Effectiveness of Monetary Reward System on the Employee’s Performance Level

2021 ◽  
Vol 9 (1) ◽  
pp. 50-53
Author(s):  
R Mithunmita ◽  
M John Britto
Keyword(s):  
Positive Impact ◽  
Reward System ◽  
Performance Level ◽  
Monetary Reward ◽  
Monetary Rewards ◽  
Commitment Level

Monetary rewards can be defined as money or hard cash rewards given to the employees for their extraordinary work or for the attainment of goals of the organisation. The main purpose of the study is to see how monetary rewards have an effect on the performance level of the employees and how it motivates them. The aim of the study is to find out whether the employees will increase their work or not. This study will help the employers understand which combination of rewards can boost the commitment level of the employees towards the company and it will help the employees find out whether rewards are given fairly them and whether all the employees are treated in the same way. From the results collected from the employees it can be said that monetary rewards have positive impact in the organisation and it makes an employee more loyal towards the organisation.

scholarly journals Effect of reward system among health care workers performance: a case study of university of Calabar teaching hospital Calabar, Nigeria

2015 ◽  
Vol 4 (3) ◽  
pp. 45
Author(s):  
Oyira Emilia James ◽  
Regina Ella ◽  
Nkamare S.E ◽  
Felicia E. Lukpata ◽  
Sylvia Lazarus Uwa ◽  
...  
Keyword(s):  
Health Care ◽  
Teaching Hospital ◽  
Health Care Workers ◽  
Positive Impact ◽  
Secondary Data ◽  
Reward System ◽  
Relevant Information ◽  
Statistical Tool ◽  
Monetary Rewards ◽  
Care Workers

The study investigated the effect of reward system on health care workers performance in Teaching Hospital. It examined the relationship among monetary and non-monetary rewards and employees’ performance in University of Calabar Teaching Hospital (UCTH). Desk survey was used in gathering relevant information. Primary sources were questionnaire, observation and interview, while secondary data were gathered from internet, textbooks, journals and libraries. Chi-square statistical tool was used and the findings revealed the monetary reward had a positive impact on employees’ performance while non-monetary rewards had a negative effect on employees’ performance. The study recommended that management of UCTH should boost the morale of their employees through fair and equitable reward system. The study further recommended that management should be effective with monetary rewards like bonuses and fringe benefits to encourage the workers improve performance.

How adolescents and adults translate motivational value to action: Age-related shifts in strategic physical effort exertion for monetary rewards

2019 ◽  
Author(s):  
Alexandra M Rodman ◽  
Katherine Powers ◽  
Catherine Insel ◽  
Erik K Kastman ◽  
Katherine Kabotyanski ◽  
...  
Keyword(s):  
Young Adults ◽  
Early Adulthood ◽  
Theoretical Models ◽  
Incentive Motivation ◽  
Reward Processing ◽  
Monetary Reward ◽  
Physical Effort ◽  
Monetary Rewards ◽  
Age Related ◽  
Adolescents And Adults

Adults titrate the degree of physical effort they are willing to expend according to the magnitude of reward they expect to obtain, a process guided by incentive motivation. However, it remains unclear whether adolescents, who are undergoing normative developmental changes in cognitive and reward processing, translate incentive motivation into action in a way that is similarly tuned to reward value and economical in effort utilization. The present study adapted a classic physical effort paradigm to quantify age-related changes in motivation-based and strategic markers of effort exertion for monetary rewards from adolescence to early adulthood. One hundred and three participants aged 12-23 years completed a task that involved exerting low or high amounts of physical effort, in the form of a hand grip, to earn low or high amounts of money. Adolescents and young adults exhibited highly similar incentive-modulated effort for reward according to measures of peak grip force and speed, suggesting that motivation for monetary reward is consistent across age. However, young adults expended energy more economically and strategically: whereas adolescents were prone to exert excess physical effort beyond what was required to earn reward, young adults were more likely to strategically prepare before each grip phase and conserve energy by opting out of low reward trials. This work extends theoretical models of development of incentive-driven behavior by demonstrating that layered on similarity in motivational value for monetary reward, there are important differences in the way behavior is flexibly adjusted in the presence of reward from adolescence to young adulthood.

scholarly journals High monetary reward rates and caloric rewards decrease temporal persistence

2017 ◽  
Vol 284 (1849) ◽  
pp. 20162759 ◽  
Author(s):  
Bowen J. Fung ◽  
Stefan Bode ◽  
Carsten Murawski
Keyword(s):  
Theoretical Models ◽  
Monetary Reward ◽  
Positive Energy ◽  
Opportunity Costs ◽  
Trade Off ◽  
Reward Rate ◽  
Potential Value ◽  
Monetary Rewards ◽  
Positive Energy Balance ◽  
Temporal Persistence

Temporal persistence refers to an individual's capacity to wait for future rewards, while forgoing possible alternatives. This requires a trade-off between the potential value of delayed rewards and opportunity costs, and is relevant to many real-world decisions, such as dieting. Theoretical models have previously suggested that high monetary reward rates, or positive energy balance, may result in decreased temporal persistence. In our study, 50 fasted participants engaged in a temporal persistence task, incentivised with monetary rewards. In alternating blocks of this task, rewards were delivered at delays drawn randomly from distributions with either a lower or higher maximum reward rate. During some blocks participants received either a caloric drink or water. We used survival analysis to estimate participants' probability of quitting conditional on the delay distribution and the consumed liquid. Participants had a higher probability of quitting in blocks with the higher reward rate. Furthermore, participants who consumed the caloric drink had a higher probability of quitting than those who consumed water. Our results support the predictions from the theoretical models, and importantly, suggest that both higher monetary reward rates and physiologically relevant rewards can decrease temporal persistence, which is a crucial determinant for survival in many species.

Organizational success, human resources practices and exploration–exploitation learning

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mercedes Ubeda-Garcia ◽  
Enrique Claver-Cortés ◽  
Bartolome Marco-Lajara ◽  
Francisco Garcia-Lillo ◽  
Patrocinio Zaragoza-Sáez
Keyword(s):  
Organizational Performance ◽  
Positive Impact ◽  
Reward System ◽  
Positive Influence ◽  
Exploratory Learning ◽  
Content Type ◽  
Positive Effects ◽  
Hrm Practices ◽  
Exploitative Learning ◽  
Learning Types

Purpose The purpose of this paper is twofold: first, to analyze which policies of human resource management (HRM) contribute to exploratory learning and which to exploitation learning; and second, to determine the influence of the two types of learning on organizational performance. Design/methodology/approach The research hypotheses are tested by partial least squares with data from a sample of 100 Spanish hotels. Findings The results confirm that, in order of importance, selective staffing, comprehensive training and an equitable reward system lead to exploratory learning. Exploitative learning seems to be fundamentally driven by comprehensive training and an equitable reward system (but in a different way than with exploratory learning). Finally, both types of learning have a positive impact on performance. Practical implications Both exploratory and exploitative learning result from HRM practices. To maintain performance expectations managers should develop both learning types, which entails the utilization of the best HRM practices. Originality/value This study presents empirical evidence around the findings of other studies (Laursen and Foss, 2014; Minbaeva, 2013) which call for further research into whether strategic HRM configurations have positive effects on the two learning types. The results find some practices that have a positive effect in both cases, but with different intensities in their explanations. This finding reveals the need for more detailed exploration around which combinations of HRM practices, in terms of exploratory vs exploitative learning, are advisable for organizations. The study also finds that the two learning types have a positive influence on organizational performance.

The impact of monetary rewards for online reviews

2019 ◽  
Vol 31 (5) ◽  
pp. 1486-1515 ◽  
Author(s):  
Yongrui Duan ◽  
Chen Chen ◽  
Jiazhen Huo
Keyword(s):  
Analytical Framework ◽  
Online Reviews ◽  
Monetary Reward ◽  
Product Reviews ◽  
Purchase Decisions ◽  
Content Type ◽  
Second Stage ◽  
Monetary Rewards ◽  
Stage 1 ◽  
The Impact

Purpose To encourage buyers to contribute product reviews, some online sellers offer monetary rewards. The purpose of this paper is to investigate the impact of monetary rewards on buyers’ purchase decisions and review contributions, as well as the impact on the seller’s price decisions and profit. Design/methodology/approach The authors consider an online seller in a two-stage setting. Prior to Stage 1, the profit-maximizing seller sets the price and decides whether to offer a monetary reward secretly to motivate online reviews. Then, a continuum of buyers arrives and makes purchase decisions at the beginning of each stage. First-stage buyers may contribute reviews if they are satisfied, which will affect demand in the second stage. Using this analytical framework, the authors analyze the impact of monetary rewards. Findings If the monetary reward is small, it decreases the seller’s profit and fails to generate more reviews. It also increases price, leading to a decline in total demand. Thus, when the reward is lower than a certain threshold, all buyers are worse off. Only when the reward exceeds the threshold are buyers who contribute reviews better off. Profit and total demand both increase in review quality, while the price may either increase or decrease in it. Originality/value To the best of the authors’ knowledge, this paper is the first to analyze theoretically the impact of monetary rewards on buyers’ purchase decisions, review contributions and on online sellers’ decisions.

scholarly journals Reactivity of the Reward System in Artists During Acceptance and Rejection of Monetary Rewards

2018 ◽  
Vol 30 (2) ◽  
pp. 172-178
Author(s):  
Roberto Goya-Maldonado ◽  
Maria Keil ◽  
Katja Brodmann ◽  
Oliver Gruber
Keyword(s):  
Reward System ◽  
Monetary Rewards

The Psychology Of Marginal Utility

2021 ◽  
Author(s):  
Xilin Li ◽  
Christopher K Hsee
Keyword(s):  
Rational Choice ◽  
Marginal Utility ◽  
Current Level ◽  
Monetary Reward ◽  
Monetary Rewards ◽  
Series Of Experiments ◽  
Diminishing Marginal Utility ◽  
Sensitization Effect

Abstract That wealth has diminishing marginal utility is a fact of life, and that people be sensitive to their current level of wealth when deciding whether to pursue additional wealth is a requirement of rational choice. A series of experiments, spanning diverse contexts, reveal marginal-utility neglect—that people are rather insensitive to their current wealth when deciding how much effort to expend to acquire a monetary reward (e.g., how long to walk to claim a voucher). Moreover, the experiments demonstrate that a marginal-utility-prompting manipulation, which prompts people to consider their current wealth and their need for the reward given their current wealth, produces a significant sensitization effect—making financially richer (vs. less rich) individuals less (vs. more) willing to seek the reward. This manipulation is more effective than either prompting people to consider their current wealth alone or consider their need for the reward alone, suggesting that marginal-utility prompting does not merely draw people’s attention to their current wealth or merely draw their attention to their need for the reward, but links the two elements. This research elucidates the psychology of marginal utility and yields implications beyond the pursuit of monetary rewards.

PAYING FOR LEGITIMACY? THE SIGNALLING EFFECT OF MONETARY REWARDS IN INNOVATION CONTESTS

2020 ◽  
pp. 2150044
Author(s):  
CHRISTOPH IHL ◽  
ALEXANDER VOSSEN
Keyword(s):  
User Participation ◽  
Monetary Reward ◽  
User Engagement ◽  
Willingness To Participate ◽  
Monetary Rewards ◽  
Social Judgement ◽  
Innovation Contest

Monetary rewards have become widely used to compensate user engagement in innovation contests. Building on literature on social judgement of organisations, we provide evidence on another important effect of monetary rewards in innovation contests, namely a signalling effect that may either enhance or lower a contest host’s legitimacy and subsequently users’ willingness to participate in the contest. Along three studies, we show that the signalling effect is especially beneficial for the innovation contest purposes that are incongruent with the host’s organisational stereotype, i.e., in cases where she lacks specific organisational traits that constitute users’ perception of organisational legitimacy. Offering a higher monetary reward in such a scenario allows hosts to overcome a lack of legitimacy and consequently foster user participation.

scholarly journals Monetary and non-monetary rewards reduce attentional capture by emotional distractors

2020 ◽  
Author(s):  
AT Walsh ◽  
David Podhortzer Carmel ◽  
David Harper ◽  
P Bolitho ◽  
Georgina Grimshaw
Keyword(s):  
Attentional Capture ◽  
Cognitive Processes ◽  
Attentional Control ◽  
Monetary Reward ◽  
Control Mechanisms ◽  
Emotional Stimuli ◽  
Letter Identification ◽  
Identification Task ◽  
Monetary Rewards ◽  
Accurate Performance

© 2020 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. Irrelevant emotional stimuli often capture attention, disrupting ongoing cognitive processes. In two experiments, we examined whether availability of rewards (monetary and non-monetary) can prevent this attentional capture. Participants completed a central letter identification task while attempting to ignore negative, positive, and neutral distractor images that appeared above or below the targets on 25% of trials. Distraction was indexed by slowing on distractor-present trials. Half the participants completed the task with no performance-contingent reward, while the other half earned points for fast and accurate performance. In Experiment 1, points translated into monetary reward, but in Experiment 2, points had no monetary value. In both experiments, reward reduced capture by emotional distractors, showing that even non-monetary reward can aid attentional control. These findings suggest that motivation encourages use of effective cognitive control mechanisms that effectively prevent attentional capture, even when distractors are emotional.

scholarly journals Intrinsic Value of Incentives Compared To Salaries: Can Organization Stop Paying Salaries?

2021 ◽  
Author(s):  
Valliappan Raju
Keyword(s):  
Multivariate Analysis ◽  
Mixed Mode ◽  
Structural Model ◽  
Intrinsic Value ◽  
Reward System ◽  
Measurement Model ◽  
Monetary Rewards ◽  
Mode Method ◽  
The Right ◽  
Ideal Practice

Abstract This research weighs significantly on challenging the present practice of compensation and rewards. Traditionally or conventionally, the organization reciprocates the gratitude to their employees in monetary terms. Non-monetary rewards being an exclusive section, it is not discussed in this research paper. Among the direct rewards, whether the companies should practice compensating their employees a fixed salary or pay only incentives for the tasks that are achieved? this question may not be welcomed by any employee as it touches the sensitive quotient. Nevertheless, organizations need to understand the right practice in the right era by implementing an intelligent framework. Equity Theory developed by Adams is laid as a foundation to encounter the present unfair reward system. Concurrent mixed-mode method research is done with 162 respondents (quantitative) and 15 respondents (qualitative). Multivariate analysis using SmartPLS 3.3.3 is executed to assess the measurement model and structural model to analyze the covariance between the constructs. The outcome of research claims that it is an ideal practice to implement task-based incentives in organizations rather than paying fixed salaries irrespective of the size or productivity of companies.

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