4. Cultivating Motivation
The Best Practice
A study that paves the sample into three
quartiles based in EBITDA that the top
quartile experience real financial upside
due to distinctive motivational practices.
(Smet, Palmer & Schaningar, 2007)
5. Cultivating Motivation
Keeping Abreast with Changing Needs
TQM practices to manage the organization’s
reward system
• 75% of the 1000 largest US companies
were using &
• 78% planned to increase the use in the
near future.
8. Non-Monetary Rewards
• Recognition to acknowledge achievement of goals such as,
certificates, letters, complimentary tickets, etc.
• Celebrations such as, Lunches, dinners, special events, etc.
• Regular expressions of appreciation by managers/leaders
to
• 360’ performance appraisals
• Participation in decision making and autonomy
• Quality-based promotions rather than quantity-based
goals
9. Monetary Rewards
• Profit sharing
• Bonuses
• Compensation time
• Individual-based Performance system
• Quantity-based performance appraisals
10. Advantages of Monetary Rewards
• Former CEO Avon, hicks Waldron said “people do what
you pay them to do, not what you ask them to do”
• Not surprisingly, organizations that provide higher pay
levels and tie it to performance, achieve high profitable
returns
• they help meet the basic needs of life; food, shelter and
clothing.
• They ensure wellbeing of familial life and raise social
status standards.
11. Disadvantages of Monetary Rewards
• They don’t improve the KSAs of employees
• They do not contribute to job enrichment
• Sometimes, these trigger unethical and
counterproductive behaviors at the part of the
employee
12. Best Practices
• Standardize a quantifiable method to measure
performance with approximate accurately
• Reward employees in a timely manner based on regular
performance evaluations and feedback
• Promise deliverable rewards only and communicate to
employees timely
• Use a blend of monetary and non-monetary rewards –
so as to maximize performance.
13. Best Practices
• Standardize a quantifiable method to measure
performance with approximate accurately
• Reward employees in a timely manner based on regular
performance evaluations and feedback
• Promise deliverable rewards only and communicate to
employees timely
• Use a blend of monetary and non-monetary rewards –
so as to maximize performance.
14. Culture and Rewards
Regional, National, Religious, Geographical
Reward preferences vary from culture to culture
Masculine Culture - Individualist
Feminine Culture - Collectivist
Individualists prefer Monetary rewards
Collectivist prefer Non-Monetary
15. Culture and Rewards
UK, Canada, Finland and Hong Kong, divided by Masculine,
Feminine, Individualistic and Collectivist cultures
• In general Finland (Feminine culture) was found differing.
Finland-UK, Finland-Hong Kong and Finland-Canada
comparisons reveal that inclination towards the non-
monetary rewards, held more preference for feminine
cultures.
• Masculine Cultures like Hong Kong preferred financial
benefits more.
• All the same, the Finnish did not fancy extrinsic rewards,
as much as the Canadians
(Masculine and Individualistic culture).
16. Reward Climate and SQO
The rule of reciprocity in creating Job satisfaction and
organizational commitment
• According to the law of reciprocity the more the
organizations accommodate employee needs and
rewards their efforts, the more the employees strengthen
socio-emotional bonds.
17. Conclusion
• Quality performance is driven by Motivation
• Motivation is driven by Rewards
• Reward Preference varies from culture to culture
• Monetary rewards have both, pros and cons
• The blend of Monetary and non-monetary rewards is
considered best practice in driving employee motivation
