Question

in the context of using rewards to moti ate employees analyze the different type of variable -pay programs that can increase employees's movation . cite relevant example .

Answer 1

Answer-The different type of variable-pay programs that can increase employees motivation-

1.Performance based incentives-It is a type of variable pay programs which is offered to the employees of the organization when they achieve the target set by the organization when an employee achieves the target than the organization offers them the incentive to those employees who contributed to the achievement of the target. Example-Rock is a very hard-working employee, when he achieved the target which was given by the organization to him then he receives incentives for the good performance of his work.

2.Bonus-A bonus is a type of payment that is given by the employer and received by employees of the firm which is in addition to their base salary which means when the company is making a profit and is in strong financial condition than they offer bonuses on the special occasions to motivate their employees. These occasions can be festivals, celebrations of foundation day, employee appreciation day, etc. For Example-XYZ limited is a steel company and they are making a profit surplus during the financial year-end, after the end of the financial year they decided to offer bonuses to employees for their motivation to do hard work to increase more profit for the organization.

3.Ownership and Profit Sharing-It is a type of motivation which is offered to the employees in which they are provided some ownerships of ongoing projects like they can do work according to their plans to achieve the target and profit-sharing means profit is shared with employees in the forms of giving them shares, bonds, etc to employees to motivate them. Example-XYZ limited offers 10 equity shares to the employees of the organization to motivate them.

etc.