5. Formal Recognition May Be Motivational For The Moment But It Doesnt Have Any Essay Sample

For example if a company uses the employee of the month award for a long period of time it dispirits employees. In time employers have two choices award their long established seasoned, experienced employees or award a less deserving new employee. As stated on pg. 247 “the first few recipients may be deserving, but over time selections become more subjective and controversial” (Luthans,& Stajkovic, 2009). Luthans,& Stajkovic, suggests that “formal recognition awards be contingent upon objectively measured performance(2009, pg. 247). Either way the employee of the month award is likely to create a discouraging effect on employee efficiency. Singling out an employee publically is often more enjoyable for the presenter then for the receiver. Often a failed formal recognition program will become a lunch room joke. At times, employees mock such formal recognition programs. Employees may perceive the formal recognition program as unfair, discriminatory or a form of favoritism.
Balancing formal and informal recognition creates the most effective employee motivation system. The optimum balance is a four to one ratio, for every four social rewards there should be one tangible rewards. Formal recognition should be used as a reintorcer of the values being rewarded with social recognition (Luthans,& Stajkovic, 2009, pg. 247).
The three kinds of positive reinforcement strategies that improve employee productivity are money, feedback and recognition. Surprisingly, 70% of employees report that money is not the best on the job motivator. The combined force of money, feedback and informal recognition showed an improvement in employee performance by 45%.
Though formal recognition offers a tool to motivate employees temporarily, building a relationship with employees with social recognition and tangible reinforcement creates the most productive work environments (Luthans,& Stajkovic, 2009, pp. 244).

References

Luthans,& Stajkovic, (2009). Handbook of Principles of Organizational Behaviour: Indispensable Knowledge for Evidence-Based Management. Wiley, 239-252.