Link Between Motivational Theory And Incentive Business Essay

This survey will investigate the link between motivational theory and reward in pursing successful execution of such processes and the monitoring of the in terms of employee performance.

Assess the hyperlink between motivational theory and reward

"Motivation is the process where the behavior of a person is influenced by others, through their power to offer or withhold satisfaction of the individual's needs and goals". (BPP Learning Press, 2010) Motivation ideas are split into two different viewpoints. See content and process ideas of inspiration in (Appendix 1). Content theories emphasis what motivations are, whereas process ideas emphasise the true process of motivation. Alternatively compensation is something that employees achieve during their job. It could be financial when the business pays for their performance and it could be non-financial which in this case means that the company rewards employees by campaign, achievement and reward.

"Maslow puts forwards a theory that there are five levels of human needs which employees have to have fulfilled at the job" (Mullins, 2005). See (Appendix 2).

Maslow mentions in his theory that professionals following this theory deflect their attentiveness to offering complementary pleasing associations, more appealing work, and much more opportunities for self-fulfillment.

On the other palm, Herzberg in his theory suggests that there are two basic needs of individuals such as health factors (environmental factors) and desire factors. See (Appendix 3). Managers following Herzberg's theory reject money as a motivator and focus on providing more job enhancements.

According to McGregor's theory, managers may follow two different ideas which is theory X and theory Y. Pursuant to theory X, the average staff dislikes work and will avoid it whether he/she knows how to proceed or not, that is why employers suggest Theory Y which leads them to do excellent job and managers offer opportunities to have a job done. However, McClelland focuses interest on providing employees with the capability to persuade their needs for success, ability, and relationship.

Companies use both positive amplification and negative amplification to inspire employees. Managers might use positive motivation techniques to persuade employees to produce good quality job. Some managers might use negative motivation techniques to encourage employees and stop them from bad manners. However, companies encourage their workers with both touchable products, as well as admire. Mangers may encourage their employees by providing weekly or regular monthly bonus or free lunches, many managers prize their top employees by praising them.

For example: Tesco uses two motivation ideas - Maslow's and Herzberg's, see both hierarchies in (Appendix 4). Tesco uses Maslow's theory because it suggests the business if indeed they achieve one level then it motivates them to achieve the next one. Also Tesco aspire to motivate its personnel both by paying interest to sanitation factors and by permitting satisfiers. For instance, Tesco motivates its staff by good communication, by giving responsibility and involving employees in decision making. Tesco allows the staffs to be part of the talks on pay increases. This shows credit of the task that staff will and rewards them.

In Tesco, they prize staff for their works since it helps to keep motivating them at the job and will carry on applying different motivation theories at the job. Monetary pay back uses by Tesco in ways of getting employees to welcome the complete value of their benefits offer. Tesco also comes after pension system and this usually includes pension assistance that the employer creates on the employee's behalf and being process in payroll office. They also compensate employees by giving them extra benefits such as car insurance and private medical care insurance, by special deals and special discounts. See Tesco's pay back system in (Appendix 5).

Evaluate the procedure of job evaluation and other factors deciding pay

The Process of Job Evaluation:

"Job evaluation is a organized process for defining the relative value or size of jobs within an organisation in order to establish internal relativities. It provides the basis for creating an equitable class and pay structure, grading careers in the framework and controlling job and pay relativities. "(Armstrong, 2006)

Job evaluation is actually an comprehensive process and it must follow in an orderly approach. In the beginning of this process management must make clear to its staff the reason of this job evaluation and importance of it. From then on a team has been place where all the enlightened HR specialists and staff are included. In the next step organisation chooses the work from each office they are going to judge, then the chosen job is looked into in detail by the committee. Next, the HR chooses a method for the work evaluation. A couple of two methods that can be followed to evaluate employment and these are: "Analytical - points rating, factor contrast, proprietary brands; and Non-analytical - job standing, job classification, matched comparisons". (UK Essays, 2013)

The other factors identifying pay:

The pay, which is an prize for work, can be inspired by various factors and it generates some difference between your functions and the organisations. Those factors are:

Size of the organisation,


Skills and experience,

Industry sector,

Profitability of the organisation,

Employee performance. See (Appendix 6) for more detail.

The effectiveness of incentive systems in various contexts

Bratton and Gold (2003) define a reward system as "The mixture of extrinsic and intrinsic rewards provided by the company. It also consists of the integrated policies, processes, methods and administrative types of procedures for implementing the machine within the framework of the human resources (HR) strategy and the total organisational system".

There are two types of rewards: Extrinsic rewards which are tangible rewards that employee receives for his or her good performance, such as bonuses, salary raise, gift items, promotion, settlement and commissions. Intrinsic rewards are inclined to give personal satisfaction to a worker, such as information, responses, popularity, trust and marriage.

Employee benefit systems are positive strategies plus they can provide real motivation. Additionally to financial thoughts; benefit systems take into account factors such as attendance, customer service, quality, group and specific performance. Also bonuses increase employees' inspiration and outcome. It improves employees' morale and rises their self-esteem. However, a carefully prepared bonus plan can improve retention which helps to protect the best employees.

Salary increase is the other types of incentive system which is one of many motivators for the employee, and yes it is the key determination behind an employee's performance.

Promotion is one of the main types of praise system, where an organisation rewards a worker by moving them of their position to a higher position. Promotion increases employee's morale and job satisfaction.

However, better performance can be an effectiveness of praise system; it helps the employee to perform better at work to be able to get extra pay back from the organisation. At the same time employees also work hard and put their skills and understanding which assist them to gain knowledge and find out something new.

However, prize system also raises profit, in which a company has good chance to make return because employee works truthfully and carefully. In addition, it helps to bring positive subconscious deal between employees and the company; it creates a much better working environment and helps organisation to keep gifted, potential employees with them.

Examine the techniques organisations use to screen worker performance.

There are some methods that are used by Tesco to keep an eye on their employees' performance. Tesco uses observation and responses to keep an eye on their employees' performance. In this system Tesco hires someone to screen the performance of the worker, from then on this person provides simple opinions. By observing and providing responses Tesco can give the accurate form to the employees of what's expected from them.

Tesco also uses performance expectations which is one of the employee shows monitoring method where performance has been compared with the criterion and where employee needs to make this happen criterion. In this technique performance must be natural, measurable and portrayed in terms of their time, quality, cost, volume, effect, or types of performance.

Performance evaluation is another method that utilized by Tesco to determine the genuine job performance of an employee against chosen performance expectations. In Tesco employees' are interviewed to discuss their performance to recognize talents and weaknesses, also to create an idea how to boost weaknesses and increase strengths.

Tesco also uses a method known as "360-level appraisal" (Business Circumstance Studies, 2013). In this technique all Tesco's stakeholders assess an employee's performance and give them feedback. For example, a manager of 1 department gets feedback from their administrator from HR section and their team.


The conclusion of this report shows that employees' drive and reward are extremely important. You will discover many types of theories of determination such as Maslow's, Herzberg's, McClelland's and McGregor's theories. Each theory has a somewhat different view of leader's and employee's drive. Motivation is professionals' action to affect employee's behaviour at work, so that perform as required in order to achieve organisational goals. Reward management can be view as a type of management practice where employees are rewarded for his or her performance. Rewards can be tangible and intangible benefits for the worker as part of employment relationship. Employees consider the prize as a come back in exchange of their performance being loved by their company.

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