Motivational Theories
Applying Motivational Theories to Compensation
Abstract An organization’s success is built and defined on its strategy and goal for the company. In order for an organization to achieve its goal, it must be shared with the whole organization. This includes the employees as well as stockholders feeling connected to the company and motivated to reach these goals usually by some type of compensation.
Keywords: strategy, employees, compensation, motivation
Introduction
Employees help to achieve the company’s goals by performing assigned jobs. If the company has an integrated company-wide performance management system in place, employee performance is no longer a nebulous concept but rather a set of clearly defined expectations (goals) to be met by an employee in a given position. To determine the expectations, the company’s strategic goals are broken down in detail to the level of ordinary employees. Employees then seek motivation to meet the designated goals in which the company is able to help them by setting attainable conditions and measures. Hence, the performance of employees corresponds to how the work and rewards (both financial and non-financial) meet the employee’s needs. Motivation can also be negative or positive. At first glance it could seem, indeed, that financial motivation, i.e., financial rewards for employee’s performance, is the right driver of employee performance and that the higher the financial reward, the higher the work commitment and employee’s performance. Yet, the results of surveys and experiments have shown for years that this is not always the case. Financial motivation is meaningful to employees only to a certain extent; once the motivation reaches a certain amount, it no longer influences the employee. This is not a suggestion that companies should disregard the financial remuneration of employees. A well thought out and fair compensation system aligned with
Abstract An organization’s success is built and defined on its strategy and goal for the company. In order for an organization to achieve its goal, it must be shared with the whole organization. This includes the employees as well as stockholders feeling connected to the company and motivated to reach these goals usually by some type of compensation.
Keywords: strategy, employees, compensation, motivation
Introduction
Employees help to achieve the company’s goals by performing assigned jobs. If the company has an integrated company-wide performance management system in place, employee performance is no longer a nebulous concept but rather a set of clearly defined expectations (goals) to be met by an employee in a given position. To determine the expectations, the company’s strategic goals are broken down in detail to the level of ordinary employees. Employees then seek motivation to meet the designated goals in which the company is able to help them by setting attainable conditions and measures. Hence, the performance of employees corresponds to how the work and rewards (both financial and non-financial) meet the employee’s needs. Motivation can also be negative or positive. At first glance it could seem, indeed, that financial motivation, i.e., financial rewards for employee’s performance, is the right driver of employee performance and that the higher the financial reward, the higher the work commitment and employee’s performance. Yet, the results of surveys and experiments have shown for years that this is not always the case. Financial motivation is meaningful to employees only to a certain extent; once the motivation reaches a certain amount, it no longer influences the employee. This is not a suggestion that companies should disregard the financial remuneration of employees. A well thought out and fair compensation system aligned with
References: Heneman, H. G., & Judge, T. A. (2013) Staffing organizations (7th ed.) Middleton, WI: Mendota House. Kammeyer-Mueller, John. (2012) Tanglewood Case Study, Staffing Organizations (7th ed) Read more: http://www.ehow.com/info_8789350_concerning-compensation-motivation- theories.html#ixzz30Q0CUfwq