{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Thinking 6 - reward system must recognize both sources of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
TAO GUO MHR 318 6-7:50PM(MW) CH6-Critical Thinking #4: Financial rewards are advantageous to employees first and foremost because extra income is always useful. According to MSN Money, 43 percent of Americans spend more than they earn each year. Providing an employee with a financial reward is a way of demonstrating to him that you value his work and his contribution to the company. Although praise and gratitude can be motivating factors as well, a raise or a cash bonus is a concrete expression of esteem, one that uses the same currency that fuels every company's day-to-day operations. Employees who feel valued tend to work harder, because they hope for additional financial reward in the future. Meanwhile, they can feel that their contributions are recognized and important. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. To ensure the reward system is effective and motivates the desired behaviors, it is essential to consider carefully the rewards and strategies utilized and ensure the rewards are linked to or based on performance. To be effective, any performance measurement system must be tied to compensation or some sort of reward. Rewarding performance should be an ongoing managerial activity, not just an annual pay-linked ritual....
View Full Document

{[ snackBarMessage ]}