Reward may be financial or a physical benefit however it may also be a psychological payment such as respect. ‘A reward system consists of financial reward and employee benefits, which together comprise total remuneration.’ (Martin et al, 2010) This type of reward is physical and could be performance related pay, bonus, hire car, gym membership and many more benefits a company would subsidise. A psychological payment may be respect, security or prestige. There are two types of reward tangible which is a method that can be monitored and the financial rewards are an example of this. Intrinsic reward is a non-financial reward such as recognition this is a method there is unable to be physically monitored and psychological payments are examples of these. The reason for company’s and employers to provide reward is to reward employees for good performance, retain capable employees, support the corporate strategy and comply with legal obligations.
There are many theories that contain a stage for reward. Vrooms expectancy theory is one of them.
Vroom’s expectancy theory is aimed specifically at the workplace and is based on three variables, expectancy, instrumentality and valence. Expectancy is the relationship between a chosen course of action and the predicted outcome. When a person chooses between different behaviours, the choice is influenced by not just the desire for a particular outcome; it is also influenced by the likelihood of achieving the outcome. ‘People develop a perception of the degree of probability that the choice of a particular action will actually lead to a desired outcome. This is expectancy’ Mullins, L (2010).
Both Maslow and Herzberg’s theories are based on reward as they are split into sections and if you reach basic needs then you will be rewarded with safety. All of the theories are motivating theories and use a reward to motivate individuals to reach the next stage or step and receive the rewards of their hard work.
Maslows theory is split into five levels (explained above) an individual will rise and fall between the levels depending on external factors in their life.
Hertzberg two factor theory is split into Hygiene and motivating factors. Hygiene factors relate to the job itself and relates to the working environment and the tasks involved. The motivating factors of Hertzberg’s theory are those that encourage a person to perform better and increase effort.
Within Fareham School of Gymnastics an organisation I have worked for over 4years with, the reward given is psychological. The one financial reward may be that the pay is relatively good for a part time job. The non-financial reward I feel I obtain are recognition of my hard work, respect within the club by both other employees, the children I teach and the parents of the children. I also feel my job is very secure there especially as I left to live in America and again to go to university and whenever I am at home they will be flexible around me to try and give me work. I feel I am appreciated and welcomed by everyone that works for Fareham School of Gymnastics. I also receive Christmas presents and chocolates or wine for helping out with competitions. To me enjoying your job and looking forward to going to work each day is a massive reward in itself. I feel most of the employees working there feel the same recognition as many of them have been there for years and each employee receives the same help and guidance from more qualified staff. The pay is increased as an individual become more qualified and further increased when you run a class and it is under your responsibility. These increases in pay are very fair and an individual may ask if they would like to take a qualification and the company will subsidise half as long as it is seen as a benefit to the club. All coaches will receive a present for helping out with competitions, fun day events or judging. The rewards are not tangible and therefore fairness and equality is not very easily proven however the small rewards given are always given to every employee and the main reward is enjoying and being proud of working for Fareham School of Gymnastics.
Chief Executives are a vital part of any company however if their company is not successful should they still receive large bonuses? If a company is underperforming surely they are not in a financial situation to offer bonuses and is it fair that only top employees receive them. Bonuses are there to reward an individual for outstanding work and success, if you do well you should be able to earn and take home as much as your talent allows. These bonuses are a form of motivation but if they are handed out even when an organisation is not successful there is no motivation to work harder and make the business succeed. So what are the pros and cons of giving bonuses to chief executives of an underperforming company?
Disadvantages
· The company doesn’t have the money to give.
· The reward should be used as motivation however if the reward is received for even bad performance there is no incentive to improve.
· Others may lose their jobs or receive a pay cut to allow for the bonus.
· They have made the decisions that have lead the business into the situation it is in and therefore they should not receive the reward.
Advantages
· The chief executives are the ones that are under the most stress and have the pressure of making vital decisions for the company.
· Most chief executives have been part of the company for many years and have indirectly helped build the company up, the company may be in slight trouble now but with a reward and motivation the chief executive could lead the company back out of trouble.
· Chief executives have great skills and knowledge to be able to be promoted into their role and therefore their role is highly respected even when times are bad.
References:
Mullins, L (2010). Management & Organisational Behaviour. 9th ed. Essex: Pearson Education Ltd.
No comments:
Post a Comment