The objective of an incentive is to incite action within an organization using a device or mechanism that that allows the rewarding or recognition of behaviors. This can be accomplished by offering preferential treatment, money, privileges, promotions, verbal praise, or complements. With that states, I suggest the answers to the questions above are:
~ YES ~
~ YES ~
~ YES ~
I admit this topic is not the norm when it comes to the subject of employee moral. Usually this type of discussion involves companies that are not in tune with the pulse of their workforce and have severe performance issues that could be further aggravated by either non-existent or poorly functioning incentive programs.
The one thing you will not walk away from at the conclusion is that somehow recognition is wrong, or that employees should not be motivated, and that incentives are no longer a viable factor in performance related issues. However, sometimes while trying to do the right thing excessively well can actually produce the wrong results, for the right reasons.
I believe that the greatest management principle explains that what gets rewarded gets done. If you are not getting the desired result within your organization, ask yourself what behaviors are being rewarded. It's a very simple, but very powerful question.
I've practiced it, trained others on it, and believe it should represent the cornerstone in any improvement initiative. Over past 8 years, I've created countless bonus structures, incentive plans, and contests designed to drive sales performance, attendance improvement, attrition reduction, and quality initiatives for entry-level employees all the way up to senior managers. When I say, "I believe in recognition, and incentive programs", I mean it and have the experience to back it up.
I like to think of incentives and recognition as wonderful little gifts that are awarded to the best and brightest for going above and beyond or for one's voluntary willingness to perform a potentially undesirable function in attempts to assist the organization. Employees work for their agreed pay rate, and these gifts are sprinkled around to promote an environment of appreciation and good will for a job that is both appreciated and well done.
With all this good will in the air, what seems to be the problem? What happens in the midst of the chaotic Business environment is the context of the incentive can become confused. Without context, the meaning and objective is no longer anchored and becomes subject to interpretation. These suggestive interpretations can originate from poor communication, lack of specificity, or failure to maintain the differentiation between job expectations and an incentive or reward. In a worse case environment, context and interpretation loss can create an informal employee contract where performance is no longer contingent on their agreed to wage, but rather on the existence and significance of an incentive.
To help your visualization I've included both obvious and subtle situations that can result from interpretation - context loss.
Attendance Trap? To discourage absenteeism an incentive bonus is put in place, as a result employees come to work and have great attendance. Supervisors support this policy by encouraging workers to come to work so they do not miss out on the bonus. The employees continually receive this incentive, but then attendance improves for the organization, and the bonus is dissolved.
? What is the context in which this employee will view this situation?
? How will they view the value of attendance without the incentive?
Sales Slip? An incentive program is put in place to boost poor sales performance. If an employee meets their sales goal, they can receive an incentive of several hundred dollars. Supervisors encourage their reps to do well so that they can be "in the money". This continues for several months. Employees are now expecting this as part of their income, but due to financial problems with the company, the incentive is discontinued.
? What is the context in which this employee will view this situation?
? How will they view achievement of their sales goa
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