Developing Individuals and Teams: The Role of Incentives and Rewards

Assessment Criteria:

Preparation of an Article for the CIPD website

Assessment Criteria:

1. Correctness of answer to the relevant question
2. Full coverage of the indicative content
3. Correct usage and application of command words
4. Sufficient and adequate justification of the arguments, depth of the answer, examples (recommended)
5. Proper use of the language (academic style)
6. No inclusion of content not related specifically with the subject
7. Correct application of APA style citations

You are completing a placement year, as part of your undergraduate degree in Human Resource Management and have secured a placement at the Chartered Institute of Personnel and Development (CIPD). You work in the Research section, which provides information on all aspects of HR. During your placement you will also have to undertake several assignments for your academic institution.

Following a successful meeting and on completion of your introductory period your line manager has been very impressed with your work so far. He has asked you to submit a draft article for the CIPD website. The purpose of this article is to help CIPD members understand how to develop individuals and teams. 

1. An assessment of the effect of incentives and rewards on the development of individuals and teams

Assess the effect of incentives and rewards on the development of individuals and team.

One of the different corporate techniques used to improve employee and organizational efficiency is the presence of incentives and their efficient management. Most of the published research on this subject, however, has seen a lot of disagreement on whether or not incentive programs could improve employee efficiency by using different styles (extrinsic, intrinsic and social rewards). Several studies have demonstrated a favorable association between management of incentives and optimal success levels, while other studies see the utilization of such forms of rewards as predetermining the anticipated improvement in performance of workers and thus not achieving corporate objectives and goals.  Disagreement between professionals, academics, and analysts and the existence of serious discrepancies that precisely describe the logical connection between independent variables and results have created a need for further data on the relationship between incentives and performance and across various fields and in different contexts.

Incentives and rewards cause developing potential on individuals. Every organization needs talent and experience in order to be successful. Incentives and rewards can make a company have individuals with more talent and experience. Providing incentives and rewards to employees is a sign that they are valued and that their work is very important for the success of the organization. This will make employees work harder, focus more on providing the best talent to the organization and be motivated. A motivated employee is more likely to develop more potential. Individuals with high potential are much more valuable to an organization than individuals that don’t have high potential. They are much more productive in a company and work harder.

Employees who believe their contributions are appreciated are much more committed to their business, even in minor ways. Organizations of outstanding job reward programs will not only hang on to their workers for longer, but also have business brand ambassadors in the end, while their happy employees tell the public how wonderful their boss is. Retention also comes with commitment. Staff turnover is around 15 percent annually on average, but depending on the industry, this varies. Despite the fact that some turnover is potentially beneficial for corporate success, companies obviously don't want to lose their best and brightest. In order to get more employee satisfaction, it is important to get benefits and compensation programs right.

They are even more driven when workers realize that their success is valued and appreciated, so it makes sense to use job rewards to achieve this. And it is clear that a driven workforce is also interested in the job they do and is more dedicated to their corporation's ideals, culture and goals.

A workforce that is committed, inspired, active, and above all satisfied is much more efficient. With higher efficiency and amount of job production, the systematic implementation of workplace benefits more than pays off.

Some people may assume that employee compensation schemes are not that relevant, an additional one that can be scrapped, but that would be a mistake. A crucial aspect of building, growing and maintaining a world-class team is incentivizing and motivating workers.