MGT501 Human Resource Management Assignment 2 Spring 2014

A new CEO of a telecommunications company knew that there has to be a better way to get his employees to be more productive. Earlier, this company had a good incentive program that those employees who produced well in accordance with established company goals would receive award at weekly, monthly and quarterly intervals. Something, however, was not working right. It appeared to CEO that after an award was given, productivity would slack off until the next major award was nearing. The CEO implemented his new system‐one in which no systematic process was in place to provide reward. Rather, he now takes it upon himself to administer the rewards as he sees fit. This means that employees don’t know when they may be rewarded but understand that any reward given is attributed solely to company profitability. Since its beginning, this unusual incentive plan has resulted in significant changes in the company. Productivity has shot up, while simultaneously work force has shrunk; company sales record are being broken each year; and employees are receiving more reward than ever before. One difference, however, is that these rewards are tailored to the unique needs of each employee; that is, rather than a rigid incentive plan whereby employees receive a similar reward, employees are now afford the opportunity to receive what they want. And what are some of these tailored rewards? One employee got a five‐day, all expense paid trip to Dubai for the entire family; another got an expensive suit and a set of pearls for his wife; yet another got an expensive Laptop (portable personal computer). Questions 1. How CEO has linked his self‐determined reward system to the motivation process? (5‐Marks)

People are centrally concerned with motivation — how to move themselves or others to act. Everywhere, parents, teachers, coaches, and managers struggle with how to motivate those that they mentor, and individuals struggle to find energy, mobilize effort and persist at the tasks of life and work. People are often moved by external factors such as reward systems, grades, evaluations, or the opinions they fear others might have of them. Yet just as frequently, people are motivated from within, by interests, curiosity, care or abiding values. These intrinsic motivations are not necessarily externally rewarded or supported, but nonetheless they can sustain passions, creativity, and sustained efforts. The interplay between the extrinsic forces acting on persons and the intrinsic motives and needs inherent in human nature is the territory of Self-Determination Theory.

Self-Determination Theory (SDT) represents a broad framework for the study of human motivation and personality. SDT articulates a meta-theory for framing motivational studies, a formal theory that defines intrinsic and varied extrinsic sources of motivation, and a description of the respective roles of intrinsic and types of extrinsic motivation in cognitive and social development and in individual differences. Perhaps more importantly SDT propositions also focus on how social and cultural factors facilitate or undermine people’s sense of volition and initiative, in addition to their well-being and the quality of their performance. Conditions supporting the individual’s experience of autonomy, competence,and relatedness are argued to foster the most volitional and high quality forms of motivation and engagement for activities, including enhanced performance, persistence, and creativity. In addition SDT proposes that the degree to which any of these three psychological needs is unsupported or thwarted within a social context will have a robust detrimental impact on wellness in that setting.

CEO can link his self reward system with motivation due to performance appraisal mean on the base of performance appraisal they can evaluate the employee and if any employee have right for reward so otherwise not so according this situation motivation level of the every employee will increase and they move their direction in a positive way as in first circumstance as employee know that they work hard when they think that the time of reward is near
2. Would you consider new incentive plan to be fair, when one employee can get a trip to Dubai for the entire family, while another got an expensive Laptop (portable personal computer)? (5‐Marks) Companies use employee incentive plans for a variety of reasons–to meet or increase sales goals, to meet or increase production goals, to raise employee morale or for extraordinary employee performance, all of which drive the success of the company. Plans reward employees for their achievement and create a sense of accomplishment. Incentives can range from simple rewards,

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including gifts, plaques or trophies to monetary rewards, such as profit sharing, bonuses or travel incentives.Handing out the same rewards to all employees regardless of the level of their performance can be counter-productive. But a plan that is graduated according to each employee’s level of success is perceived to be fair by employees and motivates less productive employees to raise their performance.