The paper "Is Pay for Performance the Best Motivation around the World" is a great example of management coursework. Pay for performance has been employed for a long time by many organizations to control the behavior of workers. This has made many people believe in it as the tool to best motivate employees. With time, society has changed and the use of punishment and rewards in workplaces is receiving more and more criticism (Thomson, 2010). This method of management is outdated and no longer bears the desired fruits. It should be abolished so that people can find better ways of managing and handling their workers. Thus this paper will analyze the effects of pay-performance in regards to employees; the paper will elaborate on various ways in which payments can affect the productivity within the business sector, Furthermore, the paper will look broadly on the effects of rewards and employees in terms of their production within the organization Impacts of payments on employees’ performance. Paying or not paying workers for their performance needs to be reconsidered because it kills motivation instead of nurturing it.
People need to be taught how to motivate themselves in order to increase the productivity and performance of the organization.
Workers would feel better and free if there was no threat of reward or failure to get it. They would be more motivated if they know they are working to raise the image of the organization and not to get a certain reward or punishment in case of failure to please their seniors (Green 63). The presence of a reward can make people aim at short term results where the output can easily be measured. Pay for performance can nurture bad habits in workers.
This happens when workers opt to take the easiest ways to reach a goal. In case this happens, then certain virtues like risk-taking, creativity and courage are hindered. This becomes detrimental to the success of the organization. If risks cannot be taken because people are less courageous then innovation cannot happen. This means an organization can be edged out by competitors since its employees are no longer creative. When a person who detests his/her job is given a reward it will satisfy them only until they get the next bonus. Rewards and work performance Rewards or payment for performance kills cooperation by fostering unhealthy competition.
Many managers desire that their people should work together since teamwork brings results. To the contrary, they encourage their workers to compete against each other by fighting for rewards that are offered to the best performers (Karia, N & Ahmad, Z.A 2000). When people are given promises of rewards or denials of those rewards, then individual efforts are transformed into strategies of how to outdo others and achieve the reward.
For some time this method can work but given time it degenerates into a lack of cooperation and enmity between workers who want to outshine their colleagues. Rewarding performing workers can also increase the cost of running an organization. Take the example of companies that give international trips to well-performed employees. This adds to the expenditure of the organization and it may be hard especially in profit-making organizations (Karia, N & Ahmad, Z.A 2000). Their desire is to have that last penny come in and not give it out on things that can be avoided.
This method cannot be practised by young upcoming organizations that risk making losses if their expenditure is increased beyond the profits. Again an organization may not meet the taste of its workers in terms of rewards. Some employees may resent the type or value of reward offered thinking that it does not match their efforts. As a result, the rebellion might arise (Ooi, K.B & Arumugam 2006).
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