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Pay for Performance why it doesn't work in the Workplace - Essay Example

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The article begins with an analysis to show the widespread payment for performance by managers and consultants involved in setting of payments for workers. This is tied to the belief that “organizations must give the greatest to who perform the best” and “the more closely…
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Pay for Performance why it doesnt work in the Workplace
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Pay for Performance why it does not work in the Workplace The article begins with an analysis to show the widespread payment for performance by managers and consultants involved in setting of payments for workers. This is tied to the belief that “organizations must give the greatest to who perform the best” and “the more closely performance, the more powerful its motivation effect” (p 120). The other believes that the basis for this motivation is behaviorism, which is pervasive and has axiomatic precepts. The other basis for a reward system is Theory X by Douglas McGregor stating that people do not like working and has to be controlled and coerced to get anything done. To show the extensive use of the reward system, the author writes on using rewards to recognize teamwork, monetary rewards for employees for undertaking trainings and gaining new skills.
The author states that rewards often impede than they enhance performance on many tasks with specific emphasis to those that require creativity with the example of Japan and Germany countries that do not use reward incentives and are successful in employee motivation. The other further explores the fact that there are no empirical studies linking motivation to rewards showing poor implementation of compensation systems. In fact, research by Jenkins in 1986 shows no relation between quality performance and rewards (p 124). In a case where incentives were withdrawn, production decreased then after sometime rose to reach a better level than when there were incentives further showing that incentives do not motivate workers for quality or higher productivity (p 124).
The author then delves into the reasons for the failure of incentives including lack of necessity that is the introduction of incentives unnecessarily resulting in lack of any impact on performance. The second reason is secrecy where there is no transparency on each employees earning leading to overestimation and belief of differences in pay resulting in low morale and turmoil at the workplace. Other reasons are lack of match between performances and pay and expense in rewards solved via using noncash rewards. The other reason is too big versus too small incentives where small incentives do not have an impact while large ones are not received by all the workers resulting in failure of incentives to motivate performance. Short-term versus long-term incentives are the other reasons for incentives failure where employees may make decisions countering long-term interests when incentives base on short-term performance. Objectivity versus subjectivity, performance evaluation being a futility, and that pay is not a motivator since money is not the only motivator in life is the other reasons for failure of the incentive system. The author analyzes the different reasons that have showed the need for better working conditions and other factors other than monetary rewards for better performance, but also states the need for adequate and fair compensation. He believes assuming “money is what drives people is adopting n impoverished understanding of human motivation” (p 134).
The author then articulates the problems of rewards at the work after explaining the nine reasons for failure of incentives to motivate employee productivity. That rewards punish employees whose performance are below a set level is the first problem of rewards and is unpleasant, disrespectful, and offensive resulting in failure of incentives to spur productivity. The other problem of rewards is that it ruins relationships, as employees will fail to cooperate aiming to gain the rewards for individual performance reducing the overall productivity. Creativity declines with rewards due to the reduction in risk taking for employees take ion tasks they are asked to do only to attain the rewards. Willingness to do other things to spur quality is reduced by rewards at the workplace. The last reason for failure of reward system and the problem of rewards is that rewards undermine interest in the job and its performance.
The other also points to the fact that “incentive plans do not respond to the extrinsic orientation exhibited by some workers so much as they create this focus on financial factors” (p 141). The article concludes with the assertion that Behaviorism has had a major impact on work through incentive plans and other programs but has not been effective in delivering the desired results. This is evidenced by the failure of the incentive system to spur quality performance at the workplace. Read More
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