Reward and Motivaiton

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So we can see that although monetary rewards can incentivise and, in some cases, motivate they cannot be the entirety of the rewards offered. As noted above the human behaviour is far more complex than carrot and stick and one cannot simply state we can pay you to work and be happy, Herzberg theory reinforces this. (Kehoe, 2013)

As cited by (Ryan, 2012) a broad definition of rewards system follows ‘Reward system refers to all the monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for the work they perform.’ (Bratton & Gold, 2007)

The core concept in (Thompson, et al., 2012) chapter on rewards is that financial rewards provide high powered incentives when rewards are tied to specific outcome objectives. Lincoln Electric is known for its piecework pay scheme rewarding individuals with bonuses for each non defective part produced they believe this motivates the employee to pay attention to quality and quantity produced. Lincoln rates workers on fours measures 1. Dependability, 2. Quality, 3. Output and 4. Ideas and cooperation. The highest rated employees received 110% of their piecework compensation.

(Clarke, 2010) Highlights that a reward systems should control behaviours by reinforcing positive performance and modifying negative behaviour while warning against a situation where by one area/division or sector of a company may not be negatively impacted by its peer achieving their performance goals. Clarity of the system and the behaviours needed to secure that reward are important in the process also noted was motivation and he reinforces the above points that rewards need to be tailored and like behaviours cannot be expected from all.

Rewards schemes may include extrinsic and intrinsic rewards. Extrinsic rewards are items such as financial payments and working conditions that the employee receives as part of the job. Intrinsic rewards relate to satisfaction that is derived from actually performing the job such as personal fulfilment, and a sense of contributing something to society. Many people who work for charities, for example, work for much lower salaries than they might achieve if they worked for commercial organisations. In doing so, they are exchanging extrinsic rewards for the intrinsic reward of doing something that they believe is good for society (Ryan, 2012)

An Abstract:

“we must acknowledge that monetary rewards aren’t everything and that they can even distort people’s motivation. For example, enticing the workforce with financial incentives and a strong bonus culture can lead to unwanted, risky and even unethical behaviours. Equally, because we tend to overestimate our ability as individuals, many if not most people find performance-based pay attractive in the first instance, but ultimately disappointing and demotivating. The key is having a flexible reward package that takes into account behavioural nuances and doesn’t rely solely on a wad of cash as the only means to motivate staff. It’s a change in direction for many but should also be welcome news for organisations who, in a challenging economic context, need to be more creative with their rewards package” (Gifford, 2015)

Another aspect of the rewards systems that we hear very little about is fairness. A perception of unfairness can have a detrimental effect on a person especially in a competitive work environment and we may see the opposite effects of what our behavioural aims hope to achieve. J. Stacey Adams equity theory developed in 1963 puts forward a theory that people need to feel that they are getting a fair balance between their inputs and outputs.

Managers need to strike a balance between the rewards given and the level of input form employees. Employee will bench mark themselves against what they perceive to be a fair comparison either by their peers at work or in other organisation and the system e.g. pay policies, procedures and administration.

Although literature can state simply a good rewards system exert a significant influence and achieve the desired behaviours it is important to note the above fairness impact. We may see the opposite effect wanted with employee feeling unfairly treat being inwardly annoyed and feeling undervalued (legitimately or otherwise) this may result in them applying themselves less to the work or simply look elsewhere to find a new role that will end the perceived inequity. (Kehoe, 2013)

Conclusion.

The question at the beginning of this essay asked are HR systems designed to exert a significant influence on employee behaviour I believe, and I have shown above, yes they are, they may not be all designed well enough to actually get the behaviours desired, and some can be inadvertently designed to get the opposite of the desired effect.

Concentrating on rewards from the cited media above its clear that rewards, whether monetary or not, are dangled in front an employee with a desired result in mind i.e. higher output= bonus.

In my own experience a system I am familiar with is the attendance bonus where-by we get a bonus quarterly when we achieve 90% attendance in the time period. I have achieved this bonus 4 times in 6 years. And I never strive to achieve it, it is a system that is there with no real influence. On the other hand I observe a lot of my colleagues who will really make the effort to get that bonus it has become part of their income, however small, and they want that €120 possibly on principal.

The key points relating to the essay are yes HR systems, namely rewards, are designed to influence behaviour. A lot of literature of business gurus state motivation as the key outcome of rewards systems but we have to consider also that although that may be true there is a complex minefield of other behavioural outcomes that can result in a good or badly designed and /or enforced rewards system.

A rewards system may also be viewed as a control mechanism taking away autonomy this can lead to dissatisfaction resentment and industrial conflict. (Thompson, et al., 2012) Summarised by (Torrington, et al., 2014)

Bibliography

Bratton & Gold, 2007. Human Resource Managment Theory and Practice. 4th ed. s.l.:Palgrave Macmillan.

Buchanan, D. a. H. A., 2010. Organsiational Behaviour. 7th ed. New York: s.n.

Cartwright, S. & Holmes, N., 2006. The meaning of work: The challenge of regaining employee. Human Resource Management Review 16, Volume 16, pp. 199-208.

Chalofsky, N., 2003. An