Free Essay

Employee Incentives

In: Business and Management

Submitted By shawn
Words 459
Pages 2
Organizations and companies need employees to manufacture products or work with customers. Successful organizations discuss performance issues and work on strategies to help employees and management meet organizational goals. Employee incentive programs have been a successful way of helping achieve these goals. This paper will discuss performance management and show how apac incentive plans relate to their specific organizational objectives. It will also show if incentive plans help apac achieve its goals and objectives.

Performance Management is defined as the process through which managers ensure that employees activities and outputs contribute to the organization’s goals. This process requires knowing what type of activities and outputs are needed in each individual organization, observing whether they occur and providing feedback to help employees meet expectations of the company. While giving feedback, management and employees may find performance issues and think of new ways to resolve issues. Performance Management can be approached in different ways. Performance appraisal is one way companies rate employees and was the way most organizations have previously evaluated employee performance. The evaluation of employee performance by using a scale has many negative results. Performance appraisal measures specific areas of employee performance usually annually or sem-annually. Evaluations usually rate employee performance on a scale and if the evaluation is good, raises are given to the employee. Evaluations and appraisals are uncomfortable for the employees and managers if the employee being evaluated needs too much improvement. Employees often take offense to negative feedback on his or her performance. Managers sometimes have a hard time making decisions on an employee performance. Some managers abuse the evaluation system and make the evaluation on a personal perspective. Employees sometimes see the appraisal as being a way to single out an individual employee. Employees generally feel as though they haven’t had a fair evaluation.
Many problems arise with this traditional way of evaluating employee performance, so many organizations are changing the way employees are evaluated. Companies are now focusing on specific relevant aspects of employee performance, appraising and providing feedback with problem solving and rewards. This new way of evaluating employee performance helps managers and employees focus on organizational goals. The purpose of performance management systems is to help organizations meet business, administrative, and developmental goals. One way of helping meet organizational goals is employee incentive programs. Employee incentive programs are highly effective way to boost employee morale. Employees need to see that the company cares and appreciates the employee hard work and dedication. Employees are more productive when they get extra benefits for exceptional jo b performance. There are many types of employee incentives. Some examples include bonuses, company picnics, trips to special places for the employee and their families, reward points for prizes and promotions within the company.…...

Similar Documents

Premium Essay

Incentives Plan

... Incentive Plans Travis Green MGT 431 Human Resources Management May 26, 2012 Incentive Plans Providing job satisfaction and incentives for employees should be a priority for employers because incentive pay is often related to job satisfaction. Job satisfaction helps retain valuable employees and contributes to a companies continued success. According to Noe, et al, 2007, “An effective performance plan should be linked to an organizations goal and employees should believe they can meet performance standards.” (Noe, Hollenbeck, Gerhart, & Wright, 2007). This paper will examine incentive plans at EMCOR Mechanical Services and how these plans do or do not help the organization achieve its goals and objectives. At EMCOR Mechanical Services, the organizational objectives are to “go above and beyond promoting a profitable and sustainable business that meets the customers’ expectations, while maximizing opportunities.” The organization also places focus on career satisfaction, integrating employee’s values, integrity, teamwork, effective communication, and empowerment to make the job fun. As a nationwide organization, that continues to grow in a down economy, many employees are committed to the organization. These employees care about the quality of work they produce and are more productive because the company seems to care about them. Salary, flexibility, growth, interpersonal relationships, and a since of value should be taken into consideration when...

Words: 832 - Pages: 4

Premium Essay

From, Cost of Living Allowances (Cola) to Employee Incentives .. .

...(COLA) to Employee Incentives . . . What Have You Done For Me Lately? L`Jada Storm Parker MHR 6751 Labor Relations and Collective Bargaining Abstract The cost of living allowances (COLA), was a portion of benefits, that was at one time, a reactions, to the action of inflation that all U.S. employees felt the impact of, however looked forward to seeing on their pay check stubs, and as part of a benefit to subsidize for the lack of pay raises, as the economy yearly increased on its services and goods to the public. The term cost of living allowances was a yearly incentive to all who were employed, being that prices of all services and goods increased year after year, however the employee paycheck failed to keep up with the rising cost of increased to live. Employers began to become a bit more creative in assisting employees with various offset incentives that were pleasing to employees as the COLA began to phase out. More attractive to the employee was the opportunity to be compensated more often than once a year with an ineffective form of benefit as COLA. In all actually, the COLA was a contradiction to its name and purpose. Cost of living payouts were not equally proportioned with the Cost of living increase. As a result employees began to question the employers with “What have you done for me lately?” As I began to ponder the actions and reactions to the payments of the cost of living allowances (COLA), when compared to employee incentives, the......

Words: 1899 - Pages: 8

Free Essay

Intro of Incentives

...Incentives of employees INTRODUCTION OF THE PROBLEM As s student of hotel and restaurant management , our research would have a high possibility of working in fast food restaurants in the future. Therefore, our researcher chose this study to be aware of the incentives and benefits that employees can acquire upon employment in fast food restaurants and hotel industry. Likewise, they also want to find out what are the impacts of the given incentives to the employees’ work performance. The use of incentives and other methods to get employees motivated to produce higher quality and more productive work results. Fast food restaurant jobs can be stressful, long hours, demanding customers and the constant pressure to be friendly and cheerful can take its toll on your own workers. Incentive programs can help keep staff be motivated especially on high-stress days. They can also build loyalty and create a positive trusting relationship between management and staff. Companies use employee incentive plans for a variety of reasons and examples are, to meet or increase sales goals, to meet or increase production goals, to raise employee morale or for extraordinary employee performance, all for the drive to have success in the company. Plans range from simple rewards, including gifts and other bonuses that they will get. Statement of the problem Service activities become some serious problem which demand for proper investigation and examination in order to...

Words: 257 - Pages: 2

Premium Essay

Incentives

...company’s incentive plan, the organization has to have a strategic reason identified. It usually depends on the size of the organization that gives key reasons for establishing incentive plans. The reasons for incentive could include; attracting employees or keeping current ones, reducing absenteeism, or lateness. The organizational objectives should coincide with the incentive to make the company’s better. Citizens has had a problem with employee’s coming in late and have established a disciplinary policy, but also has established a reward incentive for the employees who are always on time. The company gives time off quarterly to one employee per department; they will receive a half day off. The half day off is restricted during the busiest days, but has to be done on other occasions with a supervisor’s approval. The time off incentive is offered to all employee’s part and full time employees and also temporary personnel when permitted. The company also gives one full day off reward incentive to handle the absenteeism that is a reoccurring problem. Giving a day off ensures that employees will come to work and take fewer days off for sick or other various reasons. At the end of the quarter the company throws all the names of employees in a box and one person will have the day off that they want with supervisor’s approval. The employees strive to get that extra day off and get paid for it, this has kept employees from taking too many days off. The incentive plan that......

Words: 552 - Pages: 3

Free Essay

Google & Employee Incentives

...developed during the 20% time in their product offering. As the book explains, the relationship between job satisfaction and job performance is stronger in complex jobs because employees will typically have more autonomy to make decisions about their work. Google offers a significant amount of autonomy in its complex jobs, and this mix has been a beneficial one. Google stands by the conventional wisdom with respect to motivation and job satisfaction, in that they believe that without happy employees, a company cannot be successful – its managers will suffer, its customers will suffer, and it in the end the company will suffer. Although being “happy” does not necessarily equate with “job satisfaction,” nor the ability to motivate an employee, this paper explores the common threads between them, and delves into what it takes to ensure that employees are satisfied with their roles so that they can be easily motivated, accountable, and in turn benefit the company as a whole. Background Google was officially incorporated in 1998, and quickly moved to its current headquarters in Mountain View, California. Google was founded by Sergey Brin and Larry Page, two Stanford graduate students who would very quickly change the world. With some venture capital funds and a fantastic product, Google exploded within just a few years. Although it seems unfathomable, Gmail has only been around since 2005. However, Google’s ability to attract and retain top talent is what has kept it...

Words: 3077 - Pages: 13

Free Essay

Employee Incentives

...Individual Research Paper: Employee Incentives The purpose of this paper is to discuss incentive programs for teachers. In a society where education is more important as ever, public school districts should be thinking of new ways to encourage their teachers to remain in the educational field. Teachers are leaving their desired profession to find employment that has enhanced incentives. According to Management-People, Performance, Change, “a growing number of companies are launching inititives so that employees can balance their family and work life. The most common inititives are redesigning work, alternative work arrangements, leaves, time-saving assistance, emotional well-being, financial assistance, legal assistance, relocation, health benefits, wellness, parenting, childcare, child develepment, exceptional care giving services, and handling family issues in the office.” In order to preserve respected, qualified, and experienced teachers, incentive programs for educators need to be improved. The school district I will be discussing has 18 schools. According to Connecting Business to the Future website, the school district “is one of the newest school districts in their state. In 2008, it was surveyed to have more than 15,500 and 2000 staff members.” The school district is the 2nd largest employer in their county. I interviewed two high school teachers, and one principal from the school district. They all agreed there is a large turn over with teachers and......

Words: 1127 - Pages: 5

Premium Essay

Benefits of Incentives

...INCENTIVES An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure). Economic analysis, then, of the differences between societies (and between different organizations within a society) largely amounts to characterizing the differences in incentive structuresfaced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success. Benefits of Incentives Some benefits of incentives are: 1.) Spill-over Effects: The decision to employ incentives will not only influence the immediate behavior of the target, but will also have a "spill-over effect" on relations in general. 2.) Legitimacy: It is generally much easier and less controversial to increase another's prosperity in return for a desired action, than to forcibly deprive them of something if they do not conform. 3.) Market Forces: Eileen Crumm argues that market forces work against sanctions, while incentives can be tailored to maximize their value to the targeted actor. 4.) Addressing Needs: Conflict largely arises out of political, economic or security-related need. Sanctions increase that need; by subtracting from the target's political, economic, or security baseline, they exacerbate the......

Words: 3169 - Pages: 13

Free Essay

Incentive Programs and Employee Engagement

...compensation and employee engagement. 2. Why are you interested in this particular topic? Is there a connection to your field of work or are you looking to broaden your knowledge base on the subject? I am interested in this topic because I would like to broaden my knowledge base on the subject. I have always been interested in employee engagement, but since I have enrolled in this course I would like to know compensation’s role in the matter. 3. Have you done a preliminary literature search on the topic? If so, how many recent journal articles (5 years or less) did you find? Would you be able to source at least 10 to 15 journal articles? Would you be able to write a 10 to 15 page, double-spaced paper on this topic? I have done a preliminary literature search on the topic and I have found 11 recent journal articles that I would be able to source. I would be able to write a 10-15 page, double-spaced paper on this topic. 4. What title would you give your paper? I would title my paper “Unlocking Employee Potential: The Link between Compensation and Employee Engagement”. 5. ------------------------------------------------- How would you construct the paper? What would the sub-sections be composed of and what would you label them as? ------------------------------------------------- The subsections of the Theories Discussed would be Employee Engagement; Motivation; Effects ------------------------------------------------- of Pay on......

Words: 443 - Pages: 2

Premium Essay

Incentive Plans

...Incentive Plans Paper LaKesha Lightfoot MGT/431 [ May 22, 2011 ] David Van Gorder Incentive Plans Paper Incentive plans are developed to encouraged motivation. Motivation comes in various forms, but most commonly in the form of money. Individuals find motivation by both recognition and money, which is the reason employers develop incentive plans that will appeal to both groups. Within this paper, incentive plans and how they relate to organizational objectives are reviewed. Whether those plans do or do not help the organization achieve its goals and objectives is also reviewed. Incentive plans Fittings Unlimited, Incorporated (FUI) has not considered the benefits of incentive plans. Therefore, employees have become inactive and lackadaisical. As individuals work and perform their job, it becomes second nature causing excitement and interest to fade. In an industry such as hydraulics, business functions at high speed and everyday needs are three days too late, employees need encouragement to keep going. Overworked employees who are under compensated make the need for motivational strategies more prevalent. Customer service, the essential element of an organizations growth process depends heavily on the employees administering excellent customer service. Motivating those employees with commission earnings from each sale would help ensure employees are performing at optimal levels. Commission earnings would show employees the value their employer put on......

Words: 677 - Pages: 3

Premium Essay

Incentive Pay

...pay incentives lead to greater effort than it would have if it was not present (Bonner, Sprinkle [2002]). Results Control empowers employees to take the best possible actions and holds them accountable for these actions in order to obtain the desired results (MCS). The fact that even today many employers continue to use pay incentive systems is an indicator that the model has worked and there are many advantages to using it, however some evidence indicates that there are few factors that determine its effectiveness (Bonner, Sprinkle [2002]). This essay will focus on the relationship between pay incentives and employee effort using economic theories, advantages and instances where it has been successful and the factors that impact the effectiveness of these incentives. The essay will contend that pay incentives are powerful motivators to induce effort however it needs to be designed carefully considering various contingency factors. There is a strong relationship between pay incentives and employee efforts, consequently greater efforts lead to higher performance. Evidence suggests that there are certain theories that detail the process through which monetary incentives lead to increase in efforts. According to (Bonner, Sprinkle [2002]) the Expectancy Theory an individual’s motivation is based on the relationship to the attractiveness of the outcome and the link between effort and outcome. This level of motivation then drives the amount of effort an employee......

Words: 1587 - Pages: 7

Free Essay

Incentives

...offering incentives for charitable acts is incredibly common, from tickets to baseball game for cancer research, to school projects to raise funds for a new building. The use of motivation to incentivise donations is undeniably effective, but is it still charitable when it becomes an ethical question? When does the focus diverge from philanthropy to materialism? Randy Cohen of The New York Times Magazine hosts a weekly column called “The Ethicist”, in which people ask ethical questions to which Cohen bears his answer. In April of 2003, a reader of his asked him a similar ethical question: “At my school, various clubs and organizations sponsor charity drives, asking students to bring in money, food, and clothing. Some teachers offer bonus points on tests and final averages as incentives to participate.Some parents believe that this sends a morally wrong message,undermining the value of charity as a selfless act. Is the exchange of donations?” While in many instances, the use of incentives may diminish or mitigate the value of charity, employing their use in charitable acts in an ethical way is entirely circumstantial. The use of incentives to encourage charitable acts exists as a way to spread awareness and maybe lend a hand for a benevolent cause. There are an astounding amount of charities that seek to carry out incredible, benign feats, but receive less than enough funding to arouse an appreciable difference. With that, these charities may utilize incentives to......

Words: 332 - Pages: 2

Free Essay

Incentive

...processes are undergoing continuous change, forward thinking companies are looking for new incentives to motivate labor. Companies are learning that they can no longer cling only to individual incentive pay plans. Just as an artist relies on a whole pallet of colors, the future success of incentives is having and using many different pay plans, each tailored to achieve a desired effect. There are many incentive plans for you to consider. Some even de-emphasize money and appeal to employees higher needs. I even discussed one plan, Merit Pay, in a previous Industry Advisor article. Now I will compare individual to group incentives – in certain key areas and provide highlights of the differences. Be aware that I am an advocate of group incentives. PERFORMANCE Individual Incentives Since each direct labor employee – who is motivated by money – is theoretically in "business for him/her self" there should be a strong inducement for high performance. A piece work operator could care less about a fellow operator’s performance. The relative productivity of each individual can be readily determined. Likewise, actual time spent on specific jobs is also easily determined and standards set. Individual incentives work best on singularity of product and long runs. They lose their effectiveness and are usually costly to maintain in a high style, fast in-process turnover environment. Group Incentives Groups attempt to empower people and tend to have a leveling effect on labor’s......

Words: 1308 - Pages: 6

Premium Essay

Incentive Compensation

...performance is usually an incentive plan that is based on the performance of each individual as well as the performance of the company. The incentive plan supports the pay-for-performance philosophy by aligning a percentage of total compensation with the attainment of annual business goals and individual performance objectives. The plan is also designed to increase awareness, understanding, and commitment to the business goals, as well as promote employee retention. Moving from a bonus plan to a pay for performance plan will require a lot of work for any organization and union. An effective pay for performance plan will need to be reviewed and negotiated periodically to ensure that the plan works for the organization and for the employees. The incentive plan will need to meet the company’s core objectives while retaining employees. “Too often I have seen organizations lose key people just after they received a substantial bonus or incentive payment. They hung around just long enough to get their "big pay out" and then left for greener pastures.” (Chapman, 2010) So how is the incentive or pay for performance plan determined? Union representatives and management must negotiate all aspects of the incentive plan. The negotiation must include information such as timeframe, production standards, and incentive payments. The timeframe will determine when incentives will be paid on a monthly, quarterly, or yearly basis. The amount or percentage for the incentive payment......

Words: 1100 - Pages: 5

Premium Essay

Employee Incentive Programs

... Employee Incentive Programs Leasil Albert OMM 618 Prof. Steven Pierce May 8, 2012 Employee Incentive Programs Employee incentive plans are successful resources to encourage reliability, obligation, and serious hard work. Employee incentive programs should be a key apprehension for managers today. It is becoming more and more complex to attract and keep high-quality employees, and opposition amid companies for the professional personnel is powerful. A carefully intended plan can advance not just the individual employee's attitude, but the association entirely. One of the most frequently known employee incentive plans is recognition. A recognition program can emphasize numerous key areas such as the number of years an employee has been with the company, peer recognition, monthly appreciation ceremonies, or recognition for an explicit job well done. Bonus incentive programs are very useful tools in getting and keeping excellence employees. A bonus incentive program does not have to be financial to be successful. Studies have revealed that employees from time to time react fine when commended for great work, as they do money. For some organizations, a system of admiration and recognition for supported by small, non-monetary rewards may be adequate to keep employees motivated. A disadvantage in recognition programs is that a more pay-based reward programs might be necessary to keep employees motivated. Employee recognition......

Words: 518 - Pages: 3

Premium Essay

Incentive Plans

...Incentive Plans Most companies use incentive plans in order to retain their current employees and also help recruit new employees. By offering yearly raises, a bonus structure, and performance reviews, employees can be more motivated to perform better and be a valued asset within the company. RealManage does offer incentive plans for each employee however, they are inconsistent to everyone. Most property management companies offer a 3%-5% annual raise each year to help compensate with inflation. RealManage promotes this plan when recruiting new employees. They promote highly competitive pay and place employees on a career path. The president of the branch informs each employee what the career path might be and a timeline is provided. tresero ( 2009), “No one size fits all incentive plan exists”. There are different plans for each employee when it comes to compensation. All hourly employees are presented with unlimited over-time and the ability to charge back all the mileage that you have while commuting back and forth to anything business related. Salary employees are presented with flex time and have the ability to not only charge back mileage but anything that is out of the scope of the contract between the homeowner’s association and the management company. The only difference is when an employee is hired on with RealManage, the compensation incentive suddenly changes. The hourly employees are not allowed to accrue over time hours once the meeting is over. So if an......

Words: 813 - Pages: 4