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Final Paper Gregory Hilgendorf Organizational Behavior BUS 7000 Jennifer Schoenwetter August 18, 2012

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Abstract The following paper is discussion of non-monetary and monetary rewards in the workplace. That it is critical that employers use an effective rewards system to encourage and reward employees for behaviors that they are able to exhort. Employers must find ways to encourage their employees to be more effective and happy with their work. The most effective way to fester and promote better working environment and to have employee who will work harder to get their job completed with speed and accuracy would depend on the reward system that their employers offer them.

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Rewards and Recogintion in Today's Global Economy

In today's dynamic global environment, it is important that businesses must constantly have the adaptability for their strategies and goals. That through the organizational upheaval of mergers and acquisitions with the rapid evolution of productivity tools and technologies, the most critical but overlooked dimension of this process of renewal would be the impact of organizational change on how to reward and motivate their employees. Management would must ensure that their systems of reward and recognition are carefully aligned with overall strategic and values and goals of the organization. That if these systems misaligned with the objectives can result in behaviors not anticipated and desired by management it is critical that the type of rewards and recognition have direct costs that are associated with them, such as rewards that are materialistic. There are other types of rewards and recognition could be less tangible, but effective. That these non-monetary rewards include formal and informal acknowledgment, and job enrichment activities and duties of the employees. The role of rewarding employees is the oldest and most widely accepted way of improving worker moral and performance (2013). That the act of reward is something that increases the frequency of an employee action, this ensures that employers are able to this will ensure that the employer is able to encourage their employees to improve their performance. The type of rewards that the employees receive from their employer will have various levels of effectiveness. That in todays competitive global market has produced flatter, more responsive organizations requiring employees to use better judgment and initiative to a much greater extent. In addition, management is looking to find ways to give their work force more duties as they try to optimize their workforce. Moreover, younger workers have different expectations when it comes to work versus their parents (Thomas, 2009). This reason behind this would be younger workers are raised during an era of rapid technological changes, and faster access to data, and

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respond to work that is meaningful allowing them to learn latest skills, and they find their own way of accomplishing tasks (Thomas, 2009). Management must be able to look at the various rewards that they offer their employees that it can be broken down into two groups extrinsic and intrinsic. Extrinsic rewards are those that management offers tangible rewards that are given to their employees. Some examples of these would be pay raises, bonuses, and benefits. In addition, they are external to the work itself and other people control their size and whether or not they are granted. In contrast, intrinsic rewards are psychological rewards that employees get from doing meaningful work and performing it well (2013). Extrinsic and other monetary rewards have a play a dominate role in earlier eras, when work was more routine, bureaucratic, and when complying with the regulations was paramount. The work that these individuals often were provided with minimal intrinsic rewards, and therefore the employees value extrinsic rewards as the only motivational tool that was used within the organization. These are popular among employers because they are able to align the money and other rewards with the goals of the organization and the employees (2013). Employees' views on money vary because some would view money as a status symbol and prestige. Others could view it as a source of safety, or some could view it as a necessary evil because they want more than they need. This can be viewed as a tool since it allows individuals the ability to secure goods and services and it can be viewed as a never ending desire to acquire more because of the addictive nature of money (2013). Furthermore there is deep motivational effect that money has because of the inherent and symbolic value because of amount of goods and services that employees can secure (2013). This is often true of employees who have higher earning pay tend to have higher job performance because they perceived themselves as being highly valued within their organization (2013).

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Employees have social distinctions which are consistent with the employee's internal drive to acquire more, leading to increased performance. This type of competitive can improve the organization because employees are striving to acquire more wealth which is based on their performance, but they also compete against their co-workers. This can cause employees who under-perform to feel jealous and hate those employees who are high producers. Furthermore, money is much more than an exchange between employers and employees, it full fills a variety of needs and emotions and that shapes a person's self-concept (2013). Furthermore, management must also be able to determine which reward system that they want in place that will ensure continue success with their employees. Management must also understand the nature of their employees work, who is asked to by management to self managed by using their intelligence and experience to direct their work activities while working towards the organizational goals. Employees find ways by adding value, because they must be able to be innovative, using a variety of different tactics when trying to meet the consumers needs (Thomas, 2009). In order for self management to be successful the following factors come in play, committing themselves to a meaningful purpose, determine the most effective way of resolving the issues, and the person is doing the actives is knowledgeable (Thomas, 2009). In addition, management must be able to follow critical steps requiring their employees to make judgments. That these judgments must have meaningfulness of their purpose, a degree of choice, competence of their performance, and progress that is being made toward the objectives and goals of the organization. Judgments done by management are keys in determining their employees values and effectiveness of their efforts and contributions they are making.

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When there is something positive, employees will make judgments that are associated with a positive emotional charges. These charges have intrinsic rewards that are associated with them that employees work towards. These rewards act as ways of reinforcing employees to actively self-manage and are more engaged in the work that they do on a daily basis (Thomas, 2009). Intrinsic rewards can also be broken down into four different descriptions that employee's view. The first, would be a sense of meaningfulness, these involves the importance of purpose they are trying to accomplish, and they level of worth in the organization (Thomas, 2009). Second, would be a sense of choice this will allow employees to determine how they will accomplish the task that they have been assigned. In addition, they will give the employees a sense of ownership over the work that they are assigned to do (Thomas, 2009).Third, employees would have a sense of competence, this ensures that employees have a feeling that they are competent in the work that they have been assigned to do. When employees get appraised by their employees for meeting their goals, and producing high-level work, that employees will have a sense of satisfaction, pride, and artistry on how well they handle these activities (Thomas, 2009). Fourth, employees will have a sense of progress. Employees will put in the effort of tracking their accomplishing something. This will will also ensure that there is convincing signs that things are working out, giving employees the confidence in the choices that they have done and confidence in the choices that they will make in the future (Thomas, 2009). This is critical to understand the

impact of intrinsic rewards have have on employees. Those who have high rewards levels are able to demonstrate higher levels of concentration and receive higher evaluations from their employers (Thomas, 2009). These levels of rewards are as predictors to level of employee retention. That those who have high levels of retention are those who are energized and capable of self-managing themselves versus those how have low levels are more than likely to feel displaced with the duties that they are assigned to do and require more management intervention

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(Thomas, 2009). Furthermore, employees who have high levels of intrinsic rewards speak highly of the organization's products and services to friends and family. This is also an important source of motivation for employees. Employees with high reward levels experience more positive feelings than negative feelings. In addition, employees can experience lower stress and increased levels of job satisfaction, and have a sense that they are developing professionally (Thomas, 2009). The culture of any organization must have an effective reward system in place in order to build a culture that supports high levels of engagement and intrinsic rewards. They would need to have rewards that have meaningful purpose, that this involves human resource department and upper management. That this need to be meaningful with purpose involving more than profit, but taping into the organizations effort to earn a profit (Thomas, 2009). That these contributions also leads to value that drives the self mangement of the employees. Management must have the ability to recognize the role of intrinsic rewards and their own internal motivation of themselves and their employees. By doing this it will lead to developing a culture of engagement that incorporates training centered around intrinsic motivation and employee engagement into management development programs (Thomas, 2009). This is done when managers are in touch with their own their own intrinsic rewards and and learning who to support the intrinsic rewards of their employees (Thomas, 2009). Another facet requires management to convey the same message to down, this will allow employees to see what the organization stands for doing work that matters and ensuring that it is down well. That management must underline the importance of the contributions done by their employees. In order to have an overall effective approach that management must be able to target every employee, by doing this it supports a culture of high engagement. In order to look at the effectiveness of the intrinsic reward in the organization, that

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management must have a ways off measure the effectiveness. This will show managements the level of engagement in your organization and allow you to recognize improvement. The use of non-monetary rewards and recognition used by management can be a powerful and motivating tool that can keep employees engaged, improve their satisfaction, and help increase their morale (Keller 1999). Furthermore there is a positive effect that can be seen with organizations that are able to retain high performing employees. That this key that management is able to do this successful by having a reward system that is aligned to organizational goals and objectives, failures to do this would result in disconnect among employer and employee (Allen and Helms 2002). One example of this would be when an

organization relies on a brand development campaign that aligns to rewards to create an environment of innovation and trend setters that are able to add value to their products. It is important that management finds offers a variety of ways to reward desired performance and ensures the likelihood those employees would be able to increase the likelihood that the employee would be able to repeat the same actions (Zigon, 1998). In addition, the employee would be able to continue to improve, and do it more frequently that it would have been without interventions as long as they have be condition to do so. Furthermore, management most has the flexibility and to offer rewards at various cost levels to find the rewards that are align with the internal motivation of their employees. That in order to make sure that the rewards is producing the effect that management is looking for, that they must be able to get to know their employees and know their preferences (Zigon, 1998). There is evidence that shows that non-monetary recognition are an important factor when retaining employees and improving performance. Some firms are able to do this by offering their employees a variety of perks such as days off, in house medical facilities. Firms also find ways to keep outstanding employees in a smaller pool of highly qualified employees, that companies like

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Walt Disney have collected data and has documented the success of employee recognition programs (Lynch 2003). The most effective non-monetary rewards are the most effective would be employee recognition. The rational is that the type of recognition employees appreciate most is to be recognized by those who they work for. In addition, those employees felt that it was critical that they are able to receive appraisal and recognition for the work that they have done (Nelson 2004). In addition, most people value recognition that is genuine and timely matter. Furthermore, the importance of regular expression of recognition and appraisal done by management increases the likelihood those employees are able to reach their personal and company goals (Allen and Helms 2002). Management must also able to provide their employees developmental opportunities, such as working on special projects, or being assign them additional task. This can be a powerful tool since employees who are part of special projects seem to believe that management values their work and ethic, and they also feel that they are gaining new skills and experiences. Management also demonstrates high levels of trust in the abilities of their employees, and adds variety to their employees' work. Furthermore, management can also have other tools such as performance production evaluation and other developmental plans to help identify strong candidates for developmental opportunities. It is important that management finds offers a variety of ways to reward desired performance and ensures the likelihood those employees would be able to increase the likelihood that the employee would be able to repeat the same actions (Zigon, 1998). In addition, the employee would be able to continue to improve, and do it more frequently that it would have been without interventions as long as they have be condition to do so. Furthermore, management most has the flexibility and to offer rewards at various cost levels to find the rewards that are align with the internal motivation of their employees. That in

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order to make sure that the rewards is producing the effect that management is looking for, that they must be able to get to know their employees and know their preferences (Zigon, 1998). These principles can be seen in an organization such as the one that I work at, TITTechnical Institute, who has a history of educating individuals. The company hires over five thousands employees at its one hundred forty four campus throughout the nation and have thousands of students who attend those locations. Upper management at the corporate levels has a variety of rewards are used to retain key talent. They do this by offering discounted tuition and tutition reimbursement programs to employees, these allows the company to offer affordable tuition to their employees as well as furthering the skill set of their employees. This would provide the company with a competitive advantage because with the additional education that their employees receive, allows for the company to have an highly skilled and educational workforce. In addition, the company offers stock option plans for their employees, the amount is based on tenure and what role the employee has in the organization. Even though this is the another extrinsic award, this is the company's attempt to retaining employees, and encourage the employees to stay longer with the organization. The company also offers a variety of health and wellness benefits and programs for their employee. The reasoning behind this encourage employees to take step to have healthier and active lifestyle, and reduces the amount of absenteeism caused by illness related to poor health and poor diet. Without this in place the company would lose thousand to millions of dollars in productivity, which can be determential for any organization to trying to find ways to recouple those losses. The company also rewards employees who go above and beyond the normal duties, to receive recognition throughout the organization and have articles that they featured on the company's employee portal. This is provides fellow employees motivation to make the strives to be featured and do what they can to

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give themselves and their campuses recognition. The company will try to find new ways of giving their employees more in the future without impacting the organization's bottom dollar. Employees are more motivated to higher levels of job performance when they have received positive recognition from their peers and direct supervisors (Keller 1999). Management must be able to use a creative approach when developing a rewards and recognition system for their employees. That they must develop a system that is aligned with their employees needs and organizational goals and objectives. Non-monetary rewards have a greater impact that allows for the reinforcement of positive behaviors and employee performance and performance increase due to improved employee morale. That rewards system that has a focal point of reward and recognition are inexpensive to give, but are perceived by their employees and peers as priceless to receive. Intrinsic rewards allow for a strong bond to exist between the employer and employees, which allows for employees to make and effective contributions that have meaningful purposes. Management must not underestimate these rewards because they can not to use financial rewards as key factors to motivating people. They must utilize a rewards system that focuses on intrinsic rewards in the workplace to ensure future success in the organization.

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Allen, R. & Helms, M., (Fall 2002). Employee Perceptions of Relationships Between Strategy Rewards and Organizational Performance. Journal of Business Strategies. Retrieved from: http://www.questia.com/googleScholar.qst?docId=5000638773 Dunham, K., (December 16, 2003). Career Journal: Companies Offer Spa Days, Gifts to Reward, Retain Employees. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB107153030472527700.html Keller, J. (1999). Motivational Systems. In H.D. Stolovitch & E. J. Keeps, (Eds.), Handbook of Human Performance Technology. San Francisco: Jossey-Bass Pfeiffer. Keith, T. (2009.) The Four Intrinsic Rewards That Drive Employee Engagement. Retrieved from
http://www.iveybusinessjournal.com/topics/the-workplace/the-four-intrinsic-rewards-that-drive-employee-engagement

Lynch, L., (December 2003). Keeping The Best: The Difference Between Retaining and Losing Top Staff Talent is Leadership. Association Management, 55 (13). Retrieved from
http://www.thefreelibrary.com/Keeping+the+best%3A+the+difference+between+retaining+and+losing+top...-a0111737821

Nelson, B., (January 2004). Everything You Thought You Knew About Recognition is Wrong. Workplace Management. Retrieved fromhttp://www.workforce.com/article/20040127/NEWS02/301279998 Thomas, Kenneth, K. T. (December 1, 2009). The Four Intrinsic Rewards That Drive Employee Engagement. Retrieved from http://www.iveybusinessjournal.com/topics Zigon, J., (1998). Rewards and Performance Incentives. Retrieved from http://onlinelibrary.wiley.com/doi/10.1002/pfi.4160331003/abstract McShane, S. L. & Von Glinow, M. (2012). Organizational behavior (6th ed.). New York, NY: McGraw Hill.