Incentive Plan (Evolution of Management Class) - Essay Example

 Incentive Plan (Evolution of Management Teacher: Introduction Employees working in an organization are the assets of the organization and the organizational administration has to be responsible for solving all the problems of the employees. The management should not only manage organizational affairs but also take care of employees and their problems in order to ensure that the employees perform better in their assigned tasks. The management has to take care of human needs when dealing with its employees (Dessler, 2000).

For supporting and encouraging employees, the management has to offer some incentive programs that are for the welfare of the employees. Nokia, which is a renowned company, has offered many incentive programs for its employees as the management of the company believes that employees should be offered with rewards for their competency and performance at work. This paper explains the incentive programs of Nokia offered to its employees for their welfare. Discussion Nokia offers incentive programs to its employees based on their performances as individuals, teams and linked companies (Nokia, 2011).

The incentive program includes announcement of bonuses for achieving some specific goals adjusted by the management. According to the management of the company, there were certain doubts on the fair distribution of bonuses for the employees in the year 2007. This complaint was evaluated thoroughly and solved accordingly to ensure efficacy and precision of the bonus program so that no eligible and competent candidate is left behind in order to receive his bonus for his performance (Nokia, 2011).

As the company is interested to expand and progress in its business, therefore, there is concern about the efficient working of the employees. After having complains on the company’s bonus system, the company’s management not only revised its bonus policies but also offered higher payouts for achieving goals or exceeding the set goals (Nokia, 2011). As mentioned on the company’s website (www.nokia.com), there are incentive programs for the employees that include short-term incentive, R&D incentive, sales incentive production and short-term bonus plans for all the employees serving globally in Nokia (Nokia, 2011).

Communication between employees and management is also encouraged by multiple means to ensure a better relationship between management and the workforce. Again, this element is essential for an organization’s success as without employee involvement, any company’s expansion or progress is not possible (Dessler, 2000). Therefore, the employee motivation programs started for the welfare of the employees by Nokia are quite encouraging for its employees. The overall incentive program deals with the bonuses that are announced for employees working as individuals, teams or companies to meet organizational goals set by the management.

The purpose of the incentive program by the management is to motivate the employees so that not only they can perform better but also prove a source of motivation for other employees and coworkers. If we assess the relationship of the program to the foundational aspects of Humanistic Era including group cohesion, satisfy group motivation, recognition, and cooperation, it is quite clear that the employees get motivated, get recognition and cooperation and work in form of groups to perform better.

However, this cannot be said that this incentive program is fully perfect as employees are also in need of appreciation and promotion, which are not mentioned anywhere in the incentive programs. This incentive program fulfils the individual and organizational needs of the employees to a certain extent. Involvement of other appreciation factors and motivational strategies need to be included in order to encourage employees in the right manner such as involvement of employees in decision making processes, promotional schemes and appreciation letters (Stark, 1990).

Conclusion Incentive programs are very influential in enabling employees to work better. Nokia’s incentive programs are very much effective as the employees of the organization are able to perform better because of the bonuses offered to them as incentives for meeting the organizational goals or missions set by the management. Motivation is essential in any organizational setup as without motivation or encouragement, the employees are not able to perform better (Stark, 1990). There must be development of a communication relationship between management and the employees so that they gain awareness with each other’s problems and the management should take care of human needs.

References Dessler, G. (2000). Human Resource Management. 8th Ed. New Jersey: Prentice Hall. pp. 67-82. Nokia. (2011). Rewarding Performance. Retrieved on 6th March 2011 from http://www.nokia.com/corporate-responsibility/employees/employee-communications/labor-practices/rewarding-performance Stark, O. (1990). A relative deprivation approach to performance incentives in career games and other contests. Kyklos 43 (2), 211–227.