Before discussing on the subject, let us understand the human psychology. Every human is made of physical body and psychic body, and that’s why psychiatric called human as psychosomatic. Our physical body has certain basic requirements like food shelter clothing etc. But psychic body needs prestige and power. Because every human is a result of ego. (May be the percentage vary case to case bases). Thus every human being is after prestige and power or say where ever they find power or prestige he/she will be attracted. For example: If we find power in money or higher post or president ship we shall be after it and under the condition our ego expands and we like it the most. Similarly our search is for better prestige too. If we find better prestige in religion or getting higher degrees or in money, we shall try to achieve it or say we shall be motivated. These rewards are the best tool to motivate people. While I was in college learning marketing, my professor, use to say there are two factors, which motivates human one is greed and another is fear. And you will see that every business house is using these tools. You can say that exploiting greed is a positive way to motivate people and exploiting fear is the negative tool. But to my experience it works excellent.
One way rewards are nothing but exploiting greed of human.
Now you are asking what kind of rewards will work best.
See, every type of rewards will have positive impact, may be little here and there. Such reward can be in cash or kind or appreciation letter or certificate or promotion or anything which satisfy the need of physical body and psychic body. I have worked with many companies as a marketing consultant and achieved best results out of rewards offering schemes to my sells and marketing team. Some of my clients have achieved more then ten times sales targets in two to three years of time. Only thing one needs to see the financial position of the company while deciding reward schemes
From India , Ahmadabad
rahulbestyes rewarding employee increase their efficiency its so bcoz employee is motivated to enchance the level of performance to decease level of satisfaction of their need in monetary terms ,grade ,societal stand up etc.rewarding is performance appraisal so a dedicated person rewarded will motivated him/her to continouly enchance his performance.
its simple logic "a small boy is rewarded by giving chocolate to accomplish his homework"
its nt the work but the reward that made him to complete his work
From India , New Delhi
vsramarao6Yes, Incentives payable monthly and Rewards after annual performance appraisal can be a simple motivator to marketing staff who can go happily to a customer even on holidays because this is increasing their monthly compensation directly. I know a multinational marketing stem cells has an increasing incentive slab system. For example starting with 4 clients @Rs.500 per client it increases to Es 1200 when the employee completes 15. This rate is then applicable to all 15. This is motivating their marketing professionals even to visit on a holiday. The MNC is also granting them compensatory off whenever they want.
Rewards and incentives contribute to strategy implementation by shaping individual and group behavior. Well designed incentive plans are consistent with an organization’s objectives and structures. They motivate employees to direct their performance toward the organization’s goals.
From India , Mumbai
Neeti KamdarYeah thats pretty true. Would you be in a position to share the information of this company? Also are you aware of any other companies which have a good incentive structure. Your information will be very helpful.
From India , Mumbai
Yes. Before Rewarding an employee must be given a feed back about his more than expected contributions and as well as even if some negatives are there. He must be told to improve on the negatives. He must then be congratulated by his immediate superior and presented the Reward letter. If the employee is having any questions then the superior must answer them in a pleasant and convincing manner.
This type of Rewarding by money as well as appreciation will be a great motivator to enhance his or her performance continuously.
From India , Mumbai