Organizational Citizenship Behavior Management: Pros And Cons Of Financial Incentives

Discussion

Discuss about the Organizational Citizenship Behavior Management.

The employment relationship existence is such a condition that can easily determine the application of the social security as well as the labor law provisions resolved towards the workers (Pinder 2014). Organizations always focus on improving the employment relationship to arrange huge manpower for executing their business operations. Thus, the improvement of employment relationship can be accomplished by motivating the organizational employees. However, in order to motivate the employees, money as well as the other financial rewards is the basic or the fundamental factor of establishing proper employment relationship. On the other hand, in this regard, the monetary incentives and the financial rewards can also be considered as the factors which are effectively utilized to motivate the employees (Bolino et al. 2013).

 Hence, this study is mainly aimed to properly demonstrate and critically analyze the pros and cons of the monetary incentives and financial rewards over the process of managing the employment relationship. Therefore, this study is also aimed to be undertaken with the help of the proper critical approach. In addition, this study also evaluates the important organizational problematic scenarios and formulates the proactive managerial interventions with the specific and special sensitivity to the social, ethical and cultural concerns.

Employment relationship is the legal connection between the employees as well as employers. It has the existence while a person performs services or works under the specific conditions for remuneration. According to the viewpoint of Miner (2015), it is the major point of reference to determine the extent as well as the nature of the obligations and rights of employers to their employees. The employment relationship existence is such a condition that can easily determine the application of the social security as well as the labor law provisions resolved towards the workers. According to the point of view of Wagner and Hollenbeck (2014), this particular term is becoming more essential as of the increasingly widespread phenomenon of the dependent workers who lack the protection due to the combination of few significant factors. Firstly, these factors incorporate the fact that the law’s scope is very narrow or it is interpreted very narrowly. In addition, the ambiguous and poor formulation of the law is also a significant factor that is resulted due to the unclear scope of the law (Bolino et al. 2013). However, in order to address such consequences, few recommendations are also aimed to be applied over the scope of employment relationship.

Pros of Financial Incentives

After discussing the term, “employment relationship” in a brief as well as detailed manner, it can easily be stated that the organizations should always focus on improving the employment relationship to arrange huge manpower for executing their business operations (DuBrin 2013). Moreover, the enterprises keep always trying to do so. In order to build a good employment relationship as well as improve the relationship of organizations along with their employees, financial rewards are very crucial factor for enhancing job satisfaction (Sturman and Walsh 2014). Therefore, money and the other financial rewards are the basic and key part of the employment relationship. Apart from that, money can be termed as the extrinsic motivator for the employees in the organizations, thus for the workers also from the higher educational sectors (Hogg and Terry 2014). Moreover, it can also be utilized very effectively in order to motivate employees. However, this particular argument has both the pros as well as cons depending on few certain scenarios.

It is a quite obvious fact that the employees always desire for their financial benefits from the company end because they serve for the organizations in order to earn a good salary for baring all their necessary expenses. They are giving all their effort to accomplish their roles and responsibilities towards their organizations for being the part of enhancing the organizational productivity and revenues (Rosenbloom 2014). Thus, they always want the extra financial support from the organizations where they are working loyally. Moreover, all the financial support provided from the organizations can help the employees for enhancing their career growth in future. The organizations can provide the financial support in mainly two ways towards their committed employees (Ackers 2014). The organizations can provide a good salary package to their employees as well as can also arrange bonus depending on their performance in the workplace. Furthermore, the companies can also provide the scopes to the employees for achieving financial rewards (Dau-Schmidt, Finkin and Covington 2016). The employees can earn these awards by putting their extra effort and by showing their talent in any kind of business operation, which lies within their roles and responsibilities.

In general, the employees expect as well as also receive financial payment from their organizations in the form of their earned salary and commission or incentives. Moreover, this particular payment can be expected by the employees’ end as the outcome of their contribution to the organization or their efforts for accomplishing the organizational objectives as well (Craven 2015). The financial rewards are basically the monetary incentive or bonuses as well in addition to the compensation made in the regular basis that an employee earns by showing a good performance. Therefore, these kinds of financial rewards are greatly associated with the accomplishment of the organizational objectives (Bidwell et al. 2013). A reward often follows while an employee helps a company in the achievement of its goals. In regards to this matter, the most interesting fact is that all the financial rewards are extrinsic. Hence, according to the opinion of Dau-Schmidt, Finkin and Covington (2016), the extrinsic motivation is mainly based in the tangible rewards like paid time off, bonuses as well as pay raises. Organizations or the employers always aim to keep the loyal and the experienced employees for longer in order to get their complete support in future days as well (Hogg and Terry 2014). Thus, in this regard, the employers have to focus more on enhancing the motivational factors of the employees which are always aligned with the monetary aspects. 

Cons of Financial Incentives

The financial rewards are mainly based in the cost versus benefits consideration. Thus, the managers could not provide huge rewards or they would not accomplish the objectives of the organization regarding profit making from each sale (Bélanger and Edwards 2013). Nevertheless, the reward could not also be very small in terms of motivating the sales team that it is not worth the employee efforts. On the other hand, the employees can get dissatisfied as well as do not perform to the proper standards in the absence of the equitable pay, the opportunities as well as recognition associated with training and development (Sturman and Walsh 2014). Therefore, this job dissatisfaction due to the unavailability of non-financial and financial reward usually results in the poor performance and high employee turnover.

Employee empowerment can increase the motivation among the employees as well as their self worth. Therefore, the employees owe their jobs and come forward for taking responsibility of their activities in terms of avoiding any negative influence on the overall performance by their actions (D'Arcy and Greene 2014). Moreover, they are motivated for performing well with the greater commitment if the workers are provided autonomy towards a particular level to do their duties. According to the advantages of the financial rewards and money over the employment relationship, it can be stated that the performance appraisal plays a significant role in this matter (Rubery and Grimshaw 2016). The purpose of performance appraisal in maintaining the employment relationship is for informing the workers that the company is interested in their professional development. Moreover it also signals the message that the contribution of the employees is playing an important role as the organizational success factors (Kalleberg and Marsden 2015). Apart from that, the workers are motivated for contributing more to the organizational success as they are provided the appreciation and recognition for their contribution and effort. Moreover, the organizations can gain huge competitive advantage over the other firms by retaining and motivating the human resource by providing money and financial rewards to their employees (Kennedy 2016). On the other hand, the organizations can also motivate their high performers or the most experienced employees by giving the scope of earning the financial reward systems those can motivate the workers and increase job satisfaction as well. As per the Hertzberg’s motivational theory, mainly two kinds of factors have potential impacts over the motivation of employees (Rumbles and Scott 2016). The motivating factors incorporate the caring attitude, recognition and appreciation from the employer and achievements. Moreover, the hygiene factors incorporate the working environment, policies as well as pay. 

Employee Empowerment and Performance Appraisal

The performance management system can also play a significant role in motivating the employees by compensating as well as rewarding them due to their contribution towards the employer organizations. Therefore, it motivates the workers by giving their training opportunities and development. According to the viewpoint of Wagner and Hollenbeck (2014), the exact morale behind the performance appraisal is for making the employees feel that the success of the organizations is obtained due to their huge contribution. Moreover, it also converses the employees that the company is concerned authentically regarding their development. Thus, as a result of such thing, the motivation as well as commitment from the employee end enhances (Dau-Schmidt, Finkin and Covington 2016). The performance appraisal and promotion with good salary increment involves comparing the job behavior of the employees with job standard and proving feedback on their areas of improvement. Most importantly, salary is the most significant and motivating factor financial reward as it can enable the employees for living their lives with stability and dignity (Kalleberg and Marsden 2015). Thus, it can also be considered as the status symbol and is necessary for creating the belongingness.

Besides the numerous advantages, money or the other financial rewards have few disadvantages or downsides with respect to the employment relationship. As the financial rewards, a bonus or the other incentive can come to be seen as the entitlement rather than a motivator while it is utilized continually (Rubery and Grimshaw 2016). On the other hand, it is also very easy for getting unintended consequences if an employer organization is not clear on the behaviors or it is hoping for incentivizing. For an instance, the creation of an incentive or commission for the sales persons is solely based on the generated revenue without any regard to the profitability (D'Arcy and Greene 2014). Moreover, such kind of program can also sometimes become de-motivating for the employees working in the organizations. The incentive schemes do not work always unfortunately through the way by which they were actually desired. Apart from that, it can become the reason of frustration while the monetary incentives are tied with the group performance if there are perceptions of unequal contributions among the members of a particular group working within an organization (Rubery and Grimshaw 2016). In addition, the financial rewards or monetary incentives can result in the environment where the employees are trying actively for out-doing their colleagues, if the incentives are based on the competition among the employees. Furthermore, especially over time, the monetary incentives can be less effective than the non-monetary incentives (Kalleberg and Marsden 2015). However, the implementation always comes along with the costs. However, it can also take effort as well as time in terms of setting up and tracking the incentive programs and ensure they are accurately paid out.

In order to address the cons or the issues associated with the monetary incentives and financial rewards in the employment relationship, the employers should be concerned about few factors (Rumbles and Scott 2016). The employers should think through the system in terms of ensuring that it is fair and would reward the correct behavior without the creation of an incentive for the related undesired behaviors. On the other hand, the employers should set it up in such a manner so that it would not at all discourage the teamwork made by the employees (Dau-Schmidt, Finkin and Covington 2016). Apart from that, the organizations should monitor the program for ensuring the fact that there is not any kind cheating has taken place. In addition, they should also create a direct connectivity between the eventual reward as well as the actions of the employees (Sturman and Walsh 2014). Moreover, the employees should also have the control over whether they achieve the objectives. Furthermore, the organizations should also utilize the objectives of the enterprises that can be measured objectively as well as readily.

Conclusion

After conducting the entire study, it can be stated that money as well as the other financial rewards are the fundamental and essential factor for maintaining the employment relationship. Moreover, this study has also established the fact with the detailed discussion that money and other financial rewards can be effectively utilized in order to motivate the employees. Most importantly, this study has successfully demonstrated the pros or the advantages of monetary incentives over maintaining the employment relation by motivating the employees to get continuous contribution from their end. On the other hand, along with the advantages of financial rewards and monetary incentives, this study has successfully portrayed all the possible downsides of the monetary incentives. Most important fact associated with this study is that it has successfully shed light on the possible recommendations with the help of which the downsides can easily be addressed. In spite of the disadvantages, this study has successfully established the key fact that financial rewards are very crucial factor for enhancing job satisfaction in order to build a good employment relationship as well as improve the relationship of organizations with their employees.

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