The Importance of Pay in Employee Motivation: Discrepancies Between What People Say and What They Do

653 Words Sep 14th, 2011 3 Pages
Reflection on THE IMPORTANCE OF PAY IN EMPLOYEE MOTIVATION: DISCREPANCIES BETWEEN WHAT PEOPLE SAY AND WHAT THEY DO
Introduction
Leadership is "organizing a group of people to achieve a common goal." The leader may or may not have any formal authority. Students of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence among others.
Discussion and Analysis
The use of monetary or other financial incentives in the classic “work performance paradigm” is based primarily on reinforcement theory. Reinforcement theory focuses on the relationship between a target behavior (e.g., work performance) and its consequences Money and employee motivation.
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The breadth of employee engagement was substantial. About 2/3 of the business units scoring above the median on employee engagement also scored above the median on performance, while only about 1/3 of companies below the median on employee engagement scored above the median on performance (Harter, Schmidt & Hayes, 2002).
In another study, Eileen Appelbaum and her colleagues studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible high performance production systems involving teams, training, and incentive pay systems. In all three industries, the plants utilizing highinvolvement practices showed superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work.
Conclusion
Larger studies have confirmed the positive effects of high-involvement work practices in manufacturing. In 2005, Deepak Datta and his colleagues analyzed survey responses from 132 U.S. manufacturing firms and found that firms utilizing high-performance work systems showed significantly higher labor productivity than their competitors.========

In another study, Eileen Appelbaum and her colleagues studied 15

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