Need for Extrinsic Rewards - Essay Example

Qn.2 What is the relationship between an employee's salary and his or her feeling of worth Explain your rationale from the viewpoints of an employee and a manager. How can managers create a balance between the two Total words: 250 An employee feels that salary fulfills his basic need and also gives him a feeling of higher esteem (Buelens et al., 2006, Pg. 177-179). An employee views salary as compensation to his skill sets, experience, etc. Whereas, a manager, if he is responsible for the cost location, feels that salary is a cost on the organization.

A manager has to set out a balance in providing a salary structure which would mirror the worthiness in the minds of the employee, without jeopardizing the interest of the organization. In reality, compensation is the one that satisfies the needs of an employee, and it is within its boundaries that develop the employee's worthiness.Qn.3 What type of compensation component would you like to have through your employer that is not currently offered to Explain your rationale. Explain both the benefits and negatives this component will bring to you as an employee and will bring to the company.

Total words: 257 Performance-based compensation brings in opportunities to employees for improvement. This type of compensation differentiates performers from non-performers. At the same time, there is a risk when the objectives that rate performance is not clear (Buelens et al., 2006, Pg. 214, 233-236). Performance may sometimes be hindered on the personal front due to health-related factors. The company has to form a mode of compensation which ensures that equitable performance is honored. If the objectives of the company are not linked to individual goals, unproductive performance will be rewarded.

This compensation structure will work effectively provided the planning and controls are regularly checked.Reference: Buelens M, Broeck H V, Vanderheyden K, Kreitner R, Kinicki A. (2006). Organizational Behaviour (3rd ed.). Berkshire: McGraw Hill.Summary week 5 (Part-2)Qn.1 Please discuss the most important concepts you have learned from the following. The objective of InterClean, Inc. is to compensate its employees which will meet everyone's needs. According to Salz (2008), the compensation plan chosen by the company should be in line with the company objectives.

He states that managers should also be compensated to align with their duties. He further asserts that 'management by objectives' would be the best plan that can be adopted. The sales force of a company has to be compensated to gear up their motivation to get their best performance, Zemanta (2009). Bangert (2006) also says that compensation should be linked to the objectives of the company. Mentoring programs for employees who are weak in sales will help them to improve their performance and the company would be benefited.Qn.2 How will these concepts impact you personally and professionally Motivation to work hard will improve if compensation is linked to performance.

It will surely boost my motivation to carry out my task with continued effort. Improved performance means, extra pay and this will bring in mental satisfaction to me. Professionally, it will enhance my performance. If rewarded I feel elated when I am among my co-workers.Qn.3 What is the value-added from these concepts, or what differences can these concepts make to your organization These concepts can make every employee motivated to perform his best. Since compensation is related to performance, each employee will try to work hard and in turn, the company will become successful.

Strategies can be worked out so that mentoring is made available to weak salesmen for guiding them. This again will be an added advantage to the company.