The Employee's Impact On Human Resource Management

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Introduction The concept of employee satisfaction has great impact on human resource management and compensation. Companies use different techniques to make happy and inspire their employees. Success of an organization in achieving its strategic objectives heavily relies on the motivation level of employees. All organizations, regardless of sector, size or industry require motivated workforce that ensures the competence, high organizational output and success of the organization. De-motivated employees are likely to put in little or no attempt in their jobs, make low quality work, mostly stay away from their workplace and even exit the organization if provided opportunity. Employees who are motivated to do their work are likely to be determinant,…show more content…
Intrinsic motivation can be thought of as internal thoughts or feelings that feed one's desire to achieve, perform or become involved in activities. Intrinsically motivated behaviors are those which are motivated by the underlying need for competence and self-esteem which may be performed in the absence of any apparent external stimulus. In contrast, extrinsic motivation is that which stems from the work environment external to the task, it is usually stimulated by external rewards. Thus financial reward influences extrinsic motivation, it has little impact on intrinsic motivation. Recognition is needed to enhance intrinsic motivation.…show more content…
Non financial recognition rewards consists of both intrinsic and extrinsic motivation incentives. Studies conducted by Peterson and Luthans show that non financial recognition initiatives aimed at strengthening employees intrinsic motivation have a positive impact on performance. Research by Arnolds and Venter also suggests that whereas financial and other tangible incentives such as pay, benefits and praise may be more motivating in the short term, in the long run, non financial incentives such as challenging and interesting tasks and various forms of genuine social reinforcers in the form of formal and informal organizational rewards are more motivating. Moreover, receiving extrinsic rewards only, may even result in a decrease in intrinsic motivation on future tasks.(6) The studies from MIT, the London School of Economics, Carnegie Mellon show that the monetary rewards offered by traditional incentive programs are not effective. Their findings confirm that it is intrinsic motivation, such as recognition, that engages employees. According to a Gallup study, companies that had higher-than-average employee engagement also had 27 percent higher profits, 50 percent higher sales, and 50 percent higher customer loyalty.(8)

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