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Research Essay On Organisational Behaviour

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Money and other financial rewards are a fundamental part of the employment relationship and can be used effectively in motivating employees. Discuss the pros and cons of this argument....

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Money and other financial rewards are a fundamental part of the employment relationship and can be used effectively in motivating employees. Discuss the pros and cons of this argument.

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Negatives / Drawbacks Associated With Financial Reward SystemMany a times, it is observed that financial rewards are inconsistent. This is because at times, the company might perform well, whereas it might perform poorly the subsequent year. Therefore, due to poor performance, it might not be able to reward its employees with financial rewards and bonuses even if they worked harder than when the rewards were given to them. This might hurt their morale and de-motivate them significantly. Furthermore, the concept of financial incentives might de-motivate the spirit of teamwork (Hamel G, 2018). This is because incentives are normally given to an individual only (and at times the effort of entire team for a particular task is not recognized). Another drawback associated with financial rewards whilst employees working hard overtime, is that they may feel overburdened which could lead to lower productivity per hour. Many a times, financial incentives are given on the basis of customer interactions of the employees. Although this might push performance of employees, it can be a turn-off for most clients due to aggressiveness of most salesmen (Hamel G, 2018). At time, it may also be possible that due to frequent receipt of monetary incentives, the non-monetary incentives might just seem as an entitlement to the employer (Reddy C, 2018). Furthermore, it is quite possible that financial incentives create a sense of inequality amongst employees in organizations. Therefore, employees who did not get financial incentives might not well consider the performance factors (Reddy C, 2018). Employees working at higher levels of authority in the organization are not much motivated with financial rewards. According to Herzberg’s theory of motivation, it is important to provide other incentives to satisfy needs of ego, status and self-actualization (Chand S, 2018). Therefore, it can be said that money is not the only motivator when it comes to satisfying human needs. Various other incentives could include recognition, praise, participative management and much more (Chand S, 2018). 

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