ORGANIZATIONAL BEHAVIOR - Essay Example

Organizational Behavior: A Problem on Incentives, Motivation and Workplace Performance A Problem on Incentives, Motivation and Workplace Performance In a study conducted by Stolovitch, Clark, and Condly (2008) entitled “Incentives, Motivation & Workplace Performance” and published as an executive white paper for The Incentive Research Foundation, the authors clearly established that organizations encounter problems pertaining to “lack the knowledge or will to create properly constructed (incentive) programs that yield desired results” (Stolovitch, Clark, & Condly, 2008, par. 1). The findings revealed that “incentive programs can boost performance by anywhere from 25 to 44 percent, but only if conducted in ways that address all issues related to performance and human motivation” (Stolovitch, Clark, & Condly, 2008, par. 1). In this regard, the current essay hereby aims to discuss the business problem and apply the motivational concepts discussed in Robbins and Judge (2008).

The problem identified in the study focused on the inability of organizations to appropriately and effectively design an incentive program that would relatively and directly increase work performance. As proffered, “numerous researchers have studied the impact of incentives and related programs for at least 100 years without establishing a clear consensus among business circles as to whether or not incentive programs deliver measurable and meaningful performance results” (Stolovitch, Clark, & Condly, 2008, par. 3). To address this dilemma, the authors specifically sought to answer four questions, to wit: “Do incentives increase work performance (and under what circumstances)?

Which incentive programs are most effective? What types of organizations need incentives? And what model best expresses how to select and implement successful programs?” (Stolovitch, Clark, & Condly, 2008, par. 4). Through the use of a meta-analysis that incorporated 45 existing studies on the subject, the authors further sought to establish conclusive findings through conducting surveys on the Internet and telephone from 145 U.S. organizations that have been evaluated to use incentive systems (Stolovitch, Clark, & Condly, 2008, par. 7). Accordingly, through the application of relevant motivational concepts such as the use of rewards to motivate employees and engaging employees or increasing involvement in the work setting.

As indicated, incentives programs had the ability to: (1) improve performance; (2) engage participants (consistent with the theory of employee involvement; and (3) attract quality employees. Concurrently, other findings that were revealed were: (4) longer-term programs outperform short-term programs; (5) both executive and employees value incentive programs; and (6) quota-based incentive measures work best (consistent with goal setting and provision of rewards). The authors established that through an effective design of incentive programs, organizations could use them to maximize the potentials of their human resources and seek the achievement of organizational goals.

Accordingly, an eight-event PIBI (Performance Improvement By Incentives) Model was developed to assist business practitioners in the development of the most effective incentive schemes. This model required observance and adherence to the following steps: (1) assessment (between organizational goals and employees’ performance); (2) program selection (establishment of clear goals and an appropriate reward system); (3) communicating the organization’s work value; (4) establishment of clear communication and effective training; (5) provision of support; (6) encouragement through emotional appeal; (7) measurement of “three motivational outcomes: active choice—choosing to do the targeted work in the intended manner, commitment—persisting over time, and mental effort—thinking clearly” (Stolovitch, Clark, & Condly, 2008, par. 24); and (8) regular analysis and solicitation of feedback.

ReferenceRobbins, S.P. & Judge, T.A. (2008). Organizational Behavior. Prentice Hall.Stolovitch, H., Clark, R., & Condly, S. (2008). Incentives, Motivation and Workplace Performance. Retrieved February 8, 2012, from Incentive Performance Center: http://www.incentivecentral.org/employees/whitepapers/incentives_motivation_workplace_performance.1824.html