Reward and motivation in an organization
In recent time, organizational environment highly depends on the work motivation of its employees. Motivation in an employee is crucial for the success of organization. Although organization reach to its success without properly motivating the employees but it will not be able to achieve it at full potential. Therefore, the right kind of financial and non-financial rewards can boost the motivation of employees at workplace. Employee being a human being always wants to be get reward and encourage for their efforts. In this way, motivation and reward has a strong link that can prove best for the organization. Employee also commit with the company when they feel motivated. It also helps in fulfilling the specific needs of employees in the organization (Hwang & Jung, 2018).
Motivation is an essential tool in the organization to improve performance of employees and productivity of the organization. There are two theories of motivation. Content theory of motivation put emphasis on the internal factors such as needs, instincts, satisfaction and some features of job that assist in giving the energy to employees. It tries to put emphasis on why the needs of person changes regularly by the passage of time. In this way, it focus on some of the factors that assist in motivating the employees. It includes various motivation theory such as Maslow (includes five function such as love, safety, esteem, physiological and Self-actualization), Herzberg (include two factors: motivators and hygiene factors), McClelland (Need for affliation, achievement, and power), and Alderfer theory (it includes existence, growth, and relatedness needs). As compare to this, Process theory of motivation put emphasis on the process through which cognitions and internal factors influence the employee motivation (Lazaroiu, 2015). Process theory includes various motivation theories such as Adam’s Equity theory (It explains how people struggle for justice and fairness in the give and take relationship), Goal setting theory (self-efficiency and goal commitment are two eventualities in this theory), Vroom’s expectancy theory (it depends on the key constructs such as expectancy, valence, and instrumentality). A compare to content theory, this theory tries to explain how the behaviour of individual changes and why person act in various ways. By highlighting this, it put emphasis on how the needs of individual influence their own behaviour (Shield et al, 2015).
It is true that reward is directly linked with the motivation of employees. Whenever employee gets the reward in the form of financial or non-financial, they directly get motivated. There are two types of rewards. In this way, rewards are said to be benefit that arise by the performance of task, proper discharging of any responsibility or rendering of any service in appropriate way. The first one is extrinsic reward that includes financial, social and material rewards. In this way, an intrinsic reward is the intangible form of reward (Yoon et al., 2015). It usually arises from the person internally who is doing the behaviour. As compare to this, extrinsic reward is a tangible form of reward given to the employee for achieving something. It not comes from the inside, as employee will be given reward for doing something good in job. Among both of these, pay is the most influencing and motivating benefit that an employee receive in return for performing any service and task. However, it can also prove to be the demotivator sometimes if employee will not satisfy from the pay (Falola, Osibanjo. & Ojo, 2014).
Rewards sometimes become the reason for the motivation of employees. Whenever any behaviour or activity is motivated by the rewards, it is always the extrinsic reward. A well-designed reward system in the organization motivates the employees and builds the positive response toward the job. It also leads to better and higher performance of employees that put direct impact on the better productivity of the company. There are times when employees get motivated by getting appreciation. Usually, employees get motivated by receiving something in monetary terms (Porter, Riesenmy & Fields, 2016).
In the limelight of above discussion, it can concluded that motivation is a great tool to increase the productivity of the employees. It also helps in bringing the growth in organization. In order to motivate the employees in an organization, it is essential link attach some rewards in monetary and non-monetary terms. Sometimes, employees get motivated by getting appreciation from their senior management. As compare to this, there is time when employee gets motivated by getting reward in financial measures.
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Hwang, S. & Jung, H. (2018). The Interactive Effects of Motivation and Contingent Rewards on Employee Creativity. International Journal of Industrial Distribution & Business, 9(7), 71-82.
Lazaroiu, G. (2015). Work motivation and organizational behavior. Contemporary Readings in Law and Social Justice, 7(2), 66.
Porter, T. H., Riesenmy, K. D. & Fields, D. (2016). Work environment and employee motivation to lead: Moderating effects of personal characteristics. American Journal of Business, 31(2), 66-84.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P. & Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies. United Kingdom: Cambridge University Press.
Yoon, H. J., Sung, S. Y., Choi, J. N., Lee, K. & Kim, S. (2015). Tangible and intangible rewards and employee creativity: The mediating role of situational extrinsic motivation. Creativity Research Journal, 27(4), 383-393.