Outline
- Abstract
- Keywords
- 1. Show Me the Money
- 2. What Monetary Rewards Can Do and Why
- 3. What Monetary Rewards Cannot Do and Why
- 4. Best-Practice Recommendations on How to Use Monetary Rewards Effectively
- 4.1. Principle #1: Define and Measure Performance Accurately
- 4.2. Principle #2: Make Rewards Contingent on Performance
- 4.3. Principle #3: Reward Employees in a Timely Manner
- 4.4. Principle #4: Maintain Justice in the Reward System
- 4.5. Principle #5: Use Monetary and Nonmonetary Rewards
- 5. Conclusions
- References
رئوس مطالب
- چکیده
- کلید واژه ها
- 1. پول را به من نشان بده
- 2. کارکردهای مثبت و منفی پاداش های مالی
- 3. پاداش های مالی چه کارهایی را نمی توانند انجام دهند و چرا؟
- 4. توصیه های تجربیات برتر در مورد نحوه استفاده اثربخش از پاداش های مالی
- 1.4 اصل شماره 1: عملکرد را به طور دقیق تعریف و اندازه گیری کنید
- 2.4 اصل شماره 2: پاداش ها را به عملکرد وابسته کنید
- 3.4. اصل شماره 3: به موقع به کارکنان پاداش بدهید
- 4.4 اصل شماره 4: عدالت را در سیستم پاداش حفظ کنید
- 5.4. اصل شماره 5: از پاداش های مالی و غیرمالی استفاده کنید
- 5. نتیجه گیری
Abstract
Monetary rewards can be a very powerful determinant of employee motivation and performance which, in turn, can lead to important returns in terms of firm-level performance. However, monetary rewards do not always lead to these desirable outcomes. We discuss in this installation of Human Performance what monetary rewards can and cannot do, and reasons why, in terms of improving employee performance. Also, we offer research-based recommendations including the following five general principles to guide the design of successful monetary reward systems: (1) define and measure performance accurately, (2) make rewards contingent on performance, (3) reward employees in a timely manner, (4) maintain justice in the reward system, and (5) use monetary and nonmonetary rewards. In addition, we offer specific research-based guidelines for implementing each of the five principles. In short, our article summarizes research-based findings and offers recommendations that will allow managers and other organizational decision makers to understand when and why monetary reward systems are likely to be successful in terms of enhancing employee motivation and performance.
Keywords: Compensation - Employee retention - Human Resource Management - Individual performance - MotivationConclusions
Monetary rewards can be a powerful influence on employee motivation and performance. However, monetary reward systems do not always live up to expectations. A likely reason is the much lamented science-practice gap in management and related fields (Cascio & Aguinis, 2008). In other words, although there is considerable empirical research on what monetary rewards can and cannot do in terms of improving individual performance, such research does not seem to have reached many managers and other organizational decision-makers. We relied on the available research results to distill five principles that, if followed, will allow organizations to take advantage of what monetary reward systems have to offer. However, the devil is in the details. Thus, we also offered research-based guidelines regarding the effective implementation of each of these five general principles. We hope that the adoption of our five principles, as well as their implementation using our specific guidelines, will allow organizations to improve their performance by addressing employees’ number one request: ‘‘Show me the money!’’