19 Mar 2022


Performance Management and Employee Incentive Programs

Format: APA

Academic level: University

Paper type: Essay (Any Type)

Words: 595

Pages: 2

Downloads: 0

Employee Incentives and Motivation

Motivation is one of the most important things in an organization as the level of performance of the employees depends on how motivated they are. However, I do not believe that employee incentives are effective in fostering motivation to the employees. There are some instances when the employees may be doing more and earning less, and it is in such a case that any form of incentive may not contribute towards motivation. In other instances, the organizations only reward a selected few in the organization, who may not have contributed towards the success that is being rewarded ( Van Esch, Wei, & Chiang, 2016) . For example, research shows that the lowest members of the organization who do most of the technical tasks are less likely to be rewarded. Consequently, some organizations do not pay their employees in the right manner, which means that even the incentives do not have any effect on motivation or the retention capabilities of the company. 

Employer’s Performance Management System 

The company uses a four-stage performance measurement system. The first stage is the annual performance review in which the managers outline the development plans. The second stage is where the company plans the development plan for the current year. The third stage is the reward and recognition where the organization outlines the performance-linked pay and recognizes the top performers with the fourth stage being the review of the results and competencies. Appraisal in the company was done annually based on the performance of the employee towards the achievement of the organizational goals that are set at the beginning of the year. The company recognized top performers by offering certificates and increments in salaries as well as duties. The role expansion offered the employees a chance to increase their earnings and earn spots within the company's promotion structure. For the low performers, a performance improvement plan was used to develop the low performers and allow them to have a chance to developing the necessary skills to achieve the expected performance. This system was effective as the performance was measured based on the type of work that one does and not on an overall basis. It catered for the needs of the employees as the performance improvement plans created a platform where the rest of the workforce was advised on various issues related to performance ( Van Esch, Wei, & Chiang, 2016)

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

HR Recommendations 

Offering incentives in an organization can only work if the employees are doing manual work. This means that those who are performing tasks that require cognitive skills may not be motivated by monetary incentives. The implication is that the organization should ensure that the employees are well paid to remove the question of money as one of the motivating factors among the employees. A performance management system can be improved by ensuring that employees have autonomy in what they are doing. This means that they are free to develop their own ideas, which will create job satisfaction and eventually a higher employee retention capability of the organization. Mastery is important in making sure that employees are motivated to help the organization achieve its goals. Being self-directed provides the employer with a chance to have employees who can master certain skills leading to better products as well as a better performance from the employee. For example, a design company giving its employees autonomy may realize that its employee workforce is capable of developing various designs that they would not have developed under the current environment in the organization. Autonomy gives employees a purpose for mastery, which means better ways of doing things and better results for the company ( SNHU COCE Assistive Technology, 2015)


SNHU COCE Assistive Technology. (2015, June 8).  RSA Animate Drive The surprising truth about what motivates us  [Video file]. Retrieved from https://www.youtube.com/watch?v=WbSFDBsNCus

Van Esch, E., Wei, L. Q., & Chiang, F. F. (2016). High-Performance Human Resource Practices And Firm Performance: The Mediating Role Of Employees’ Competencies And The Moderating Role Of Climate For Creativity.  The International Journal Of Human Resource Management , 1-26.

Cite this page

Select style:


StudyBounty. (2023, September 15). Performance Management and Employee Incentive Programs.


Related essays

We post free essay examples for college on a regular basis. Stay in the know!

How AI Can Help Retailers Solve Business Problems

The global marketplace is currently more integrated than ever before. This situation presents a never-before experienced opportunity for retailers. Multinational organizations whose sole basis is the internet have...

Words: 2700

Pages: 5

Views: 138

The Natural Organizational Model and the Informal Groups

The nature of an organization is based on different factors such as the environment it is set up in. also, the type of activity it undertakes. This paper will examine the natural organizational model, the informal...

Words: 3009

Pages: 10

Views: 239

Why Pinkberry should focus on making orange and yellow the two prevailing colours

The fact that Pinkberry has evolved from a storefront to a nationally recognized brand makes this franchise of frozen dessert yogurt shops an example to be followed. Yes, the personality of a brand created a platform...

Words: 582

Pages: 2

Views: 94

Ford Motors: Board Presentation For Electric and Hybrid cars Production

Executive Summary The motor vehicle industry in America and worldwide is highly competitive with major players no longer enjoying the dominance that they had had before. Innovation and identification of trends...

Words: 1088

Pages: 4

Views: 130

Home Remodel Project Plan

Project Overview Home remodeling is one of the notable key projects undertake through project management, as a project manager is expected to come up with a clear plan that would help in meeting the expected...

Words: 2152

Pages: 8

Views: 69

How Airbnb Achieved Success

Hospitality industry includes firms that provide lodging and dining services for customers. Many of the businesses in the travel and hospitality industry offer customers with prepared meals, accommodation, snacks,...

Words: 906

Pages: 3

Views: 63


Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.