This document discusses the complexities of using rewards and incentives to motivate employees. It cautions against introducing reward programs in an unplanned way, as financial rewards alone do not address human motivation. Intrinsic motivators like autonomy, mastery and purpose are more effective for retaining top talent. While rewards can provide temporary compliance, they do not create lasting change and can undermine relationships and teamwork. The document explores alternative motivational strategies like recognition, feedback and empowering employees. It provides considerations for organizations that choose to implement reward programs.

1. Dr.Sarma
Dr.Sarma 12/21/2019

2. Dr.Sarma 22/21/2019

3. For HR professionals, and managers,
Especially those who have power to
influence behavior of people
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4. Objective is to present a cautionary note about
Introducing employee reward and incentive
plans in haphazard and unplanned way.
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5. Financial rewards and incentives have an
important role to play in employee motivation,
but the human motivation is more complex to
address with carrots and few rewards here and
there.
It is far more important to create opportunities
for personal mastery , autonomy, job purpose,
To retain best talent you hired.
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6. We learnt everything about
the intrinsic and extrinsic motivation
and want apply that knowledge but not
sure how they work
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7. The easiest thing to try is to tinker with
Appraisal system and rewards system
Not bad strategy for survival, must try
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8. Behaviorist theory, derived from lab work with
dogs and monkeys have put forward theories to shape
human behaviour.
what works for animals do not work for humans
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9. Hefty Incentives , paid dinner , paid vacation,
birthday treat , maternity/paternity leaves,
Theme parties , plaques , memento,
Gym membership, reserved parking?
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10. Rewards are like the bait
to humans
 Bearings bank
 Enron
 Lehman
 AIG
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11. Many forward thinking managers ,
those who espouse team-work, participative
management, continuous improvement, and the
like—support the use of rewards to institute and
maintain these very special initiatives .
They simply use rewards as bribes to accomplish
their own goals
.
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12. Reward-and-punishment system
might work for motivating people
to do simple tasks, but it's not so
great for getting people to do
complex work over the long term
Rewards secure temporary mere
compliance.
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13. When it comes to producing lasting change in
attitudes and behavior, however,
rewards, like punishment, are strikingly
ineffective.
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14. Once the rewards lose the shine , people revert to their old
behavior.
Rewards do not create a lasting commitment.
They merely, and temporarily, change a work habit .
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15. Do people who do not aspire to get the reward
have no expectation?
Do they perform at same level or produce more
than those who are used to expecting reward ?
What is the psychology?
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16. There is conclusive evidence that people who
expect to work towards a reward for completing a
task or for doing a task successfully
simply do not perform as well as those who expect
Nothing as reward at all.
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17. Especially when creative work was involved
people performed worse if linked with reward
The assumption that rewards would produce
better output turned otherwise.
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18. Money incentives create pay inequality thereby
creating more heartburns and attrition
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19. “Do this and you’ll get that” is not really very
different from
“Do this or here’s what will happen to you.”
In the case of incentives, the reward itself may
be highly sought after than the goals behind
the reward
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20. By making the reward or bonus contingent on
certain behaviors, managers manipulate their
subordinates, and that experience of being
controlled is likely to assume a punitive flavor
over time.
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21.  Punishment and rewards are actually two
 sides of the same coin.
 Both have a punitive
 effect because they are manipulative.
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22. Feeling of not receiving a
reward one had expected to
receive is worse than being
punished.
If the reward was received
by someone who had not
deserved to get it, the effect
on others is disastrous.
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23. Motivate one and
demotivate 10 others
Higher the desire for the
reward, the more
demoralizing it is to those
who miss out.
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24. Find people who do something right and
reward them for it, expecting repeat behavior
is not very different from
Finding people doing something wrong and
Punishing them with hope to stop that
behavior
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25. Pay is not a motivator.” W. Edward Deming’s
declaration
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26. When group of managers were asked about
what their subordinates and colleagues value
the most ,
Their response was pay
When asked directly, their colleagues ranked
pay as 5th item
But ranked good boss as first
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27. Relationships among employees are often
casualties of the scramble for rewards.
Kindles jealousy
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28. Peter R. Scholtes, senior management
consultant at Joiner Associates Inc., put it
starkly,
“Everyone is pressuring the system for
individual gain. No one is improving the
system for collective gain. The system will
inevitably crash.” Without teamwork, in other
words, there can be no quality.
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29. Competition VS collaboration
Worst is to link appraisal with salary hikes
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30. For every one person rewarded
there are 10
who go disappointed
Win / Lose Paradigm
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31. Below par performance -Culture of Lack of
collaboration and more of confrontation
Conflict of Short term Vs. long term goals
Just rewarding is not going to solve these issues
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32.  Managers often are tempted to use incentive
systems as a substitute for giving the right
recognition .
In the African swahili culture Sikhona, which
means “I am here to be seen”; and the other
part is Sawubona, which means “I see you.”
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33.  With strong positive feedback, emotional and
social support, and autonomy on the job
more could be achieved.
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34.  So managers resort to easy option of
dangling carrots
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35.  Author Carla O’Dell reports in People,
Performance, and Pay that a survey of 1,600
organizations by the American Productivity
Center discovered little in the way of active
employee involvement in organizations that
used small-group incentive plans.
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36. Jone L. Pearce, associate professor at the
Graduate School of Management, University of
California at Irvine, observed in
“Why Merit Pay Doesn’t Work: Implications from
Organization Theory,”
pay for performance actually “impedes the
ability of managers to manage.”
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37.  Dilemma is should there be a reward
programme at all? If so is it?
 Individual or team rewards?
 Cash or non cash? Low cash
 All levels or limited levels? Limited exclude
seniors
 How often? As often
 What if business goes down? keep the
minimum affordable , those are value driven
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38.  Few strategies that work :
 Mix individual with team rewards. low on
individual
 More of team if you wish to promote team
culture.
 Link your company values to reinforce
behavior.
 Plenty of of recognition thank you cards .
 Proliferate and cover 80 Percent of population
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39.  Identify one goal for each type of reward
 Market the rewards internally / abundant
communication
 Link every reward plan with one value
 Have clear process laid down for selection
 Team for decision
 Consistent and continuity
 Have adequate budget
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40.  Value -you may take mastekeer out of Mastek
but not mastekeer out of him.
 Run time- as global event –employees,
Customers, families, employees, share
holders
 Huge budget
 All people in one place , share rooms with
directors.
 3 day event
 In the five star location
 HR driven event
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41. Short- less than
month
Medium -6
months >
Long =
>1 year
Individual Recognitions
Anniversary/birt
hday
Specific
objective driven
Employee of the
year
Team Event driven Team success-
value driven
Team of the
year
Corporate Bonus
/incentives
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