Motivation and Reward Systems Research Paper Example | Topics and Well Written Essays - 1500 words

Motivation and Reward Systems - Research Paper Example Rewards are classified into two groups, namely, extrinsic (e.g. promotions, salary increases) and intrinsic (e.g. job satisfaction, enhanced self-confidence). Intrinsic rewards arise from the interplay between the job and the individual. Fundamental intrinsic aspects involve knowledge of outcomes, accountability, and meaningfulness (Rothwell & Kazanas, 2003, 234). Knowledge of outcomes is associated with feedback on employee performance. Accountability is related to the extent employees feel responsible for the outcomes of their performance. Meaningfulness refers to the extent employees see their job as valuable. In order to build employee motivation, a job should substantially possess all three aspects. It must involve a variety of tasks, generate concrete outcomes, and affect others (Rothwell & Kazanas, 2003). These aspects are associated with meaningfulness. The work must also result in self-reliance. This aspect is associated with accountability. Ultimately, the job must give way to feedback on performance. This aspect is associated with knowledge of outcomes. Extrinsic rewards must satisfy five conditions, namely, significance, flexibility, frequency, visibility, and expense. In terms of significance, members of the organization should give importance to the possible rewards arising from their performance. With regard flexibility, because individuals differ in the forms of rewards they want, an effective reward system should accommodate individual differences (Griffin & Moorhead, 2011).... Meaningfulness refers to the extent employees see their job as valuable. In order to build employee motivation, a job should substantially possess all three aspects. It must involve a variety of tasks, generate concrete outcomes, and affect others (Rothwell & Kazanas, 2003). These aspects are associated with meaningfulness. The work must also result in self-reliance. This aspect is associated with accountability. Ultimately, the job must give way to feedback on performance. This aspect is associated with knowledge of outcomes. Extrinsic rewards must satisfy five conditions, namely, significance, flexibility, frequency, visibility, and expense. In terms of significance, members of the organization should give importance to the possible rewards arising from their performance. With regard flexibility, because individuals differ in the forms of rewards they want, an effective reward system should accommodate individual differences (Griffin & Moorhead, 2011). As regards frequency, the mor e frequently rewards are granted and the more immediate they follow performance, the more successful they are expected to be. However, several rewards become ineffective when granted habitually. In terms of visibility, rewards are boosted when other individuals are aware of them. And lastly, as regards expense, the organization should be capable of giving out rewards (Rothwell & Kazanas, 2003). The Truth about Money as a Motivator and a Type of Reward Monetary rewards can raise motivation. Individuals need financial resources and hence desire money. Financial incentives can build motivation but it is not the sole driver of motivation. Wallace and Szilagyi explained that financial aspects can fulfill several