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¶ … Incentive Plans Cannot Work
Employees of a particular corporation have to perform their job duties, for which they receive the salary. The motivational aspect, or in other words, what motivates an employee to do his assignments in a quantitative, qualitative and in time manner, is a very debated subject among Human Resources specialists, psychologists and managers. We will discuss a few contra-arguments for using an incentives motivational system, proposing in the end an optimal solution.
Workers, both at superior or inferior level of the corporation, must be motivated in the work. However, not all incentives are well perceived by the employees. Financial motivations, in the form of bonuses, trips, other facilities, distort the working relationship between colleagues resulting to tensions. Also the financial incentives create pressure on the individual for performing a certain task for which he will additionally be paid. This may reach its objectives on the short -term, when for different reasons, the material aspect may prevail. But on the long-term, the stressful situation of material motivation can not last very long. From different studies and research paper conducted in the field, we find out that employees feel manipulated to do a certain assignment, which his superior could not do or does not want to do it. For this reason, he is entitled to an additional sum of money, bonuses and other motivational elements. Also, on the long-term, people will tend to lose focus on what makes them perform their daily activities - the passion for their work and not the salary and the compensation packages.
A solution for solving this issue would be that managers will implement an organizational framework that will favor team work and collaboration, offer incentives for original ideas, both at the individual and collective level and make the employee explore different methods from which the company may benefit from. This is the right alternative, so as to achieve long - term equilibrium between company's and employee's expectations and needs.
Incentive Plan at Watson Pharmaceutical Watson Pharmaceutical Company is located in Corona, California and is a leading company worldwide for pharmaceutical products. The organization develops, manufactures, markets and distributes generic pharmaceutical drugs specialized in women's health and urology, in the United States and throughout the world ("About Watson," 2010). Watson utilizes an incentive plan to motivate their employees to work harder and achieve their sales goal. The incentive plan motivates the
It is also worth considering that the effectiveness of a team-based incentive plan is dependent on the size of the team. Some companies will utilize an organization-wide incentive plan. Such plans can be too far removed from individual performance to be an effective motivational tool. For example, if a company with national scope has an incentive plan that is also national in scope, it can be difficult for employees in
organization's ability to recruit and retain talented employees requires ensuring employees are rewarded proportionately for their contribution towards achieving organizational goals and profitability. To achieve this, a benefits and compensation policy is developed and implemented for all workers. This company has established a compensation policy that offers a full range of conventional benefits, dental, vision and medical benefits in addition to a rewards program that offers incentives based on
Incentives and Disincentives Use of incentive contracts A properly structured supply contracts have proved to be indispensable to successful procurement. By putting in shape the responsibilities as well as promises, contracts are believed to safeguard each and every entity in a procurement undertaking in opposition to the risk of unanticipated changes in the prospect behavior of business associates, thereby paving way to secured as well as efficiently arrangement, invest, along with produce
Employee Stock Ownership on Employees in the Airlines Industry since September 11th. Review current materials on the issue. Airline industry ESOPs tend to be very volatile. This paper will examine the effects of the September 11th tragedy on employees' employee stock ownership plans in the airlines industry. The following generic information is provided for background before examining the main issue for this paper. In the United States, the main vehicle for employee ownership
Profit Sharing and Other Incentives as Employee Development Performance Motivational Tools and the Relationship between Managerial Support and Employee Commitment to the Organization The impact of profit sharing and other incentives on employee development and organizational growth is measured in various companies around the world. From Keller Williams to Southwest Airlines companies are utilizing incentives, such as 401ks, profit sharing plans, insurance plans, even pre-tax commuter benefits, because like Southwest