The insights drawn from the discussion of motivational theory highlight the importance of assessing needs, compensation, and rewards when creating an organizational structure that will increase an employee’s job satisfaction and motivation and direct organizational behavior; some of these actions include implementing an adequate compensation program, increasing job security, allowing for flexible work schedules, and establishing employee involvement programs.
Adequate Compensation Program
Before determining how compensation should be set, it is necessary to align the compensation program with several elements of the business.
. Business goals. A compensation plan should be developed in light of a firm’s business goals. Employees should be compensated to the degree that their efforts help the business accomplish its goals.
. Employee goals. A compensation plan should be clear in stating individual employee goals. In order to effectively motivate employees, they need to know what goals they will be expected to achieve.
. Achievable goals. The goals that individual employees are expected to accomplish must be realistic and achievable. If employees feel that the goals associated with their positions are
unreachable, they will not be motivated to work. If a supervisor can set reasonable goals and make the employee aware that numerous achievable bonuses will be given if these goals are met, the employee will be motivated.
. Employee input. Employees will be more satisfied with their jobs if they are consulted about the compensation plan before it is put into effect.
An adequate compensation program, taking these issues into account, will affect employee motivation; a compensation plan should give the highest relative raises to the individuals who achieve the highest levels of performance. This type of system is referred to as a merit-based pay system and bases pay on performance. It can be effectively implemented in conjunction with an incentive plan that rewards employees for achieving specific performance goals. These plans stand in contrast to a system that provides across-the-board pay raises, which will not motivate workers to put extra effort into achieving set goals.
Job Security
Employees who feel they are in danger of losing their jobs may not
show high work productivity. Worker satisfaction can, and productivity may, be increased by providing job security. One way firms can increase job security is by providing cross-training in other functions. This will give employees the versatility to accomplish new tasks if their
current positions change or are no longer available.
Adequate Compensation Program
Before determining how compensation should be set, it is necessary to align the compensation program with several elements of the business.
. Business goals. A compensation plan should be developed in light of a firm’s business goals. Employees should be compensated to the degree that their efforts help the business accomplish its goals.
. Employee goals. A compensation plan should be clear in stating individual employee goals. In order to effectively motivate employees, they need to know what goals they will be expected to achieve.
. Achievable goals. The goals that individual employees are expected to accomplish must be realistic and achievable. If employees feel that the goals associated with their positions are
unreachable, they will not be motivated to work. If a supervisor can set reasonable goals and make the employee aware that numerous achievable bonuses will be given if these goals are met, the employee will be motivated.
. Employee input. Employees will be more satisfied with their jobs if they are consulted about the compensation plan before it is put into effect.
An adequate compensation program, taking these issues into account, will affect employee motivation; a compensation plan should give the highest relative raises to the individuals who achieve the highest levels of performance. This type of system is referred to as a merit-based pay system and bases pay on performance. It can be effectively implemented in conjunction with an incentive plan that rewards employees for achieving specific performance goals. These plans stand in contrast to a system that provides across-the-board pay raises, which will not motivate workers to put extra effort into achieving set goals.
Job Security
Employees who feel they are in danger of losing their jobs may not
show high work productivity. Worker satisfaction can, and productivity may, be increased by providing job security. One way firms can increase job security is by providing cross-training in other functions. This will give employees the versatility to accomplish new tasks if their
current positions change or are no longer available.
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