an employee meets certain criteria (O’Malley and Burke, 2022). Furthermore, intrinsic rewards are recognition, providing feedback and information after the completion of work, and having trust and faith in the employee with the assigned tasks. This boosts employee morale and helps in promoting company growth. For example, Tata Consultancy Services (TCS) offers employees various types of benefits that help to build their morale (Builtin, 2022). These include health and wellness benefits like dental benefits, mental health benefits, flexible spending accounts, life insurance, and others. They also provide flexible working hours, family medical leave, arrangements of company outings, which promote team building, retirement, and stock benefits. TCS also provide vacation and leave benefits that motivate their employees.

IBM provides a wide variety and competitive benefits to its employees, which are designed to support their employees as well as their family for all across the areas of health, physical, financial, mental, and social purposes (IBM, 2021). The company is also providing comprehensive coverage for a variety of medical situations, strong protection against serious injury, illness, and strong support for employee well-being and preventive care. With a 401K plan and other capital accumulation programs, the retirement program helps build financial security in the future. In addition to income protection, disability, and life insurance benefits may also be available in case a person dies, is injured, or goes through a serious illness. Travel, personal leave, and holiday plans provide the opportunity to pursue leisure pursuits.

The concept of motivation within the employees is the cognitive decision-making process that focuses on the behaviour of goal direction that is initiated, energised, maintained and directed is considered to be the motivation (Bin Saeed et al., 2019). Motivation plays a significant role in enhancing the overall performance of an organisational management with the help of their motivated workforce. There is a considerable impact of employee motivation while designing employee rewarding strategies. The majority of the employee rewarding strategies focus on increasing the motivation level of the employees within a workforce to witness better performance and productivity (Leonova et al., 2021). Based on the motivational requirements of an organisational workforce, it can be stated that there are two types of rewarding strategies based on the type of motivation required. These two types of motivation, which are stated above as extrinsic reward and intrinsic reward, have a significant effect on the overall rewarding strategy.

As per the extrinsic reward, this particular type of reward strategy is focused on providing financial or tangible based rewards to the employees. This particular reward strategy is focused on providing employees with rewards such as pay rises, bonuses and benefits based on their financial aspects within the workforce (Pradhan, 2022). The extrinsic reward strategy is considered to be an external method, which focuses on completing a required task by itself, which is being controlled by the management other than the employees within the workforce. The main motivational impact of this particular strategy is to focus on providing a jump start, which could be an essential performance upgrade within the workplace for better productivity (Werbach and Hunter, 2020). Hence, it provides the ability to the workplace management to ensure that employees are motivated and focused on the goals set by an organisational management. However, this particular rewarding strategy of enhancing the motivation level of the employees has a limited impact over a period of time and requires increasing the financial funds for better performance and results (Asaari et al., 2019).

International organisations such as Amazon have focused on adapting to the specific rewarding strategy, which might have a significant effect over their employee motivation and overall organisational performance. For example, it can be stated that Amazon has focused on increasing the starting average pay of $19 per hour from $18 for the employees within their transportation and warehouse categories (Economic times, 2022). However, it has also been noted that Amazon has stated that by adopting the specific rewarding strategy, the organisational management might face a significant rise in their operating cost, which would be around $1 billion over the next year (Economic times, 2022). Apart from all that, by adapting to this specific rewarding strategy, Amazon might witness a significant rise in their overall performance and employee retention rate.

As compared to the above extrinsic rewarding strategy, the concept of intrinsic rewarding strategy is focused on providing employees with a psychological reward that can be considered to be more meaningful in terms of their performance and productivity enhancement (Refer to Appendix 1). This specific strategy is considered to be an internal rewarding system that focuses on improving the employees’ efficiency in achieving greater success within the workplace with their own efforts and capabilities (Madhani, 2020). The intrinsic rewarding strategy is focused on altering employees’ behaviour based on their personal goals and achieving overall success within an organisational management. Apparently, the strategy is created by organisation management to allow each and every employee within the workplace to be more self-managing and improve their presence by increasing productivity. Thus, it increases the innovative level, problem-solving, skills and improvising capabilities of the employees within the workforce for optimum productivity and performance (Tawse et al., 2019). Therefore, the overall motive of this particular rewarding strategy is focused on motivating employees on a positive emotional level, which helps in interacting with the employees personally and enhancing their desire to provide better performance to the organisational management. For example, international organisational management, such as Google focuses on three vital steps of maintaining an intrinsic rewarding strategy within their workforce. The three steps are considered to be focusing on the employees, creating regular communication, and building team culture for better and optimum performance (Think with Google, 2022). Hence, it has enabled Google to become one of the major international organisations that is witnessing a significant rise in their employee numbers over the years. During 2019, Google had an employee number of 1,18,899, which significantly increased to 1,56,500 in the year of 2021 (Statista, 2022). However, it has not only provided Google to increase their overall employee number but has also provided them with the ability to increase their overall financial revenue in the market. Google had a revenue that amounts to $256.7 billion in the year of 2021, which is significantly rising due to their capability of increasing workspace motivation within the implies (Statista, 2022).

Different theoretical interpretations can take place to critically signify the consequences related to motivation in the workplace. Herzberg’s two factor theory can be reflected in this case, which focuses on highlighting the two major factors that states the aspects that affects an individual’s satisfaction and motivation level within their professional life (Sumanasena and Mohamed, 2022). The two major factors can be concluded as employees’ job satisfaction level and job dissatisfaction level. Hence, both of these factors have a significant impact over employees’ motivational level best on the performance in different ways. It can be stated that an organisational management that focuses on maintaining a significant rewarding system, has a significant influence over the employees’ motivation level. The impact of motivation on employee motivation strategy has a significant influence based on effective and motivational factors that tends to influence individuals differently within the workforce (Refer to Appendix 2). Therefore, the job satisfaction of employees can be affected by implementing a significant employee reward strategy such as intrinsic and extrinsic rewards systems. On the other hand, a poor rewarding system might also significantly affect the overall motivational level of the employees within the workforce, which might result in increasing job dissatisfaction among the employees (Ali and Anwar, 2021). Thereby, the theory is mainly focused on highlighting the two aspects that might have significant influence over the overall performance of organisational management by focusing on providing employees with specific rewarding strategies.

Maslow’s hierarchy of needs is a theory that is mainly focused on highlighting the psychological aspects of the human needs based on five different factors of the theory (Cui et al., 2021). The five different aspects of the theory are focused on two different factors of psychological needs of the employees within a workforce. The two different factors can be stated as the deficiency needs and the growth needs of the employees (Trivedi and Mehta, 2019). The primary aspect which has been highlighted in the pyramid of Maslow’s hierarchy of needs is the psychological needs of the employees. As mentioned above, it can be linked with an intrinsic rewarding strategy as it focuses on providing the employees with psychological needs for better and optimum performance. The second aspect of the theory is focused on safety needs as it also includes the psychological needs based on employee’s experience order.

It can be stated that the third and the fourth factors of the theory are also focused on the psychological needs (Refer to Appendix 3). It focuses on ensuring that there is a considerable rise in employee motivation by fostering a sense of community and independence in the workplace (Sandjong, 2021). As a result, it provides the employees within the workforce to enhance their performance based on their productivity aligned with the organisational goals. The theory’s fifth and final aspect, which focuses on employees’ desires for self-actualization, enables them to meet their own demands for fulfilment (Chan, 2022). For example, organisations focus on adapting to extrinsic rewarding strategies to provide employees with financial motivation as salary raises and bonuses.

The concept of expectancy theory is focused on the impact of motivation on the employees by adapting to different rewarding strategies. The theory focuses on providing beneficial information as the intensity of the tendency to perform in a particular manner is dependent on the intensity of expectation of an individual based on the results (Jensen et al., 2019). As per the theory, it can be stated that the outcome of a particular activity provides a significant motivation level to individuals based on their personal expectancy. The theory focuses on highlighting those employees. Motivation is an outcome of three major factors which can be stated as valence, expectancy and instrumentality (Swain et al., 2020). Regarding the Valence factor, it is the importance that a person associates with the projected result based on their performance. In order to provide employees motivation to improve their performance, incentive tactics are therefore seen to be useful. According to the thesis statement for the entire essay, instrumentality is the conviction that one would experience the desired result if the performance expectation is reached. When the result is the same for all conceivable performance levels or is ambiguous or unknown, instrumentality is poor.

Certain strategies are likely to be taken by businesses to maximise the positive influence of reward strategies on motivation at the workplace. Companies need to consider a few more aspects while creating a reward system that would make employee motivation more strong. Companies may ask for employee input while creating a reward system in order to understand better what would help an employee to keep up their motivation to work (Lazear, 2018). After the achievement of certain targets, maintaining discipline, and other small kinds of stuff like coming to the office on time, the company can reward a badge and some recognition rewards or gifts which would, in turn, help the employee perform better in the future.

Teamwork plays a significant role in the path of success for an organisation; hence, if a team achieves a specific target and gives its best performance, the rewards should be given to the whole team, as it would give a morale boost to those employees who have an average performance. This strategy can motivate employees to improve their performance. The company should also implement team-building activities with both experienced and inexperienced or new employees (Zlenko and Isaikina, 2020). In this case, employees would understand themselves better since everyone would have to work with each other under the same organisation by maintaining a profound collaborative atmosphere that signifies workplace motivation.

Conclusion

To conclude, this research gave an understanding of how motivation helps to build up a reward system in an organisation which helps the employees to stay motivated while working and make improvements in their performances which would lead to an increase in productivity, profitability, and have an impact on the way to the success of the organisation. Furthermore, this research also shows how few companies have adopted various innovative and competitive ways of rewards and employee benefits that increase the job satisfaction of an employee. Additionally, a few theories have also been projected here which show how motivation can help to design reward systems in an organisation. Lastly, few recommendations have also been provided, which state how an organisation can improve or build a better reward system for the betterment of both the employees and organisations.

References

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