Question

What are the implications for managers in trying to create rewards that motivate?

Answer 1

Many organizations follow a reward system not only to motivate the employees to increase their productivity but also to keep them happy and loyal to the company especially when they fell that the rewards are contingent upon good performance. But the reward system has its own implication if not managed or created properly. Some of the major implications are:

• It is the nature of the individual to not just look at the reward of their own but others too so that they can compare it. If they feel that the reward they received is inferior to others having the same workload, the employee might get demotivated.
• Failing to reward continuously may create a negative impact on the employees hence such failure to reward can also modify their behavior. Employees who believe that they deserve a reward and didn’t receive it may become disenchanted with both their manager and the management.
• Reward systems may limit the performance of an individual if the reward criteria are not properly identified. Setting an unachievable target may make the employees lose their interest or confidence in achieving the target whereas setting a low target reduces the capacity of the employees to achieve more. For example, If a sales executive can sell 4 mobiles per day but the target is only 3, then the sales executive might postpone a particular customer to the next day in order to maintain the target.