1. Motivational Theories: (Expectancy Theory v/s Equity theory of motivation)
Expectancy Theory: The theory suggested by Victor H Vroom puts it forth that if a person needs to be motivated, then he should actually believe in the worth of the outcome of the task that he is to perform. Only then he can motivate himself towards putting in his earnest of efforts to achieve the task.
Equity theory of motivation: This theory emphasizes on the employee’s need of being treated in a just manner in the organization. The social comparison process forms the basis of the Equity theory of motivation.
While the Equity theory relies on the need of just and fair treatment, Expectancy theory specifies the importance of the assessment of the value of the goal that can be achieved by performing the certain tasks.
2. Team Based incentive plan: Team based incentive plans are designed in order to reward teams for the achievement of any particular goal through team efforts. Numerous types of team based incentive plans are adopted by various companies that match their performance evaluation criteria.
The main consideration that forms the basis of any team based incentive plan is to promote appropriate cooperation and coordination among the team members. Also, the development of a united group effort directed towards the achievement of organizational objectives is also facilitated by team based incentive plans.
3. A free rider is that employee who due to his limited capabilities is not able to contribute proportionately towards the achievement of group objectives yet walks away with equal credit as the major contributors. Adopting ways like granting private property rights, profit sharing can keep a constant check on the free rider effect while motivating the less performing employees to contribute more towards the achievement of organizational goals.
4. Behaviorally Anchored Rating Scales are the new form of appraisal systems in contrast to the trait based appraisal systems. It is a rating scale which quantifies the performance of the employee while giving necessary descriptions in the employee performances. The advantage of using BARS is that it emphasizes on specific and measurable parameters in the job evaluation process. The disadvantage of this method is that it is very difficult to plan and develop this method of evaluation system.
5. M. A. E.: The performance of any employee is based on the three most important factors called, Motivation, Ability and Environment. Failure on the part of the manager to ensure the presence of any of the above said factors can fail to provide suitable environment for the efficient performance of an employee.
There are three triangles called the Ability triangle, motivation triangle and Environmental obstacle triangle that are interlinked due to the various factors. The ability triangle is affected by recruitment, training and selection processes. The motivation triangle is affected by the compensation, culture and performance management. The Environmental obstacle triangle is affected by organizational development, organizational design and human resource planning and development. It is important for an employee to be motivated sufficiently to enhance his abilities and make the appropriate use of the environment in the organization. Therefore the M, A, E is very significant to ensure top performance from the employees.
6. Incentive plans in any organization in one way or the other are focused towards maximizing the employee efforts towards the achievement of organizational goals. Achievement of the organizational goals requires the employees to be efficient in their work, compliant with the company policies and procedures and adopt a just behavior within the organization.
Incentive plans should be such that they reduce the free rider effect while motivating the top performers, which determines the efficiency factor in the employees. Incentive plans should be appropriate enough to motivate the employees towards sticking to the company’s needs which guarantees the compliant factor in the employees. The incentive plans should be open enough which give the employee a clear idea as to why or why not he/she was rewarded or not rewarded. This assures among the employees, the feeling of being treated in a just and fair manner in the organization. Thus a properly devised incentive plan is latent of determining the efficiency, equity and compliance factors among the employees of the organization.
1. Griffin, W. R. & Moorhead, G. (10th Ed.). (2010). Organizational Behavior: Managing People and Organizations. Canada: Cengage Learning.
