Essays on Incentive System for a Small Sandwich Company Assignment

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The paper "Incentive System for a Small Sandwich Company" is a perfect example of a business assignment. Theories of motivation fall into content or process theories. They can further be discussed within a grouping of need theories, incentive theories, expectancy theories and cognitive theories (Hodgetts et. al., 2006) defined content theory as “ one which explains work motivation in terms of what arouses, energizes, or gives incentive to employees” (Hodgetts et. al., 2006 p. 370). Content theories assume that people strive to satisfy a range of their needs (Rollinson, 2005) and the needs will determine the "motivational value" of incentives that are geared towards fulfilling the needs (Blizzard, 1998).

On the other hand, the incentive theories looked at external stimuli that affect behavior (Blizzard 1998). These theories were based on the premise that consequences and rewards were major influencing factors of people's actions (Rollinson, 2005). The Equity theory is also another approach to understanding motivation. As per this theory, employees compare their outcomes and incomes to that of fellow workers (Gartner et. al., 1989). The results can be either that an employee works harder intending to adjust the outcomes, or they may alter their perception of fairness of the rewards and incentives for the work they put in.

In developing a remuneration system, it is important to consider the motivational aspects involved, in order to ensure the effectiveness of the system. Remuneration is one of the key elements which provides the reinforcement needed to ensure company goals are achieved (Weiss, 2001). When designing an incentive system for a small sandwich-making company, we can consider many elements from various motivational theories. One of the first elements to consider as per Hertzberg’ s two-factor theory is that remunerations are in fact a “ hygiene factor” which is a prerequisite in an organisational environment without which employees will be dissatisfied and demotivated.

Another element from motivational theories which has relevance in designing this remuneration system is the Expectancy Theory of motivation.



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