Rewarding Employees to Motivate Them - Coursework Example

Rewarding Employees to Motivate them A. “My Organization and Role The organization I’m performing my project on is General Atomics – AeronauticalSystems Incorporated (GA-ASI), Technical Publications Engineering. GA-ASI builds modern remote piloted aircraft (RPA) from the ground up and also the ground control stations (GCS) that control them. A different side of the business is responsible for building radar and surveillance equipment to include sensors, lasers and satellite link equipment. 2. My role in the company is a Technical Writer in Technical Publications Engineering department. Specifically, I’m to create first article documentation for new-development projects. I gather and research source data and information for systems and equipment that do not yet have a baseline or a precedent publication. B. Departmental Problem 1. What can the Technical Publications Engineering department do to improve morale across the department? 2. It has become apparent that the morale across the department has declined and is affecting productivity and quality in developed publications. It has been a noticeable trend across the department that employees are taking increased number of breaks, atmosphere in the work environment is gloomy and there are more in-process meetings scheduled than hours of publication development. Though not every single person shares in the dismal outlook in the department, reports as well as personal accounts of overhearing discouraged employees complain about coming to work have been frequent and consistent over the past 6 months. People should not come to work thinking about what to do after, nor should they dread every moment spent here. C. Supporting Documentation 1. Department of Homeland Security (DHS) efforts to improve morale (Maurer, 2013). 2. When Do Feedback, Incentive Control, And Autonomy Improve Morale (McKnight et al, 2001). 3. Six Effective (and Affordable) Ways to Improve Your Organizations Morale, Motivation, and the Bottom Line (Patkin, 2012). 4. How to improve your teams morale (Jamail, 2011). 5. Management Modeling Training to Improve Morale and Customer Satisfaction (Smith, 1976) 6. 5 ways to improve employee morale and customer service (Bast, 2009). D. Problem Analysis 1. Growth rate within the company seems too long and slow. People may perceive working in this department as going nowhere and with no incentive. 2. Employees may feel underappreciated. 3. Employees may feel they don’t have enough flexibility or creative freedom in this particular work environment. 4. Overall interrelationship between employee and employer seems too distant and uninvolved. E. Potential Solutions As per Cropanzano et al (2001), employee demeanors and attitudes are chiefly determined by the fairness of managerial action towards them. As per Cherenson research study (2002), the most chief factor impacting the repute of a company as a most preferred company to work is the manner the employees are treated with. As per Zappala and Cronin (2002), good relationships with the employees of the company which facilitates the company to enrich further advantages, including enhancing their public image, enhancing the morale of the employees and support from the community in which it functions. As per Murray (2008), about the 33% of the interviewees replied that working for a responsible and caring employer was more important than the salary they earned. One of the fortune 100 companies namely Best Buy is offering ethics training for its employees (Sharma, Sharma, & Devi, 2011, p.9). As per Shadare et al (2009), employees’ motivation is one of the management policies to enhance the efficacy of the job management among employees in organizations. As per Rutherford (1990), a motivated employee is responsive to the specific objectives and goals which he must accomplish, hence, he exhibits his whole initiatives in that way. As per Kalimullah et al (2010), motivation makes an organization more successful since motivated employees are ever searching for enhanced practices to execute a work, as it is imperative for an organization to influence of their employees in that direction. As per Sarah et al (2004), money is the basic incentive, and no other inducement or motivational factor stands even closer to it as regards to its influential value. As per Adeyinka et al (2007), as per Fredric Taylor, money is the chief fundamental factor in motivating the employees to achieve increased productivity. As per Adeyinka et al (2007), research has demonstrated that reward now creates satisfaction of the employee which straight away impacts performance of the employees. As per Reena et al (2009), rewarding a performing employee is the management technique that directly contributes to the company’s effectiveness by influencing group or individual demeanor. All businesses employ pay, bonuses, promotion or other types of rewards to encourage and motivate high-performing employees. As per Adeyinka et al (2007), to employ salaries as a motivator efficiently, business manager must give consideration to salary structures, which must contain significance that the business gives to each job, salary determination as per performance, special or personal allowances, pensions, fringe benefits and so on. As per Baldoni J (2005), motivation in the business in simply and purely a leadership demeanor and it emanates from wishing to do what is right for people together for the company and thus , motivation and leadership are the active process in motivating the employees (Mansoor,2011,p.38). As per Yazdani et al (2011), empowerment offers advantages to organisations and offers a sense of belonging and pride among employees. It offers a Win-Win situation among employees and business organizations. Empowered employees will be focusing on their jobs and work-life with additional significance and this result in the constant growth in work procedures and coordination. With this sense of belonging, employees will exercise their finest thoughts and novelties with the sense of enthusiasm, belonging and happiness, in empowered business organizations. As per Hassan et al (2010), trust can be explained as the observation of one about others, decision to act on the basis of behavior, speech and their decision. If a business wants to grow and to be successful, trust plays a poignant role and hence, it should always be defended to ensure the existence of an organization and to improve the motivation of the employees. Thus, trust can make both interpersonal and intrapersonal impacts and influence on the relations both in the outside and inside of the organization. As per Muhammad et al (2011), a business organization may be defined as composition of individuals which formulate independent business uniqueness for some precise objectives and accomplishing the contemplated goals within defined resources is named as effectiveness. Thus, organization effectiveness is the notion of how efficacy is an organization is in fulfilling the outcomes of the organizational objectives to generate revenue. As per Bulent et al (2009), organization effectiveness plays a significant role in speeding up the organizational growth. As per Mathew et al (2005), organizational effectiveness is the net satisfaction of all participants in the process of collecting and transforming into output in a useful manner. How Employee Motivation Results in Organizational Effectiveness Acknowledgement of Employee Motivation in Organisational Growth As per Maurer (2001), recognition and rewards are crucial elements in improving employee work motivation and job satisfaction which is directly related to organizational accomplishments. Kalimullah Khan carried over an empirical study in which he investigated the correlation between employee motivation and rewards in commercial banks in Pakistan. The above study spotlighted on four kinds of employee motivation and rewards of which one was employee recognition, which evaluated through Pearson’s correlation. The outcomes demonstrated that employee recognition correlates poignantly (0.65) with employee job motivation. (“Kalimullah et al, 2010”). An empirical study was carried over by Reena Ali to investigate the effect of recognition and reward programs on employee’s satisfaction and motivation. 80 employees of Unilever were respondents in the study, and their replies were evaluated through SPSS Version 16. The outcomes of the study demonstrated that there is a statistically significant positive and direct relation between employee motivation and employee recognition. (“Reena et al, 2009”). Employee Motivation in Marks & Spencer Marks & Spencer is an UK based retail chain, which is operating in more than 50 nations offering employment over 82,000 all over the world. M&S is providing share plans to all of its employees. The company sees the employees as a significant feature in their reward package. For senior management and executives, M&S is offering incentive to accomplish long-run success of the business and to assist, retain and attract leaders who are motivated and focused to accomplish business goals, which are intertwined to interest of the shareholders. M&S’s Save As You Earn scheme (SAYE) is an essential part of the Total Reward packages of the company which aims to support and encourage its employees in assuming responsibility for their future financial security and thereby facilitating them to participate in the future success of the business of the company as an employee and also as a shareholder of the company. (Rose, 2014, p.218). As per Bersin (2012) study, wishing “thank you” to an employee after his successful contribution has direct relation the performance of the company and company that is not practicing this is falling behind. Employee recognition market (pin gold watches, placeques and thank-you awards), is worth of $46 bn as of today and the above research demonstrates that companies do spend about 1 to 2% of payroll on such objects. Further 87% of employees’ rewards programs relates to the appreciation of long standing tenure of the employee with the company. Further, the study found that tenure-oriented rewards programs are being implemented by the majority of the companies due to pressure by labor unions compelling the management to award long-tenure employees and hence, this study found that tenure-oriented rewards system has no direct effect on the performance of an organization. However, the above study found that modern, re-engineered recognition programs can have a great effect on business performance. Some companies organize company-wise a conference call on a weekly basis and will recognize somebody’s for their contribution on weekly basis. This not only makes the employee to feel great but also results in motivating others. Further, companies also use “peer-to-peer system where employees can create their own story boards of performance and other can vent their thanks. Some companies give all employees a budget for “dollars” or “points” and this can be given to other employees within seconds and the outcomes this rewarding system is really encouraging. Thus, employees who contribute great things are now visible to other employees of the company. Companies like Intuit and Deloitee have employee recognition programs, which spotlight on company goals (Bersin 2012). In Maslow’s hierarchy of needs, human being’s major two valuable psychological needs are described as the necessary to appreciate and the needs to offer a sense of belonging, and these two needs are now catered through peer-to-peer recognition and thanks. (Bersin 2012). In the above picture, we can understand that benefits and compensation support a basic need whereas career advancement and recognition support the higher-level psychological requirements. Further, the objective of recognition is to push higher magnitudes of “discretionary effort” and such discretionary initiative arises when, we, as employees feel motivated to offer more to the company. (Bersin 2012). Bersin (2012) finds that recognition has a psychological effect on performance. Bersin cites that Oxytocin is the famous “love hormone “present in the human body. Human body secret Oxytocin when an individual feel appreciated or loved. It is to be noted that even when being hugged or shaking someone’s hand also, Oxytocin is being secreted. Bersin found that employees who work under the influence of Oxytocin are more trustworthy and better at work. Bersin 2012 research study found that about 83% of the company it investigated suffers from a drawback in “recognition” and no doubt, these companies are really under-performing as compared to their peers (Bersin 2012). As per Long & Shields (2010), monetary incentives or rewards can enhance the employee performance and motivation as they can satisfy a wide range of high and low level needs. Nonetheless, the use of monetary rewards does not necessarily always result in desirable results. Some research studies have found that monetary rewards do not always enhance employee’s job-associated knowledge, skills and abilities. (KSAs). As per McCloy Campbell & Cudeck (1994), even though, the monetary rewards can motivate employees to work harder, they do not necessarily enhance their KSAs, despite monetary rewards can be used to harness in employee’s training and development. As per Witt (2005), Energy Alloys, a manufacturing company which introduced a reward program namely Energy Bucks Based on the job performance, fake currencies will be offered to employees, and these fake currencies can be used to buy products from the company stores or later exchange it for bigger purchase and due to this, company enjoyed enhanced production and higher profitability (Aguinis, Joo & Gottfredson, 2013, p.243). As per research study carried out by Journal of Economic Psychology, employees give much preference to non-cash rewards and other incentives than for a hike in cash compensation. Thus, non-cash rewards generate a higher measurable increment in productivity than cash does. This is true in case of Texas based environmental service company namely Effective Environment. Each year, the company bears the cost for five employees on an all-inclusive family vacation program. Each of the company’s division managers’ nominates the employees, and their senior management team selects the winners footed upon chiefly on who is supposed to have offered maximum initiatives day in and day out in their work. As per research study carried over by the Incentive Travel Council & Site International Foundation, about 96% of the employees are of the opinion that they are happy with travel incentives and 72% of them informed that due to this, they are having enhanced loyalty to the company. Further, Effective Environmental also offers a liberal pay package which includes payment higher education tuition fees assistance to dependents of the employees and the company also bears 100% cost of its healthcare insurance. Thus, various previous studies have highlighted that bearing of health insurance not only motivates the employees but also acts as the single biggest role in inviting new talent. (Vaccro, 2013). The other salient non-cash rewards are thank-you notes, voice-mail praise, appreciating the employee in company newsletters, wall of fame-photos of successful employees, certificate of appreciation, computer banners, appreciation balloons, and offering time-off for achievers like extra break or 3-day weekend. As per Davidson & Freundlich (2011), Argosy Casino offers cross-training as a non-monetary reward that an employee must earn together with better performance. On receiving such cross-training, the department will add 50 cents to the hourly pay of an employee for each and every new skill added or learned. Due to this creative usage of both non-monetary and monetary rewards, it was reported by the personnel department of Argosy Casino that it witnessed high magnitudes of voluntary involvement in the training program together with enhanced attracted job applicants and retention of the present employees. (Aguinis, Joo & Gottfredson, 2013, p.246). F. Reflection (Conclusion) The majority of our employees and clients are government based. This naturally impacts the way we conduct our business processes and explains some of the reasons for a comparable work environment to that of a government run department. The department is structured mainly in a hierarchal fashion, but the interpersonal relationship between workers and direct supervisors are typically cooperative and well balanced (for the most part). General Atomics – Aeronautical Systems Incorporated (GA-ASI) may follow the following, mainly to increase the employees’ morale and to make them more involvement in their work, and it should be aware of the following happenings in the field employees rewarding practices in the corporate sector all over the world. Murray (2008) found that working for a responsible and caring employer was more important than the salary they earned. Hence, GA-ASI should try to be a more responsible and caring employer. Adeyinka et al (2007) research study has demonstrated that awarding a reward by the management to company is creating satisfaction to the employee which straight away impacts performance of the employees. Hassan et al (2010) study showed that trust can make both interpersonal and intrapersonal impacts and influence on the relations both in the outside and inside of the organization. As per Bulent et al (2009) study, organization effectiveness plays a significant role in speeding up the organizational growth. Kalimullah Khan (2010) research findings demonstrated that there is a statistically significant positive and direct relation between employee motivation and employee recognition. Marks &Spencer’s Save As You Earn scheme (SAYE) facilitated its employees to participate in the future success of the business of the company and this incentive scheme makes them to feel that they are not only function as an employee and but also remain as a shareholder of the company. As per Bersin (2012) study, wishing “thank you” to an employee after his successful contribution has direct relation the performance of the company and company that is not practicing this is falling behind. Bersin (2012) study found that tenure-oriented rewards system has no direct effect on the performance of an organization. Companies also use “peer-to-peer system where employees can create their own story boards of performance and other can vent their thanks. (GA-ASI) should take into account the findings of Bersin 2012 that career advancement and recognition support the higher-level psychological requirements of employees’ and this has been given more priority to enhance the employees’ morale. Bersin found that employees who work under the influence of Oxytocin are more trustworthy, and hence it is suggested that GA-ASI should start showing more love and affection towards employees to increase its production and to boost the employees’ self-esteem. Some research studies have found that monetary rewards do not always enhance employee’s job-associated knowledge, skills and abilities. (KSAs). Hence, GA-ASI may follow the practices of Energy Alloys by motivating fake currencies to performing employees to cash it later mainly to attain enhanced production and higher profitability. Non-cash rewards generate a higher measurable increment in productivity than cash does. GA-ASI may follow the non-cash rewards of Effective Environment company practice of offering all-inclusive family vacation program for the highly performing employees to enhance the loyalty and also should restructure its pay package by including the payment of higher -education tuition fees’ assistance to dependents of the employees and to bear100% cost of employees’ healthcare insurance to make employees to feel happy and to contribute more to the company. GA-ASI may follow Argosy Casino practice, which offers cross-training as a non-monetary reward to its employees to enhance the employees’ involvement. GA-ASI may follow thank-you notes, voice-mail praise, appreciating the employee in company newsletters, wall of fame-photos of successful employees, certificate of appreciation, computer banners, appreciation balloons, and offering time-off for achievers like extra break or 3-day weekend. Thus, by practicing the above method, GA-ASI can try to reduce the scenario of affecting productivity and quality in developed publications. Thus, if the above practices are adopted by GA-ASI, then, it could eliminate the increased number of breaks, to make the atmosphere in the work environment as a pleasant one and there will be less number of in-process meetings scheduled than hours of publication development. References Aguinis, H., Joo, H., & Gottfredson, R. K. (2013). What monetary rewards can and cannot do: How to show employees the money. Business Horizons, 56(2), 241-249. Bast, M. (2009). 5 ways to improve employee morale and customer service. Natural Foods Merchandiser, 30(12), 10. Bersin, R. (2012, June 13). New Research Unlocks the Secret of Employee Recognition. Retrieved April 11, 2014< http://www.forbes.com/sites/joshbersin/2012/06/13/new-research-unlocks-the-secret-of-employee-recognition/3/> Jamail, N. (2011). How to improve your teams morale. Supervision, 72(9), 13-14. Mansoor, Q. A. (2011). Impact of employees’ motivation on organizational effectiveness. European Journal of Business and Management, 3(3), 36-44. Maurer, D. C. (2013). DEPARTMENT OF HOMELAND SECURITY: DHSs Efforts to Improve Employee Morale and Fill Senior Leadership Vacancies. GAO Reports, 1. McKnight, D., Ahmad, S., & Schroeder, R. G. (2001). When Do Feedback, Incentive Control, And Autonomy Improve Morale? The Importance of Employee-Management Relationship Closeness (*). Journal of Managerial Issues, 13(4), 466. Patkin, T. (2012). Tap into the Power of Thanks: Six Effective (and Affordable) Ways to Improve Your Organizations Morale, Motivation, and the Bottom Line. Hudson Valley Business Journal, 1(14), 4. Rose, M. (2014). Rewards Management. London: Kogan Page Sharma, S., Sharma, J., & Devi, A. (2011). Corporate social responsibility: the key role of human resource management. Human Resource Management: Issues, Challenges and Opportunities, 9. Smith, P. E. (1976). MANAGEMENT MODELING TRAINING TO IMPROVE MORALE AND CUSTOMER SATISFACTION. Personnel Psychology, 29(3), 351-359. Vaccro, A. (2013, November 14). What Motivates Employees to perform at their best? Rewards, yes, but perhaps not the kind you would expect. Retrieved April 11, 2014< http://thebuildnetwork.com/team-building/employee-incentive-travel/> Read More