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What Motivates Employees, Personal Drive or Incentives

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What Motivates Employees, Personal Drive or Incentives
Running head: WHAT MOTIVATES EMPLOYEES?

What Motivates Employees: Personal Drive or Incentives?

Abstract
This essay analyzes the similarities and differences between incentives and motivation. Various incentive programs are discussed such as employee stock ownership programs, profit-sharing, gain sharing, and the various types of recognition. We conclude with a focus on the guidelines of a reward program, and overall employee morale.

Much effort goes into the planning and implementation of effective incentive programs to shape and encourage new employee behaviors. Little is done, however, to help make those new behaviors become permanent in the workplace. In many cases, shortly after awards are distributed to employees, the focus on desired behaviors such as increased sales, customer service or employee suggestions is greatly diminished. Often diminished with it are the desired results these programs promoted. It is imperative that companies teach managers how to create satisfied employees as well as implement programs that give employees and incentive to want to do well at work. Companies need to learn how to create a healthy balance between those things that affect job satisfaction or dissatisfaction. Hygiene factors, such as pay and policies affect job dissatisfaction, while motivator factors, such as recognition and responsibility affect job satisfaction. Without balance between these two factors, employees will either be dissatisfied or get no satisfaction from their jobs. There are many ways companies can use incentives to motivate employees, and several will be examined and compared to one another.
Incentives or Motivation? In order to motivate employees through the use of incentives, it is important for managers to gain a clear understanding of the two terms. The words are sometimes used interchangeably, but there are differences that must be understood. According to Robbins,



References: Dictionary.com (2008). Web site: http://www.dictionary.com/reference Frisch, R Gorelick, D. (2005). Are incentives always incentives? American Printer, 28 (5), 54-57. Institute of Management & Administration (2007). What programs motivate employees without costing much money? Report on Salary Surveys, 1-6. Izzo, J Koontz, K. (2006). Six ways to motivate your staff. Sourcebook, 23-24. Lamb, G. (2003). A guide to personal finance, consumer trends, and the workplace. Christian Science Monitor, 95 (76), 15-18. Mariotto, D. (2002). ESOP, meet 401(k). California CPA, 71 (5), 32-33. Panos, J. E. (2005). Benefits: make the incentive fit the plan. Personnel Journal, 74 (1), 1-3. Robbins, S. P. (2003). Essentials of organizational behavior. (pp. 119-123). Prentice Hall, NJ: Upper Saddle River. Schermerhorn, J Spitzer, D. R. (2006). Power rewards: rewards that really motivate. Management Review, 85 (5), 45-48. Tolliver-Nigro, H. (2001). Show me (more than just) the money. Graphic Arts Monthly, 73 (11), 3-5. Yang, Y. H. (2001). Setup cost improvement in just-in-time production using profit sharing. Production Planning & Control, 12 (4), 345-352. Yantis, J. (2006, March 6). Tempe, Arizona- based America West Hopes Employee Incentives help performance

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