To what extent to risk ,rewards and motives contribute towards an entrepreneurs goals - Essay Example

In the current era it can be seen it is mostly the motive of growth that is followed. However, such long-term visions or motives cannot be shared at lower level of the organization. Therefore, long-terms objectives are divided into small achievable tasks and goals in order to bring in a sense of achievement. Thus, in order to keep the employees motivated rewards are offered at the completion of the goals assigned, both at an individual and team level (Joanne, et al., 2013). Reward systems hold a strategic importance for an organization.

Human resource being an important contributor in the operations and success of the organization often requires some risks to be taken in order to grow, especially entrepreneurs that try to excel with limited resources. Thus strategic management of all these factors risks, rewards and motives is very important for the success and growth of an organization. Contribution of risks in achievement of goals Every project, action or the decision that the management would take definitely has associated intrinsic and extrinsic risks.

With growing business competition and globalization of economies the risks are increasing, not only the larger organizations but also for SMEs and entrepreneurs. It is often said “high risk high return, low risk low return”. Thus, in order to increase profits and operations of a business, entrepreneurs take risks. The important thing is how these risks are managed. Risk management today has become a critical part of the strategic management of an organization. It allows the identification of the risks and events that can hamper the proceedings of the project, as per planning.

It even doesn’t allow its successful completion (John, et al., 2005). Identification of risks allows, in advance, to take precautionary measures. Hence, it gives the control to management to exploit the situation. This further gives an advantage to the organization. It is the strength of the strategic management that can make the risk to be the critical contributing sector in success of the organization; rather than a diminishing factor that would curtail the progress of the organization. Example of a multinational organization such as Walmart can be taken.

Walmart used expansion as the growth strategy. They expanded into new markets facing new and extended risks. Pre-identification and analysis of such risks allowed them to exploit the events in their resources, as risk management had given them the opportunity to make better decisions and allowed them optimum use of their resources. Rewards and Motivation Reward and recognition system holds a critical importance in the human resource management of the organization. Employees or personnel are a major factor that decide the output, productivity and growth of the organization.

They are the ones who would be converting the ideas and decisions of the management into actions. Management often splits their long-term objectives into short-terms goals and assigns tasks to each employee, individually or as a team. However these are the organizational goals that the employees are working for and they might be different than that of personal goals of an employee. It is the responsibility of the management to align the organizational goals with the employee. Hence, they should work for the benefits of both.

It can be said that money is a motivational factor. As per Maslow’s need hierarchy theory, it satisfies the basic needs of an individual. However besides rewards, recognition is