Impact of Reward System on Workplace Behavior

Table of Contents

Introduction3

Discussion3

Motivation and Employee Behaviour4

The Theory of Achievement5

The Theory of Targeting5

The Expectations Theory6

Principles of Effective Motivation6

Reward Systems7

The Extrinsic Rewards8

The Intrinsic Rewards9

Good Rewards System10

Reward System and Employee Behaviour11

Impact of Rewarding on Workplace Attitudes, Behavior and Motivation13

Impact of Reward on Attitude13

Impact of Reward on Behavior14

Influence of Reward on Motivation14

Impact of Financial and Non-financial Rewards on Workplace Behavious14

Rewarding Employees and the Efficiency15

Conclusion17

References18

Impact of Reward System on Workplace Behavior

Introduction

The paper attempts to enlighten and explore the impact of reward and incentive systems on workplace behavior in a holistic context. The paper highlights the various methods used by employers to reward their employees for positive performance. The basic theories of motivations are explained in relation to the impact of reward system on workplace behavior. Various motivational factors are discussed in this paper along with the principle of effective motivation in workplace. The paper provides the in depth analysis of reward systems as well as discusses the concept of extrinsic and intrinsic rewards. It also presents a good reward system and discusses the reward system in relation to the workplace behavior. The impact of reward system on the attitudes, motivational levels and the behaviors of employees are discussed. The paper also highlights the concept of financial and non-financial rewards and their impact on workplace behavior.

Discussion

The fixed remuneration was a product of early twentieth century to reward the work routine and repetitive employees. To operate within certain operating standards, organizations have a system of rewards (incentives to encourage certain types of behaviors) and punishments in order to limit the behavior of individuals (Bloom & Milkovich, 2009).

The "reward system includes the total package of benefits that the organization makes available to its members, and the mechanisms and procedures to distribute these benefits. Not only are considered wages, holidays, promotions to higher positions (with higher wages and benefits) but also some rewards as a guarantee of job stability, lateral transfers towards more challenging or to positions that lead to progress, further development and various forms of recognition for outstanding services. (Cameron & Pierce, 2002)" Moreover, the system of punishment includes a number of disciplinary measures aimed at guiding the behavior of employees that deviate from the expected routes and to prevent recurrence (verbal or written warnings) or in extreme cases, to punish recidivism (work stoppages) or separate from the company of others to charge (termination of the organization) (Kessler, 2001).

Today, most successful organizations are directed quickly to flexible programs and variable remuneration, able to motivate, encourage and inspire the enthusiasm of the people. The basic concept is that motivated employees are the ones that are productive (Weiss, 2000). Nevertheless, motivating employees by way of rewards system is an important area of consideration for the employers. All incentive schemes for employees have similar purposes or goals (Cameron & Pierce, 2002). First, try to encourage behaviors that lead to the achievement of individual or organizational goals that are significantly above and beyond normal job responsibilities. For example, the company may wish to increase its ...