The Way Incentives Work and Types of Motivation Problems - Research Paper Example

Organizational ChangeLow morale and absenteeism of are serious problems of the small privately owned property management company that cuts across housing industry. The yearly costs of low morale and absenteeism in the United States are estimated to be $29 billion and a change of 4.99% in the national absence rate changes the gross national product by $10 billion. (London, 2003) A great number of studies are done to identify the determinants of low morale and absenteeism. Many variables are found to be considerably related to indices of absence, the results appear to be unstable across situations and time.

The Way Incentives Work Every incentive program is based on a formula for enhancing motivation that engages four fundamental variables: effort, performance, outcomes, and satisfaction. The logic behind these programs goes something like this: employees at Property Management Company will put in the accurate quantity of effort to meet performance hopes if these part time employees at the small privately owned property management company obtain the types of outcomes that include pay raises and promotions which will provide part time employees satisfaction.

(Hanlan Marc, 2004) In simpler words, the property management company should provide its employees what they want, and employees will work hard to get it.Effort => Performance => Outcomes=> SatisfactionConversely, the problem with most incentive programs like of Property management company is that they center exclusively on the submission of outcomes and overlook the three beliefs that are the key to making the motivation solution work: Can one do it?Will outcomes be tied to one’s performance?

Will outcomes be satisfying to one? (Cameron, 2002)The first conviction compacts with the relationship between employee effort and performance. The second compacts with the relationship between performance and outcomes. And the third compacts with the relationship between outcomes and satisfaction. These three beliefs form the basis of the belief system of motivation and performance.Accepting that these beliefs are decisive preconditions for motivation helps to explain why incentive programs generally yield such lackluster results like in case of Property Management Company Since employees do not always hold these beliefs to be true, attempts to improve motivation by using incentives cannot make the grade, even when the incentives are highly desirable ones.

(Thomas, 2004)Types of Motivation Problems One cannot do itMotivation problem: Lack of confidence Associated feelings: Self-doubt Anxiety Frustration Outcomes are not tied to one’s performanceMotivation problem: Lack of trust Associated feelings: Skepticism Disbelief Mistrust Outcomes will not be satisfying to oneMotivation problem: Lack of satisfaction Associated feelings: Anger Rebelliousness Low Morale and Absenteeism High commitment and a high level of dynamism are extremely important at every level in any organization.

Existing reward strategy of fixed time basis doesn’t seems to be supplementing this. It is recommended that the share of fixed salary in their income should be reduced to a considerable amount and they should be offered a reward system which is related to company profits. (Butkus, 1999) Linking their pays to company profits will get them to work with a commitment to work hard. Because the more they will work the more the company will make profit and more will be their income. Only a few allowances/fringe benefits should be offered to them as fixed salary.

ReferencesButkus T. Raymond, Thad B. Green, (1999), Motivation, Beliefs and Organizational Transformation. Quorum Books. Westport, CT. Cameron Judy, Pierce W. David, (2002), Pay and Motivation: Resolving the Controversy. Bergin & Garvey. Westport, CT. Hanlan Marc, (2004), High Performance Teams: How to Make Them Work, Praeger.London Manuel, (2003), Job Feedback: Giving, Seeking, and Using Feedback for Performance Improvement, Lawrence Erlbaum Associates.Thomas Neil, (2004), The Concise Adair on Teambuilding and Motivation, Thorogood.