Essay About Impact Of Different Motivational Strategies And Companys Compensation

Workplace Motivation Case
Workplace Motivation Benjamin EnumaPSY/320February 9, 2015Thomas GrebouskiThe dictionary Websters defines motivation as “something inside people that drives them to action.”  Motivation (Extrinsic and Intrinsic) plays the essential, but different roles of inspiring and compelling employees to do their tasks and be productive. Using a real-life example, this paper will examine the impact of different motivational strategies on productivity in the workplace, organizations efforts to improve employees’ performance, employees opposition to increasing productivity, and the managements idea of motivation and its practices. It will conclude with the consideration of the effects of applying motivational theories not currently practiced in the workplace and what impact these motivational theories would have both on management and employees.Management’s Philosophy of MotivationIn most economies of the world, money remains a foremost factor of motivation, but some researchers think it does the opposite.  Recent studies indicate that extrinsic rewards such as salary, job security, work environment, fringe benefits, are too narrow and can no longer guarantee employees’ loyalty and commitment. I once worked for an organization (Citizens Int’l Bank Ltd) known for its aggressive approach to target achievement and emphasis on payment of stupendous bonuses. Apart from allocating stretching targets for its marketing team, every employee, including those in the back office (operations) must bring deposit customers to earn their annual incentive. The pressure to achieve target was so strong that some employees resorted to the use of unethical and immoral means to get customers. As a member of the operations team, my annual pay could be tripled if I meet my deposit target. Though, the various motivational strategies yielded some immediate results, the long-term effect left much to be desired.  For instance, the companys compensation was very competitive and included a procedure for yearly individual performance evaluations and upward review of salary. Employees’ salaries are reviewed using final rating index given by line managers. The performance index is derived from the percentage of achievement of set objectives. There are four rating scales used in appraising performance. The first is below expectation (those who achieved less than 85 percent of set objectives).  Second is mostly meeting expectation (those who achieved more than 85 percent but less than 100 percent of set objectives). Third, is fully meeting expectation (those who achieved 100 percent of set objectives). Fourth, is exceeding expectation (those who achieved more than 100 percent of set objectives). Following the final calibration by management, annual pay adjustments are given based on the employees overall performance rating. In fact, the company rewarded individuals based on their performance, skills, and contributions. The companys focus was to maintain an overall working environment that was team-oriented yet recognizes individual contribution. Therefore, teams and individuals who achieved their goals and teams which exhibited above average performance received exceptional bonuses. These bonuses could be as high as three times annual salary.