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Organization Behaviour Essay

4745 words - 19 pages

VOLUME-1, ISSUE-6 (September 2014)
ISSN: (2348-9766)


Madhuri Kshirsagar,

Dr. V. Y. Waghale,

Research Scholar

Dhanwate National College
Congress Nagar, Nagpur-440012
(Maharashtra) India

Employees lacking motivation can present a problem for all types of organizations, and there
can be far-reaching impacts when employee performance is down. The ability to foster a
motivating work environment is essential, and strategies must focus on how employee
satisfaction and performance levels are tied to motivation. There are several ways that
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International Research Journal of Management and Commerce (IRJMC)
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VOLUME-1, ISSUE-6 (September 2014)
ISSN: (2348-9766)
especially something that involves hard work and efforts. It thus must be borne in mind that a
highly motivated employee uses his potentials to the optimum level and makes goal-directed
efforts while raising the best level of efficiency towards the accomplishment of organizational
objectives, whereas the one who’s not motivated does not do so.
Managing reward is largely about managing expectations what employees expect from their
employers in return for their contribution and what employers expect from their employees in
return for their pay and the opportunity to work and develop their skills. Expectorations are built
into the employment relationship, the starting point of which, from the rewards point of view, is
an undertaking by an employee to provide effort and skill to the employer, in return for which
the employer provides the employee with a salary or a wage. The purpose of managing the
system of rewards within the organisation is to attract and retain the human resources the
organisation needs to achieve its objectives. To retain the services of employees and maintain a
high level of performance, it is necessary to increase their motivation and commitment. In effect
the organisation is aiming to bring about an alignment of organizational and individual
objectives when the spotlight is on reward management.

1.1 Incentives/Rewards:
“Incentive” may be defined as a stimulus or encouragement for grater action. When used in
terms of wage policies, it usually refers to additional remuneration paid to an employee, if the
work units produced by him exceed an established standard. Incentives are offered to employees
to encourage them to greater effort in production than would normally be expected.
Varma and Agarwal (1994) defined; rewards are the payments made to the employees as
compensation for the services rendered by them to the organisation. Compensation or
remuneration is what employees receive in exchange for their work in the enterprise, and
Criffeth, Hom (2001) defined that compensation is the benefits made to employees by employer
for attracting and retaining personnel in the organisation. Thus the concept of incentives /
rewards implies increased willingness or motivation to work.
Reward strategy is the deliberate utilization of the pay system as an essential integrating
mechanism through which the efforts of various sub units and individuals are directed towards
the achievement of an organisation strategic objective, subject to internal or external constraints.
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