This survey will investigate the hyperlink between motivational theory and incentive in pursing successful execution of such procedures and the monitoring of these in conditions of employee performance.
Assess the link between motivational theory and reward
"Motivation is the process by which the behavior of a person is inspired by others, through their capacity to offer or withhold satisfaction of the individual's needs and goals". (BPP Learning Media, 2010) Motivation theories are split into two different viewpoints. See content and process ideas of inspiration in (Appendix 1). Content ideas emphasise what motivates are, whereas process theories emphasise on the real process of determination. Alternatively compensation is something that staff achieve during their work. It can be financial where company pay for their performance and it could be non-financial where in cases like this company reward employees by campaign, achievement and praise.
"Maslow puts onward a theory that there are five levels of individuals needs which employees need to have fulfilled at the job" (Mullins, 2005). See (Appendix 2).
Maslow talked about in his theory, professionals who are following this theory deflect their attentiveness to offering complementary pleasing human relationships, more appealing work, and more opportunities for self-fulfilment.
On other hands, Herzberg in his theory suggests that there are two basic needs of people such as hygiene factors (environmental factors) and desire factors. See (Appendix 3). Professionals who following Herzberg theory, they reject money as a motivator and put attention on supplying more job improvements.
According to McGregor's theory, managers' may follow two different theories which is theory X and theory Y. Pursuant to theory X, the average employees dislikes work and will avoid it whether he/she know what to do or not, that is why employers suggest Theory Y which cause them to do excellent job and administrator offer opportunities to execute a job done. However, McClelland focused interest on providing employees the capability to persuade their needs for success, power, and relationship.
Companies use both positive amplification and negative amplification to inspire employees. Managers might use positive motivation techniques to persuade employees to create good quality job. Some managers could use negative motivates ways to encourage employees and stop them from bad manners. However, companies prize their employees with both touchable products, as well as admire. Mangers may pay back their employees by giving weekly or every month benefit or free lunches, many professionals praise their top employees by praising them.
For example: Tesco use two desire ideas - Maslow and Herzberg, see both hierarch in (Appendix 4). Tesco uses Maslow theory since it suggests the business if they achieve one level then it motivates them to attain the next one. Also Tesco is designed to stimulate its personnel both by paying interest to hygiene factors and by permitting satisfiers. For instance, Tesco motivates its personnel by good communication, giving responsibility and relating employees in decision making. Tesco permit the staffs to be part of the talks on pay goes up. This shows credit of the task that staff do and rewards them.
In Tesco they rewards staff because of their works since it keep motivates them at the job and will carry on applying different drive theories at work. Sum compensation use by Tesco in a way to getting employees to welcome the complete value of their benefits package. Tesco also follow pension system and this will usually include pension assistance that the employer creates on the employee's behalf and being process in payroll team. They also pay back employees giving them extra benefits such as car insurance and private medical care insurance, by special offers and discount rates. See Tesco's reward system in (Appendix 5).
Evaluate the process of job evaluation and other factors identifying pay
The Procedure for Job Analysis:
"Job evaluation is a systematic process for determining the relative value or size of careers within an organisation in order to determine internal relativities. It offers the basis for planning an equitable class and pay framework, grading careers in the structure and managing job and pay relativities. "(Armstrong, 2006)
Analytical - items rating, factor evaluation, proprietary brands; and
Non-analytical - job ranking, job classification, combined comparisons
The other factors determining pay:
Size of the organisation
Skills and experience
Profitability of the organisation
See (Appendix 6)
The success of incentive systems in various contexts
Bratton and Yellow metal (2003) define a reward system "The mixture of extrinsic and intrinsic rewards provided by the company. It also contains the integrated regulations, processes, practices and administrative types of procedures for implementing the system within the framework of the recruiting (HR) strategy and the full total organisational system".
There are two types of rewards: Extrinsic rewards are tangible rewards that worker receives form their good performance, such as bonus deals, salary raise, gift ideas, promotion, payment and commissions. Intrinsic rewards tend to give personal satisfaction to an employee, such as information, responses, reputation, trust and romance.
Employee reward systems are an optimistic strategy and can provide actual motivation. Additionally to monetary thoughts; reward systems take into account factors such as attendance, customer service, quality, group and specific performance. Also bonus products increase employees' determination and end result. It increases employees' morale and gives them self-esteem. However, a carefully prepared bonus system can improve retention which helps protect the best employees
Salary raise is other types of prize system which is one of the most significant motivators of the worker, also it is the main element motivation behind an employee's performance.
Promotion is one the main types of pay back system, where an organisation reward a worker by moving them of their position to higher position. Promotion increases staff morale and job satisfaction.
However, improved performance can be an effectiveness of praise system, where it can help employee to do well performance because by doing this a worker can get extra incentive forms the company. By the side of this compensation employees also put their attempts, skills and knowledge that assist those to learn something new.
However, pay back system also increases profit, in which a company has good possibility to make revenue because worker works seriously and carefully. In addition, it helps to bring positive mental health deal between employees and the company and creates a much better working environment and helps organisation to keep gifted, potential employees with them.
Examine the techniques organisations use to screen staff performance.
There are some methods that use by Tesco to screen their employees' performance. Tesco use observation and opinions to monitor their staff performance. Upon this system Tesco work with someone for monitoring the performance of the staff and after providing opinions straightforward. By observing and providing opinions Tesco can give the accurate shape to the employee which is expected to them.
Tesco also use performance requirements which is one of the staff performance monitoring system where performance has been weighed against the criterion and there staff need to do this criterion. Under this system performance must have to be sensible, measurable and have expressed in terms of time, quality, cost, volume, effect, or manner of performance.
Performance evaluation is another method that plan by Tesco to determine the actual job performance of a worker against chosen performance benchmarks. In Tesco employees' are interviewed to speak about their performance to recognize talents and weaknesses, and to create a plan about how exactly weaknesses, can be improve and how strengths can be increase.
Tesco also uses a method known as "360-level appraisal" (Business Circumstance Studies, 2013). Where in this technique all Tesco's stakeholders evaluate an employee's performance and present them feedback. For instance, manager of 1 department get responses from their manager, from the HR section and their team.
The conclusion of the report implies that employees' desire and reward are extremely important. There are various kinds of theories of desire such as Maslow's, Herzberg's, McClelland's and McGregor's ideas. Each theory has a slightly different view of a leader's and employee's determination. Motivation is managers' action to affect employee's behaviour at the job, so that perform as required to be able to achieve organisational goals. Reward management can be view as a type of management practice where employees are rewarded for their performance. Rewards can be tangible and intangible advantages to employee within employment marriage. Employees see prize as a come back in exchange of the performance being treasured by workplace.