Discuss Reward for Performance and Contribution. Evaluate with Advantages and Disadvantages.
The reward for performance and contribution in organisations refers to incentivising employees to give better performance and more contribution to the organisation. This could be accomplished through financial bonuses, promotions, recognition, and others (Mone and London, 2018). It is a good method of motivating employees to give their best, resulting in better organisational performance.
Advantages
The major pro of reward for performance and contribution in organisations is that it assists in fostering a high-performance and excellence culture. Through giving tangible rewards for exemplary performance, employees are incentivised to strive to improve and do their best continually. In addition, rewards for performance and contribution could assist employees in feeling appreciated and valued (Mone and London, 2018). This results in increased loyalty, job satisfaction and morale.
Moreover, reward for performance and contribution could assist top talent attraction and retention. Top performers often seek rewards and recognition for their efforts, and giving these could ensure that the brightest and best stay within the entity. Besides, giving rewards for performance could also assist in motivating non-performing individuals and putting in more effort since they will get rewards for it (Mone and London, 2018).
Disadvantages
Reward for performance and contribution could result in an entitlement sense among the employees. Knowing they will receive rewards for their efforts, they could become complacent and fail to work as hard as they would have done earlier. Also, it could result in inequality within the entity, as some employees could be rewarded more than others, even if their performance is not as better.
Moreover, reward for performance and contributions could be expensive for entities since the cost of giving rewards can quickly add up. Also, it could be hard to execute rewards equitably and fairly since it can be difficult to measure performance and contribution consistently (Mone and London, 2018). Hence, organisations should understand these pros to utilise them for maximisation. Similarly, they should consider the drawbacks when implementing rewarding policies and plans before evading the inconveniences.
Reference
Mone, E. M., and London, M. (2018, January 8). Employee engagement through effective performance management | A Pract. Taylor and Francis. Available at: https://www.taylorfrancis.com/books/mono/10.4324/9781315626529/employee-engagement-effective-performance-management-manuel-london-edward-mone-edward-mone-manuel-london
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