Human Resource Management
Literature Review
Previous research has established that the public sector does not operate in a businesslike manner. This has resulted in subpar performance from its employees, who do not receive the same treatment as those working in a corporate context. With the implementation of management services in the American government's public sector, it is critical to consider employee motivation via financial incentives (Coccia & Igor, 2018). The government intends to consider pay for performance and compensation in particular. Historically, monetary prizes and incentives were viewed as bribes and unethical. Nevertheless, other scholars have provided explanations for the effect of financial incentives on employee performance. Financial incentives serve as a foundation for the organization's sustained interaction with its employees.
The authors, Coccia and Igor lay a theoretical framework in an attempt to order the clarification of cadres in rewarding employees. Therefore, their research work lays a solid foundation for developing sophisticated taxonomies and related theories to enhance better management implications. Further, the two authors point out that the sector of public administration has been faced with difficulties concerning reward taxonomy (Coccia & Igor, 2018). Notably, the research out to a gap in the public sector, especially on the criterion of employee reward as well as the taxonomies involved.
In addition, the study of public sector rewards categorizes rewards as measurable and immeasurable rewards. The measurable reward can therefore be defined as elements that are tangible usually measured in monetary form and designed metric systems. According to Coccia and Igor, monetary rewards prove effective only if they are accompanied by better systems of performance appraisal (Coccia & Igor, 2018). However, in the public sector and organizations systems of performance appraisal have proved inadequate and inefficient. Thus, the impact of the financial incentives highly relies on superior performance appraisal systems.
On the other hand, the immeasurable rewards include elements that are intangible for instance professionalism, responsibility, and many more. Additionally, there are the intrinsic as well as the extrinsic rewards. The intrinsic rewards are immeasurable and may involve work satisfaction to employees, recognition, and empowerment (Coccia & Igor, 2018). Ostensibly, the intrinsic reward in most instances enhances the positive involvement of the employees with work. On the other hand, extrinsic rewards consist of tangible elements such as money gifted to employees because of specific accomplishments. Both the intrinsic reward and the extrinsic reward are vital in the motivation of employees. Studies indicate that with gradual development many organizations are in the process of shifting to extrinsic reward, as it is effective and initiative-taking. Additionally, research shows that extrinsic benefits to employees are in most instances incorporated by institutions that are mission oriented (Coccia & Igor, 2018).
From previous research, it has been known that the system of financial incentives to employees is determined by two aspects namely, tangibility and the aspect of formality. The aspect of formality is concerned with the legitimacy of the financial incentives as well as the transparency involved. The second aspect of tangibility determines the physical characteristics of the reward. Significantly, human behavior to a greater extent can be determined by the provision of financial incentives. Employees are more likely to do their best when the workplace puts in place systems of financial incentives as a form of reward. Notably, payments made regarding performance increase individual efforts and overall performance (Coccia & Igor, 2018). Additionally, according to the research conducted by authors Coccia and Igor, Intrinsic reward, which is reward of no monetary form is mainly practiced in the public sector and can only aid in the satisfaction of personal needs in a direct manner for the employees to attain given accomplishments. On the other hand, employees in private sectors are in most cases rewarded with extrinsic rewards, which is tangible elements for instance pay rises and wages.
Consequently, the underlying motive in employee reward whether intrinsic or extrinsic is the aspect of motivation. Notably, the motivation of employees plays a crucial role in elevating employee performance spirits thereby resulting in increased production. Looking into past research, several theories are attributed to employee motivation, for instance, the theory of content. The content theory looks into the needs of the employees as well as their strengths (Coccia & Igor, 2018). On the same note, the theory looks into the. involved processes pursued by the employees to attain the set goals and standards. The content theory, therefore, incorporate famous theories such as Maslow's model, Clelland's achievement model as well as Herzberg's theory.
Further, the research paper clarifies process theory. The theory puts more emphasis on motivation processes such as good and healthy relationships, initiation of behavior, the direction of behavior, and the sustaining of the initiated behavior (Coccia & Igor, 2018). Some of the models under this theory include the model of expectancy, goal theory, theory of attribution, and equity theory. From the conclusion of the research done by Coccia and Igor, the public sector and the civil servants are more aligned to intrinsic reward as opposed to extrinsic reward. On the contrary, the private sector highly values extrinsic reward.
The majority of enterprises worldwide have adopted performance-based compensation. This involves monetary compensation based on an employee's performance. Employees are monetarily rewarded for their accomplishments. Financial incentives are the most fundamental way for employees to feel motivated, as they increase their morale (Coccia & Igor, 2018). Employees feel understood and respected in the workplace when they receive such financial presents and incentives. As a result, employees are more inclined to stay in their current employment, resulting in lower employee turnover.
According to research work done by Lynn DeVito and fellow authors, it is the responsibility of the managers and the leaders of organizations to provide a work environment that motivates the employees. Additionally, the research hints that motivation for employees is a survival necessity in order for organizations to remain competitive in terms of the workforce (De Vito et al., 2018). Similarly, it is important for managers to conduct audits on the related culture of their organization and get to know how the employees feel in regard to certain cultures and practices incorporated in the companies. Nonetheless, motivation gives room for the needs of the employees to be recognized both from an internal perspective as well as the external perspective.
In regard to DeVito's research integrating motivation, theories would result in an improved motivation theory as well as value and time maximization (De Vito et al., 2018). Notably, the motivation theory may vary from one aspect to another, but the underlying motive remains the same. Taking Maslow's theory, the needs of the employees are to be looked into first before focusing on more advanced needs. The needs incorporated in Maslow’s theory are the need for a decent salary, employees’ safety that involves insurance as well a work environment that is safe. Lastly, there is the need to belong. It is the role of the managers and the general manager to ensure work practices and cultures that are inclusive to enhance the sense of belonging in employees (De Vito et al., 2018). When the employees have a sense of belonging, this provides a comfortable work environment, and the employees will strive to do their best in relation to performance. Maslow established a hierarchical classification of human needs in 1943. Security, self-actualization, self-esteem, physiological needs, and belongings are the five areas of human wants. According to the professor, a person must first be biologically driven (De Vito et al., 2018). This is to ensure that the mental health and value of the employee are determined. When employees' physiological needs are met, they become content and work toward achieving their own demands (De Vito et al., 2018). The following step is to address security concerns. This practice is repeated until all needs are met. Maslow asserts that unmotivated employees are less likely to be productive. By addressing their requirements, employees remain motivated and perform better.
According to Herzberg, some employment result in employee satisfaction, whereas others result in employee dissatisfaction (De Vito et al., 2018). According to the scholar, employee motivation results in a sense of accomplishment, responsibility, and promotion opportunities. Herzberg states that some factors in the workplace result in job satisfaction and motivate employees. The theory is considered practical in the workplace. According to the scholar, employees find gratification of higher levels such as recognition, advancement, achievement, and responsibility. He also states that the presence of one set of characteristics in the workplace leads to satisfaction at work. Herzberg disregards the fact that a higher level of satisfaction leads to a low level of dissatisfaction. He however states that both are independent phenomena that are not a continuum. According to the scholar, for employers to attain workplace productivity through enhancing motivation, they should focus on both ends of the equation. As they work on satisfaction, they should also focus on dissatisfaction.
Herzberg’s two-factor theory distinguishes between motivators and hygiene factors. Some of the motivators captioned in this theory include recognition of one’s achievements, opportunities from work, responsibility, and involvement in decision making (Novianty & Evita, 2018). Hygiene factors as recorded by Herzberg include salaries, fringe benefits, good pay, pay raises, and job security. According to the scholar, lack of hygiene factors leads to dissatisfaction of employees hence a lower performance. However, their presence in the workplace does not guarantee satisfaction. Eliminating dissatisfaction in the workplace is halfway to creating a conducive environment (Novianty & Evita, 2018). The other task is to increase satisfaction through motivation.
Articulately, in view of authors De Vito and her peers, managers should recognize the various needs that call for improvement in workplaces. Additionally, factors associated with discouragements and low morale to a greater extent contribute to instability and put employees in s state of jeopardy. De Vito alongside her peers affirms that such events result in employees having emotional distress and demeaning their efforts and, in most instances, prefer to look for other jobs elsewhere (De Vito et al., 2018). However much it may prove easy to get other employees and replace the vacancies, this poses as a barrier to continuity thereby. contributing to instability and discouragements.
The research further details that employee who are unmotivated put little to no effort into their performance avoid the workplace in most instances and are usually willing to leave their working places if granted the opportunity (De Vito et al., 2018). On the other hand, motivated employees put more effort and are creative, and give quality work. The authors equally note that the motivation of employees has been a problem for many managers. Worth noting, from the research work, the authors found out that monetary elements form part of consistent motivation factors for employees. This is because monetary value remains the only process and way to attaining financial stability.
The research work recommends hiring employees on the basis of their motivation factor in regard to the hiring company. In this manner, the employees would be able to identify their fit, whether the intrinsic reward or extrinsic reward. This will help in sieving the employees in accordance with their motivation preferences (De Vito et al., 2018). Further, the researchers recommend that the belonging needs of all the employees need to be addressed in regard to Maslow's theory. Under this, the employees are to be provided with a suitable work environment as well as enough motivation for quality work.
Consequently, in reference to the research work of Landry and his fellow researchers, they concluded that when employers embrace the aspect of motivation such as bonuses, for employees alongside other financial incentives, it contributes to competency in employees (Landry et al., 2017). When the employees are motivated performance is likely to improve. The research suggests that financial incentives have positive impacts on employees and the general growth and development of workplaces. Often the plans to issue financial incentives are inadequate including the performance measurements, this, therefore, makes it difficult for proper incentive measures. With the appropriate plans, financial incentives would prove more effective.
Much research has not been done here. You seem to have been using the same authors. Wider reading can be done to support your discussions.
Bibliography
Coccia, M., & Igor, B. (2018). Rewards in public administration: a proposed classification. Journal of Social and Administrative Sciences, 5(2), 68-80.
De Vito, L., Brown, A., Bannister, B., Cianci, M., & Mujtaba, B. G. (2018). Employee motivation based on the hierarchy of needs, expectancy and the two-factor theories applied with higher education employees. IJAMEE.
Landry, A. T., Gagné, M., Forest, J., Guerrero, S., Séguin, M., & Papachristopoulos, K. (2017). The relation between financial incentives, motivation, and performance. Journal of personnel Psychology.
Novianty, R. R., & Evita, S. N. (2018). Financial incentives: the impact on employee motivation. Academy of Strategic Management Journal, 17(6), 1-8.
Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and organizational performance: An empirical study of container shipping companies in Taiwan. Maritime Business Review.
Vlaev, I., King, D., Darzi, A., & Dolan, P. (2019). Changing health behaviors using financial incentives: a review from behavioral economics. BMC public health, 19(1), 1-9.