Essays on Employee Motivation - Bonuses and Incentives Coursework

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The paper 'Employee Motivation - Bonuses and Incentives" is an outstanding example of management coursework. In the ever-competitive environment that is characterised by the need to hire, retain and make the best out of employees, most companies offer more than just salary. In fact, businesses are gone to great lengths to outdo each other not only on salaries offered to their employees but also extra benefits that take many forms. Some companies have channeled a lot of resources in developing enviable work-life policies for their staff. Some offer their employees fully paid holidays to the best destinations and have put up things such as free meals, gyms, and free medical checkups all with the aim of being the best employer brands in their industries.

However, while coming up with strategies to motivate their employees, companies need to be extra careful and only those that complement their businesses missions, values, and goals. The best motivation strategies are those that recognise employees for work well done, foster teamwork, encourage development, and have adverse outcomes. On the other hand, organisations should keep away from some motivating strategies especially those that discourage individuals, have no long-term value and may affect the performance of their staff.

If possible, it is advisable that companies strive to eliminate paying annual cash bonuses to their staff due to the adverse outcomes associated with such. Encouraging employees to use whatever is at their disposal including unethical means to qualify for cash rewards may be counterproductive. Discussion Remuneration – Bonuses and Incentives In the bid to boost the performance of the organisation, Take-Two Interactive manager Jim Ellison had promised his staff $5000 cash bonus if they the company’ s goals were realised within the specified time.

At the end of the financial cycle, all the targets had been reached except one that had fallen short by a little over $100,000. In fact, all the goals were surpassed to expect one. The employees hoped that the management would overlook the target they had not achieved but to their shock, they realised that they would not get the $5000 that was promised. Instead, the management acting under pressure from other department was forced to give them $500, which is way below what they expected.

Failure to meet his end resulted in underperformance from the employees. The bonuses and incentives that were meant to motivate employees ended up demotivating them. Issue Analysis Failure to pay the workers the bonus as agreed affected their performance. John Stacey Adams’ Equity Theory states that when individuals feel fairly or advantageously treated, they are more likely to be motivated (Koontz, & Weihrich, 2010). On the other hand, when they feel unjustly treated, they are highly exposed to feelings of feeling unwanted and demotivated. Equally, pay, and conditions alone may fail to motivate employees and to give a single individual promotion or pay rise could have a demotivating effect on others.

Equity theory explains that individuals value fair treatment, which makes them be motivated to keep the fairness managed within relations of their fellow employees and the organisation. Adams explains that people arrive at their measure of fairness by comparing their balance of energy and bonus and other factors of giving and take.


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