Application of Motivation Theory in Financial and Non-Financial Reward System

Reward system is the procedure in which the employees are appreciated in attaining the goals and objectives. The employees should be acknowledged on their work so as to increase their productivity. The employees may be appreciated may be done using the financial or the non financial rewards. The financial reward system is appreciating employees using money and may include increasing the monthly pay of the worker.

Giving the money is another way of appreciating the employees (Werner & Desimone, 2008, pp. 76). While non financial reward system is appreciating employees without use of money. Employees may also be appreciated by congratulating them when they do something good. Promotion may b e given to people who do a good work. This will encourage other employees to work hard (Werner & Desimone, 2008, pp. 78).


This theory supports the non financial reward system. An employee should be rewarded when he does something good. Rewarding the employees increase their abilities to produce more. In this theory the mode of rewarding employees should be fair. It should not show favors towards one person. A worker may be rewarded by giving him some time off work when his job is good. Congratulating an employee is another way of rewarding them. Everyone likes when his /her good work is appreciated. Appreciation is not only done using money. Making someone feel important is a good way of showing appreciation.

The management should have a good plan on the way the employees are to be appreciated. This will ensure a fair mode of appreciation. Acknowledging other employees more than others may discourage the employees from working hard. The way the manager or the supervisor is appreciated should not be the same as the way the clerk is appreciated. The appreciation plan should be planned in a way to recognize the positions of the employees. The management should have a good way of weighing up the employees work (Latham, 2007, pp. 112).

Theory X and theory Y

This theory focuses on two theories theory X. The other theory is theory y. Theory X focuses on the negative side of the employee. This theory refers employee as someone who is independent. Theory Y argues that the worker is dependent; the employer cannot trust the employee with his work. Theory X argues that a worker who works for longer hours than what is stipulated should be rewarded with money. The overtime payment should be put in a way that is higher than the actual pay (Storey, 2007, pp. 129).

This will encourage the employees to do more overtime job hence becoming more productive. Employees may also be paid based on the amount of work they do. The work an employee does may be measured and paid accordingly. This will encourage them to work harder so that they may accomplish more work hence more pay. Payment may be done based on commission. A worker may be paid depending on the amount of work he/she does. This will act as an enticement to the worker. Every worker will struggle so as to get high pay. Employees who achieved the target can also be rewarded. This will encourage other employees to be more productive. Target should be set for every employee (Werner & Desimone, 2008, pp. 103).

The management should stipulate a way of recognizing the employees who works hard. Other companies reward the employees by offering them some shares in the company. Also the employees may be rewarded using the monetary terms. A company may also provide work security to the workers who work hard. There is nothing more discouraging in the work place than being insecure about the job. Employee’s monthly pay may be increased. Rewarding employees will enhance their productivity (Weiten, 2008, pp. 90).

Hierarchy of needs theory

Company needs target in so as to be doing well. Set targets will encourage the workers to put more effort in work. Every company strives to have a way of motivating the workers to put more effort in their work. Encouraging the employers to do more work will result in more production in the organization. Employee’s intrinsic needs must be based in the reward system. The needs of the individuals may vary. An old lady’s needs are not the same as the young man’s needs (Robbins, 2008, pp. 46).

These needs should be considered in rewarding them. A young man may be given a computer or a radio. An old lady may be rewarded by going her with good necklace or buying her good dinner dress. These needs are supposed to be considered so as to satisfy. Rewards can be done in monetary or non monetary terms. Some people may like being rewarded by use of money or the non monetary terms. An employee may be rewarded by giving him a company’s car to use (Miner, 2005, pp. 77).

Another way of rewarding an individual may be by providing him with a good office. When someone works hard he may be moved to a bigger office. A person may also be rewarded by providing him with a free medical cover. Medical cover is a very important thing and most companies’ tax employees for the medial cover. This theory supports any form of appreciation. However this reward must satisfy an employee’s needs (O’Toole, et al., 2007, pp. 214).

Vroom Theory

Motivation of a worker depends on his perception. The worker may perceive the work of an organization as being important or less important. The effort used in work depends on the way t individual perceives the value of the goal.Effort needed to meet the set target, the likelihood of meeting the set target all depends on the motivation of the worker. This opinion is influenced by the workers past jobs (Lussier & Achua, 2009, pp. 97).

The know-how helps one to have a better self evaluation. This evaluation will better the productivity of the worker. The worker should be given an opportunity to evaluate himself so as to increase the understanding of the work he is expected to do. In addition to this, a worker may be rewarded so as to increase his productivity. The reward system can be essential rewards (Levy, 2009, pp. 63).

This is where individual essential needs are considered in rewarding. Another one is the non essential reward. Individual may prefer being rewarded with non essential things like. This may include things like a trip to some exiting places. The rewards must satisfy a worker. This shows the importance of to carefully plan for the reward process. A good plan will lead to a good rewarding system (Kail & Cavanaugh, 2008, pp. 132).

Reinforcement reward

This reward focuses on the financial reward system. The positive reinforcement is where someone is appreciated for doing something good. Negative reinforcement is whereby somebody is made to face the consequences of failing to do good job. An employee who is rewarded with money is likely to perform better than an employee who is not rewarded. An employee may be given some money as incentives. Salary scale may also be raised if an employee has been working hard. Take an example of a company which has a rule that every employee will have his salary increased by a quarter when he meets the set target (Hodson & Sullivan, 2007, pp. 116).

Every worker will work hard to meet the set target so as to have his salary increased. An employee may be punished if he does something that may course a downfall of an organization. Punishment makes the employees shun away from doing mistakes in their work. An employee may also fail to get any reward. When an employee is doing a good job but fails to display a good behavior at work. He may not be rewarded for his good job. Failing to reward him may make him change the bad behavior like coming to work late. All these issues will motivate the workers to put more effort in the work place (Hitt, 2008, pp. 107).

Hygiene theory

The hygiene theory focuses on the financial reward.Its main part of interest is on the monthly pay of the workers. It also focuses on the emotional and mental comfort of the worker. All workers must be comfortable in the work place. Workers are more productive on a comfortable work place. The worker should be willing to be supervised. The supervisor on the other end should supervise the worker. All this must be done with Justice. The working condition should be favorable (Hellriegel & Slocum, 2007, pp. 145).

This will give the workers a comfortable area to do their work. The relationship between the workers should be good. All workers should be in a good relation so that they may work to achieve the desired organization’s goal. The seniors and the juniors in an organization should be in god terms. Every individual requires job security. Working without security will result to low production. Well paid employees deliver more than the under paid employees. The salary of the employees should be reflected on the amount of work a worker does (Beardwell, 2007, pp. 123).

Acquired theory of needs

This theory covers the various categories of people who need various needs in the workplace. One of the roles of this theory is to enhance the needs of the achievers group of people who always wants some things done and its rewards is realized through the non financial means. The theory enables the achievers attain what cannot be achieved through the financial or material things (Landy & Conte, 2009, pp. 213).

It enables the achievers categorize themselves in a way which will boost their abilities and morale to work so as to be one of the controlling or center of authority. They are enabled to strive for success by attaining their objective in the environment. This theory is important as it enables people to take part in functions which will benefit them. The theory enhances the creativity of the workers to avoid the risky activities (Callaway, 2007, pp. 182).

This theory allows the kind of people who are after the favorable relationship with other people to be shown thumbs up for what they are doing. It enables people who are after the approval of others without any interest of the recognition. This theory also will enable the type of people who are after power to achieve it so as to have their controlling stakes for any reason which could be that of personal gain or attainment of more objectives. This group of people will not need any sort of acknowledgment of others (Daft, 2007, pp. 51).

The theory of acquired needs supports the non-financial reward system of the people who are after other objectives which do not relate to the financial gains but for personal interests such as power, affiliation and achievement. The theory enables people to achieve their satisfaction through the non financial rewards which are not of any interest to the people. The theory also enhances good quality management skills in the work place. The employees will be able to apply this theory in workplace by utilizing the excellent leadership skills (Aamodt, 2009, pp. 19).

The carrot and Stick Approach

This theory plays a role in promoting the motivation of the workers in the work place through the interests of the people to stay away fro any form of pain that may be felt. The theory also brings out the concept of pleasures as a motivator for people to work. It is through the quest of people to stay away from pain which encourages or motivates people to work. The pleasures which people want to have are another motivator behind the people efforts to work (Bohlander & Snell, 2009, pp. 71).

The theory has challenged that there must be something for the person to work hard and strive for it to achieve. The theory is very important as it also indicates to us that the punishment which people get for failing to work is one of the main motivators (Storey, 2007, pp. 97). This theory supports the financial and non financial motivators as the main drivers behind people abilities to work. People have to be motivated by the reward they will get when they work so as to bring them to a point of appreciation. Workers contributions are very important and hence application of this form of motivation is very important since they will be driven by self-interest motives to attain them while being productive (Kalat, 2007, pp. 56).


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