Assess the link between motivational theory and reward "Motivation is the process by which the behaviour of an individual is influenced by others, through their power to offer or withhold satisfaction of the individual's needs and goals". (B !earning Media, #$#% Motivation theories are divided into two different viewpoints. &ee content and process theories of motivation in (Appendi $%. ontent theories emphasis what motivations are, whereas process theories emphasise the real process of motivation. )n the other hand reward is something that workers achieve during their *ob. +t can be financial when the company pays for their performance and it can be nonfinancial which in this case means that the company rewards employees by promotion, achievement and praise. "Maslow puts forward a theory that there are five levels of human needs which employees need to have ha ve fulfilled at work" (Mullins, ##-%. &ee (Appendi %. Maslow mentions in his theory that managers following this theory deflect their attentiveness to offering complementary pleasing relationships, more attractive work, and more opportunities for selffulfillment. )n the other hand, er/berg in his theory suggests that there are two basic needs of individuals such as hygiene h ygiene factors (environmental factors% and motivation factors. &ee (Appendi 0%. Managers following er/berg's theory re*ect money as a motivator and pay attention to supplying more *ob enhancements. According to Mc1regor's theory, theory, managers may follow follow two different different theories which is theory 2 and theory 3. ursuant to theory 2, the average employee dislikes work and will avoid it whether he4she knows what to do or not, that is why employers suggest 5heory 3 which leads them to do ecellent e cellent *ob and managers offer opportunities to have a *ob done. owever, Mclelland Mclelland focuses interest on providing employees with the capability to persuade their needs for success, power, and relationship. ompanies use both positive amplification and negative amplification to motivate employees. Managers may use positive motivation techni6ues to persuade
employees to create good 6uality *ob. &ome managers may use negative motivation techni6ues to encourage employees and stop them from bad manners. owever, companies reward their employees with both touchable products, as well as admire. Mangers may reward their employees by providing weekly or monthly bonus or free lunches, many managers reward their top employees by praising them. 7or eample8 5esco uses two motivation theories Maslow's and er/berg's, see both hierarchies in (Appendi 9%. 5esco uses Maslow's theory because it suggests the company if they achieve one level then it motivates them to achieve the net one. Also 5esco aspire to motivate its staff both by paying interest to sanitation factors and by enabling satisfiers. 7or eample, 5esco motivates its staff by good communication, by giving responsibility and involving employees in decision making. 5esco allows the staffs to be part of the talks on pay rises. 5his shows credit of the work that staff does and rewards them. +n 5esco, they reward staff for their works because it keeps motivating them at work and will carry on applying different motivation theories at work. Monetary reward uses by 5esco in a way of getting employees to welcome the complete value of their benefits package. 5esco also follows pension system and this usually includes pension assistance that the employer creates on the employee's behalf and being process in payroll department. 5hey also reward employees by giving them etra benefits such as car insurance and private medical insurance, by special offers and discounts. &ee 5esco's reward system in (Appendi -%.
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxx Undoubtedly, the most important factor is human in organizations. One of the main management strategies of the organizations is to invest in employees. Organizations are seeking to develop, motivate and increase the performance of their employees in a variety of human resources applications. Therefore, the reward management system has been the most considerable practices of the human resource management system. eward management system is a core function of human resource discipline and is a strategic partner with company managements. !esides, it has an important role on employee performance. "#$% !arber and !retz &'((() mentioned that reward management systems have ma*or impact on organizations capability to catch, retain and motivate high potential employees and as a result getting the high levels of performance. "+% On the other hand, it is crucial
to invest in employee development for enhancing the skills and abilities of employees and organization. urthermore, social exchange theory shows that employees behave in positive ways when the organizations invest to them. "-% Organizational inducements are the factors for the motivation of the employees and pro socially motivated employees make a great eort to bene/t the organization. "##% 0ccording to 1teers and 2orter "+), work motivation is a factor that sustain and manage employee behavior. 5n another study, 2orter and 6iles +-), put some theories about motivation and they gathered into three categories which are *ob &e.g., degree of autonomy), individual &e.g., need for achievement) and work environment characteristics &e.g., rewards). "#% 7ang &'((4) has investigated the individual performance and results of his study showed that we cannot verify individual performance. 8ven so, he also claimed that if employees9 performance is observable than organizations can use direct bonuses or relational contracts to motivate them based on their performance. !ishop "+), on the other hand has studied about employee performance and found that recognition and reward of employee performance leads to dierentiation between the productivity of the employees. '. :iterature eview 0nd ;ypotheses '.#. eward 6anagement 1ystem eward management system contains the organization9s policies, processes and practices for rewarding its employees in accordance with their contribution, abilities and arti/ce. 5t is progressed within the organization9s reward philosophy, strategies and policies, and includes agreements in the form of processes, practices, structures and procedures which will provide appropriate types and levels of pay, bene/ts and other forms of reward. "'% 8mployee performance is originally what an employee does or does not do. 2erformance of employees could include< =uantity of output, =uality of output, timeliness of output, presence at work, cooperativeness '.#.#. eward 6anagement 1ystem 0pplications eward 6anagement 1ystem Tool includes both inancial and >on?inancial ewards which are also called as 8xtrinsic and 5ntrinsic ewards. inancial rewards are salary increase, bonus system, per=uisite etc. On the other hand there are non?/nancial rewards which are@ promotion and title, authority and responsibility, education, appreciation and praise, certi/cate and plague, participation to decisions, vacation time, comfort of working place, social activities, feedback, Aexible working hours, design of work, recognition, social rights etc. "#$% '.'. 8mployee Task 2erformance 0ccording to 7azBcB, &'((4), the eectiveness of an organization9s performance and reward management have an impact on moral and productivity. 6any organizations have found that far from complementing the stated aims of the business, their performance and reward systems were actually driving counter?productive behavior. On the other hand CCpath?goal model99 is absolutely explain the relationship between reward system and employee performance. The concept states that CCif a worker sees high productivity as a path leading to the attainment of one or more of his personal goals, he will tend to be a high producer. Donversely, if he sees low productivity as a path to the achievement of his goals, he will tend to be low
producer. 5n other words, the employee would be motivated to expend a greater amount of eort in his work if he felt his previous eort had resulted in his receiving rewards99. "4% ;ypothesis #< eward management system applications are signi/cantly and positively related to employee performance. '.E. 6otivation 0 basic explanation of motivation is the capability to change behavior. 6otivation is a drive that holds one to act because human behavior is directed toward some goal. "$% Frant &'((4) established a study where motivation enforced the employee outcomes such as persistence, productivity and performance. !esides, motivated employees are found to be more selfdriven and more autonomy?oriented than those who are less motivated &e.g. yan and Geci, '(((@ Thomas, '((', as cited in Frant, '((4), which suggests that they will take more responsibility when oered developmental opportunities. 6otivated employees are also more engaged and involved with their *obs &e.g. Fuay et al., '(((@ Hansteenkiste et al., '((+), they may be more involved in the work of their colleagues, when compared with employees with low motivation. "##% ;ypothesis '< 6otivation is signi/cantly and positively related to employee performance. 1ocial cognitive theory, claims that rewards given for success of challenging performance standards may result in high motivation. "$% ;ypothesisE< eward management system applications are positively related to motivation.
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2resentation Transcript MOTIVATION & REWARD: 6OT5H0T5O> I 8J0G 2rof. 6eera 6adhavan Ghruva Dollege of 6anagement
Motivation defned : 6otivation de/ned 0 motive is a reason for doing something K for moving in a certain direction. 2eople are motivated when they expect that a course of action is likely to lead to the attainment of a goal K a valued reward that satis/es their particular needs. Jell?motivated people are those with clearly de/ned goals who take action that they expect will achieve those goals.
TYPES OF MOTIVATION: T7281 O 6OT5H0T5O> There are two types of motivation as originally described by ;erzberg, 5ntrinsic motivation K this was de/ned by ;erzberg as Cmotivation through the work itself9. 5t takes place when people feel that the work they do is, intrinsically interesting challenging and important and involves the exercise of responsibility &having control over one9s own resources) autonomy or freedom to act scope to use and develop skills and abilities opportunities for advancement and growth
TYPES OF MOTIVATION: T7281 O 6OT5H0T5O> 8xtrinsic motivation K what is done to or for people to motivate them. This includes rewards such as increased pay, recognition, praise or promotion, and punishments such as disciplinary action, withholding pay, or criticism.
TYPES OF REWARDS: T7281 O 8J0G1
The role o o! de"i#n in $otivation: The role of *ob design in motivation 5ntrinsic motivation is provided when *obs are well designed. This is the case when the *ob has the following characteristics< autonomy, discretion, self?control and responsibility@ variety@ use of abilities@ availability of constructive feedback@ belief that the work is signi/cant.
The role o re%ard" and inentive" in $otivation: The role of rewards and incentives in motivation ewards provide recognition to people for their achievements and contribution . 5f rewards are worth having and attainable and people know how they can attain them, they can act as motivators. ewards can be either /nancial or non?/nancial. 5ncentives are designed to encourage people to achieve ob*ectives. They are intended to provide direct motivation< Cdo this and we will make it worth your while9. 5ncentives are generally /nancial but they can promise non?/nancial rewards such as recognition, promotion or a particularly interesting assignment.
T'E (I) PI*T+RE: T;8 !5F 25DTU8 . !ehavior L f&6,0,8 ) where 6 L 6otivation 1election 0 L 0bility 8 L 8nvironment ecruitment Training 2erformance 6anagement Organizational training Dompensation Dulture Org Gevelopment ; 2lanning 0!5:5T7 T50>F:8 8>H5O>68>T0: O!1T0D:8 T50>F:8 6OT5H0T5O> T50>F:8
Motivation theorie" and their ,ratial i$,liation": 6otivation theories and their practical implications Theory Theorist 1ummary of Theory 2ractical 5mplications 5nstrumentality Taylor 2eople will be motivated to work if rewards and penalties are tied directly to their performance. Donceptual basis of incentive and pay?for?performance schemes >eeds 6aslow Unsatis/ed needs create tension and is e=uilibrium. To restore the balance a goal is identi/ed that will satisfy the need, and a behavior pathway is selected that will lead to the achievement of the goal. Only unsatis/ed needs motivate. 5denti/es a number of key needs for consideration in developing total reward policies.
Motivation theorie" and their ,ratial i$,liation": 6otivation theories and their practical implications Theory Theorist 1ummary of Theory 2ractical 5mplications Two?factor ;erzberg The factors giving rise to *ob satisfaction &and motivation) are distinct from the factors that lead to *ob dissatisfaction. 0ny feeling of satisfaction resulting from pay increases
is likely to be short?lived compared with the long?lasting satisfaction from the work itself. 6akes a distinction between intrinsic motivation arising from the work itself and extrinsic motivation provided by the employer, eg pay. 0 useful distinction is made between intrinsic and extrinsic motivation that inAuences total reward decisions. The limited motivational eects of pay increases are worth remembering when considering the part contingent pay can play in motivating people.
Motivation theorie" and their ,ratial i$,liation": 6otivation theories and their practical implications Theory Theorist 1ummary of Theory 2ractical 5mplications 8xpectancy Hroom 6otivation is likely only when< #) a clearly perceived and usable relationship exists between performance and outcome@ and ') the outcome is seen as a means of satisfying needs. 2rovides the foundation for good practice in the design and management of contingent pay. The basis for the concept is the Cline of sight9, which emphasizes the importance of establishing a clear link between the reward and what has to be done to achieve it.
Motivation theorie" and their ,ratial i$,liation": 6otivation theories and their practical implications Theory Theorist 1ummary of Theory 2ractical 5mplications Foal :atham and :ocke 6otivation and performance are higher when individuals are set speci/c goals, when the goals are diMcult but accepted, and when there is feedback on performance 2rovides a theoretical underpinning for performance management processes to ensure that they contribute to motivation through goal setting and feedback. 8=uity 0dams 2eople will be better motivated if they are treated e=uitably and demotivated if they are treated ine=uitably. 8mphasizes the need to develop an e=uitable reward system involving the use of *ob evaluation
T'E -EY MESSA)ES OF MOTIVATION T'EORY: T;8 N87 68110F81 O 6OT5H0T5O> T;8O7 The key practical messages delivered by motivation theory are summarized below. 8xtrinsic and intrinsic rewards 8xtrinsic rewards provided by employers in the form of pay will help to attract and retain employees and, for limited periods, may increase eort and minimize dissatisfaction. 5ntrinsic non?/nancial rewards related to responsibility, achievement and the work itself may have a longer?term and deeper impact on motivation. eward systems should therefore include a mix of extrinsic and intrinsic rewards.
T'E -EY MESSA)ES OF MOTIVATION T'EORY: T;8 N87 68110F81 O 6OT5H0T5O> T;8O7 The signi/cance of needs 2eople will be better motivated if their work satis/es their social and psychological needs as well as their economic needs. >eeds theory underpins the concept of total reward, which recognizes the importance of the non?/nancial rewards as motivators. 2erformance management processes provide a basis for redesigning *obs or roles and for agreeing and implementing development programmes.
The $eanin# o e$,lo.ee en#a#e$ent : The meaning of employee engagement 8mployee engagement takes place when people are committed to their work and their employer and are motivated to achieve high levels of performance. 0n engaged employee is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organizationPs interests. 0ccording to 1carlett 1urveys, 8mployee 8ngagement is a measureable degree of an employeePs positive or negative emotional
attachment to their *ob, colleagues and organization which profoundly inAuences their willingness to learn I perform at work.
E$,lo.ee En#a#e$ent: 8mployee 8ngagement The factors that inAuence engagement 8ngagement will be aected by, work and *ob design the =uality of life provided by the working environment the =uality of leadership The role of reward in enhancing engagement 0 total rewards approach is re=uired to increase engagement. inancial rewards are insuMcient and the ma*or levers are provided by non?/nancial reward, especially those provided by intrinsic motivation, the work environment and line managers.
*OMMITMENT: DO665T68>T Dommitment Dommitment, sometimes referred to as organizational commitment, refers to identi/cation with the goals and values of the organization, a desire to belong to the organization and a willingness to display eort on its behalf.
I$,at o e$,lo.ee en#a#e$ent and or#ani/ational o$$it$ent : 5mpact of employee engagement and organizational commitment
MODE0 OF FA*TORS AFFE*TIN) EN)A)EMENT: 6OG8: O 0DTO1 08DT5>F 8>F0F868>T
Si1 "te," to enhanin# en#a#e$ent thro2#h re%ard : 1ix steps to enhancing engagement through reward #. 0nalyse the existing performance culture of the organization and develop an engagement. '. Ge/ne the drivers of engagement &and disengagement) for dierent categories of employees. E. 0ssess and de/ne the reward elements that aect engagement and develop reward programmes that will enhance these dierent aspects of engagement. -. 5ntroduce a total rewards approach that brings together all the reward elements &pay and non?pay) that engage sta. $. 1egment total reward to take account of key employee dierences. Q. 5mplement the total rewards approach and measure and evaluate its impact and success.
T'E PSY*'O0O)I*A0 *ONTRA*T DEFINED: T;8 217D;O:OF5D0: DO>T0DT G85>8G 0 psychological contract is a system of beliefs that encompasses the actions employees believe are expected of them and what response they expect in return from their employer. 5t has been de/ned by 1tiles, Fratton and Truss as< CThe set of reciprocal expectations between an individual employee and the organization9. C5t is concerned with assumptions, expectations, promises and mutual obligations.9 5t creates attitudes and emotions that form and govern behavior.
T'E PSY*'O0O)I*A0 *ONTRA*T: T;8 217D;O:OF5D0: DO>T0DT The psychological contract may provide some indication of the answers to the two fundamental employment relationship =uestions that individuals pose< CJhat can 5
reasonably expect from the organizationR9 CJhat should 5 reasonably be expected to contribute in returnR9
REWARD MANA)EMENT & PSY*'O0O)I*A0 *ONTRA*T: 8J0G 60>0F868>T I 217D;O:OF5D0: DO>T0DT The part played by reward management in developing a positive psychological contract,
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eward 1ystems 5he use of reward systems within an organi/ation's management practices makes use of the principles found in epectancy theory and reinforcement theory, two of the many motivational theories employed by organi/ations. :pectancy theory eamines how employees perceive the relationship between the efforts they eert and the epected reward for reaching a goal. 5he higher the level of epectation, the more motivated an employee becomes. ;einforcement theory uses incentives, such as promotions or pay raises, as a way to reinforce good *ob performance. ;einforcement theory also uses negative reinforcements to discourage poor *ob performance as well as inappropriate behavior, such as negative attitudes.
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx 1ometimes, simply receiving a paycheck is not enough of an incentive to keep employees dedicated and focused. 6anagers must think of new ways to hold an employeePs attention and interest on a pro*ect, or the company as a whole. 6any companies employ motivational tactics and rewards systems, both of which have advantages and disadvantages. 0ds by Foogle
1tart Gownload Donvert 0ny ile to a 2G. Fet the ree rom Goc to 2df 0ppS www.fromdoctopdf.com Motivation
Dompanies use both positive reinforcement and negative reinforcement to motivate employees. 6any managers believe that using positive motivation techni=ues encourages employees to produce more and better =uality work. or example, some companies select an employee as 8mployee of the Jeek. This techni=ue praises the winning employee, while positively encouraging other employees to keep trying to do well. Other managers believe negative reinforcement motivates employees to stop bad behavior. or example, a company may issue a written?warning system, or threaten employees with termination to get them to perform a certain way. Rewards
Dompanies reward their employees with both tangible goods, as well as praise. or example, a sales department may oer a monthly bonus to the highest earner. >ot all tangible rewards come in the form of money. 1ome companies host free lunches, or give away company gear to good workers. 6any managers choose to reward their best employees by simply praising them for a *ob well done, or by recognizing the hard work they put in to a pro*ect.
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Explain the relationship between motivation and rewards. Explain the relationship between motivation and rewards. Bring out the different reward systems in an organisational setting. Describe the role of financial and non-financial reward system in improving organisational performance with reference to your organisation or an organisation you are familiar with. Briefly describe the organisation you are referring to.
Answer. Motivation in simple words may be understood as the set of forces that cause people to behave in certain ways. It is a process that starts with a physiological deficiency or need that activities behaviour or a drive that is aimed at a goal or an incentive.
The concept of motivation occupies a central place in t he discipline of Organizational Behaviour. It is a concept, which has received the maimum attention from the academicians and researchers ali!e. "ince a motivated employee is highly productive and highly #uality oriented, the managers are also interested the concept of motivation. Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an activity is satisfying or pleasurable in and of itself. $aturally, these activities are things we li !e and want to do. %or most of us, intrinsically en&oyable activities are things li!e eating, resting, laughing, playing games, winning, creating, seeing and hearing beautiful things and people, being held lovingly, having se, and so on. To do these things we don't need to be p aid, applauded, cheered, than!ed, respected, or anything((commonly we do them for the good feelings we automatically and naturally get from the activity. Intrinsic rewards also involve pleasurable internal feelings or thoughts, li !e feeling proud or having a sense of mastery following studying hard and succeeding in a class. Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them consistently, so etrinsic motivation needs to be applied in the form of rewards )positive reinforcements*, incentives, or as a way to avoid some unpleasant condition )+negative reinforcement+ or punishment*. amples- ou wor! doing an ordinary &ob for pay. ou study for good grades or to avoid failing or to prepare for a good future. ou do housewor! to get a clean, organized house and/or a spouse's appreciation or to avoid her/his disapproval. A teenager comes home from a date on time in order to avoid being grounded. These are all activities that are commonly sustained by eternal pay offs, not because you love wor!ing, stud ying, cleaning, and coming home early. Are rewards, particularly money rewards, really motivators0 The answer to this #uestion is " and $O.
Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of a tas!. The employee ta!es pay as the reward for his or her wor!, and the employer views it as the price for using the services of the employee. "econd, as a medium of echange. Third, money is one of the hygiene factors, and improving maintenance factors is the first step in efforts directed towards motivation. %ourth, money also performs the function of a score card by which employees assess the value that the organization places on their services and by which employees can compare their values to others. %ifth , reinforcement and epectancy theories attest t o the value of money as a motivator. "ith, money acts as a punctuation in one1s life. It is an attention getting and effect producing mechanism. Money, has therefore tremendous importance in influencing employee behaviour. "eventh, money is easily vulnerable to manipulation. %inally, money will be a powerful motivator for a person who is tense and anious about lac! o money. But behavioural scientists thin! otherwise. They downgrade monetary rewards as a motivator. They prefer, instead, other techni#ues such as challenging &obs, goals, participation in decision(ma!ing and other non( monetary rewards for motivating employees.
Types of 2eward "ystems The financial rewards are basically of three types3 profit sharing4 3 &ob evaluation4 and 3 merit rating. 5rofit "haring 5rofit sharing could be on a macro basis or on a micro basis. The former relates to t he entire company as a whole and the latter to a particular section or group dealing with a particular activity and/or product. On a macro level, it would be difficult to identify and reward outstanding performance. This is possible on a micro level by treating the particular activity as a cost and profit center by itself. This is easier said than done, since overheads and other common services have to be charged and this cannot be done completely ob&ectively. The cost allocation in such cases is somewhat arbitrary and t he profit will therefore not be a true reflection of the performance of that particular group or activity. 6ob valuation In case of &ob evaluation, the various component factors have to be isolated and evaluated for purposes of inter(&ob comparison. ach factor is assigned a rating on t he basis of a scale agreed beforehand by the union and the management &oint committee. The total rating for each &ob then forms the basis of wage structure. 7owever, there must be a base level, representing, in effect, the 'minimum wage', depending on the nature of wor! and the geographical area. In some cases and in some countries these are stipulated by law. A typical, though somewhat broad, list of &ob factors is as follows3 3 3 3 3
wor!ing environment4 physical characteristics4 mental characteristics4 etent of responsibility4 training and eperience.
In case of managers, the factors are3 responsibility4 3 epertise4 3 human relations. Merit 2ating Merit rating has been used as an indicator of performance. ach employee is rated, t ypically as ecellent, good, average or poor, in respect of the following abilities3 communication4 3 human relations, including leadership and motivation4 3 intelligence4 3 &udgment4 3 !nowledge. The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias of the rater who may be too lenient, may not be ob&ective and may also have favorites or otherwise in the group being rated. I am familiar with $esco 8td. $e sco is a leading producer of gas in Italy. At $esco the following are used to improve organizational performance. %inancial 2ewards These rewards in organizations help employees to b e more committed and motivated to t heir &ob and wor!ing environment3 "ystem rewards are automatically given to all employees for merely being members of their organisation. "ystem rewards can be defined as being the basic wage rates. 3 Individual rewards are given to employees based on the #uality and #uantity of their performance. 5erformance related pay )525* is seen as an individual reward policy, where pay is rewarded in relation to the volume of output. 525 can cause divisions amongst wor!ers, where employees become more worried about the fact that their colleagues are being paid more than them. 3 9rowth rewards are received by employees for &ob innovation, learning and improvement. The !ey to managing performance through rewards is lin!ing the desired performance with the appropriate reward. $on(financial 2ewards In an ever more competitive en vironment, the aim of organizations must now be to focus on increasing the added value of their employees. This is achieved, by encouraging employees to increase their effort and performance higher than the average standards. This has been carried out using employee appraisals and motivational methods. mployers have become increasingly aware of the rich potential for good constructive ideas that eist from the employees on the &ob eperiences. One method for using this !nowledge is through suggestion schemes, these are becoming highly recognized, as they allow for improvements in all areas of wor!. These schemes are very fleible and can be readily adapted to meet all !inds of wor!ing conditions. "uggestion schemes can be seen as a means of increasing profit and wor!er participation.
"uggestion schemes aim to improve employee attitudes by directing their attention to the positive and progressive aspects of their &obs. This helps to boost employee morale and increase &ob satisfaction. It can be identified that if an employee is unhappy in his/her &ob it reflects on a negative attitude on his/her performance and also with other people. perience in many companies has shown low employee morale reflects on low productivity and increasing costly errors. "uggestion schemes play a useful role in increasing and maintaining morale. Another method which is not related to pay is the performance appraisal system. This meth od is used as a means of raising individual performance and identifying development needs. Appraisal systems today are becoming part of the manage ment culture, where managers feel it necessary to appraise and be appraised. "elf 2ating, this is a form of appraisal where the employee ta!es a loo! at themselves, avoiding any negative feedbac! from traditional appraisals. "elf rating is an effective way of trying to get the employee to loo! at what their roles are in relation to business needs. It is fair to state that employees are not motivated by money alone. 5aying different wage rates to employees doing the same &obs can cause more problems than benefits. There are other incentives to reward employees, other than financial such as appraisals. Appraisals can prove to be an effective means for loo!ing at human resources, as they allow us to3 nsure that the abilities and energies of individuals are being used effectively. 3 Allow employers to identify better uses of individuals talents and eperience. 3 Training needs can also be identified. 3 %uture decision ma!ing as data of abilities can be !ept on file for future reference. Other eamples of incentives/motivators include3 Team briefings ( Management tell sub(ordinates what needs t o be achieved, this opens u p the lines of communication, and ma!es everyone aware of what needs to be done. 3 Team buildings ( mployees are ta!en on outings to pursue some systematic group eercises led by a trainer or time spent on social activities. The logic is to enthuse a team wor!ing ethic. 3 :uality circles ( 2egular meeting sessions where a group of employees discuss #uality related issues. It can be said that if managers are to be successful, they must focus on strategies that improve the overall performance of the business by using employees as a vital resource which needs to be nurtured and not &ust developing and implementing control systems to fi short term problems.