Managerial Psychology as a reason forpoor incentives!!

1. Managerial Psychology
as a reason for
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2. —MARCUS BUCKINGHAM
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3. Managerial Psychology
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4. The definition of incentive is something that
makes someone want to do something or work
harder.
An example of incentive is extra money offered to those employees
who work extra hours on a task.
Incentives

5. A meta-analysis of 40 years of
research on financial incentives
and performance yielded only
39 studies, about one per year.
1200 sessions at the 2013 annual
meetings of the Society for
Industrial and Organizational
Psychology (SIOP), only three are
related to compensation,
rewards, or benefit.
Of 111 articles published in
Personnel Psychology in 2003 –
2007, only two focused on
compensation issues; the parallel
proportion was seven of 457 in
Journal of Applied Psychology
Incentives
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6. But it is proved that incentives schemes increase the workers efficacy.
Incentives schemes failed to get attention of the managers.
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7. Importance of Compensation
One report suggested that teachers who were given incentives at the beginning
of a school year, but had to return the incentive money if they did not meet
performance goals during the year, outperformed teachers were simply promised
an incentive at the end of the year if performance goals were met.
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8. Importance of Compensation
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9. Importance of Compensation
In virtually every aspect of organizational functioning, compensation
can reform employee behavior and organizational effectiveness.
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So, we can say that compensation systems could be
powerful tools in motivating a multitude of
desired behaviors.

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Dilute employee performance consideration factors
Many managers and supervisors labor under the mistaken impression that the
level of employee performance on the job is proportional to the size of the
employee’s pay packet.
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23. ???

24. Hierarchy offers more than one manager
in managerial duties. Every manager has
different psychology of management.
Every manager is not equal to his/her
subordinates.
Hierarchy in organization

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We Managers can not ignore his/her
human nature. Every people has a soft
corner for a group of employees. Like if
the manager and the employee are from
the same region then manager might give
some extra favor to that specific employee.
Favoritism

26. We Governing body and the shareholders
of an always desire highest output from
the organization and that responsibilities
lies on manager’s shoulder. High workload
limits the time and available cognitive
capacity of manager. So mangers have to
deal with the short term incentive systems.
High workload of manager

27. Manager’s position of control, pursue
their own interests with limited
resources tend to continuous poor
incentive system.
Manager’s position of control

28. I propose that managers have a propensity to design systems that
might failed by over-emphasizing financial and material
compensation, because no extrinsic incentive is necessary to motivate
employees because employees would be more responsive to social
and relational rewards. Indeed, the design and implementation of
compensation systems not only can affect employee motivation, but
also can be harnessed to improve safety, quality, creativity, innovation
and a successful outcome.
Conclusion