Overview:
In this case analysis we shall be examining the unintended contradictory results that reward systems bring about and recommendations in solving the issues highlighted
Problem Statement:
Many Problems in Organizations are created because of Faulty Incentives and Flawed reward systems that are setup to accomplish one thing but actually does the opposite.
“While Mangers complain about lack of motivation in their workers, they might as well consider the possibility that the reward systems they’ve installed are paying off for the opposite”.
Directly linked to these Faulty Incentive and Flawed Systems are key issues with
1) Employee Motivation, 2) Reward Systems, 3) Expectation/Misaligned Perception and 4) Biasness in Decision making that are deeply rooted as a causative agent in the Flawed system
Hypothesis
1) Misaligned Perception/Expectation:
Process Perspective: A look at Equity theory and Expectancy Theory in understanding the expected outcome perceived by employee as related to behavioral attitude towards rewards systems
2) Employee Motivation which is dependent on the effectiveness of its reward system: As pointed out by MASLOW HIERACHY OF NEEDS and HERZBERG’S TWO-FACTOR theory of Motivation highlight the effect of rewards both tangible and intangible on behavior 3) Weak or Poor decision Making: As shown by biasness of the community in electing Public service official, even in the face of the right option for endorsement/election
4) Poor performance and attitudes In Most Companies is caused by its reward systems, not the workforce.
Analysis:
As Pointed out by Expectancy theory that People make choices about behavior based on their expectation of what is likely to happen in terms of effort leading to performance and performance leading to desired reward. On the other hand Equity Theory Points out that those Perceptions about reward systems matter.
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