Question

The ineffectiveness of incentive scheme does not work by rewards ignore reasons. Discuss

(300 words)

Answer 1

In todays business environment, most incentive plans come along with a reward program linked to performance. This emanates from the assumption that a job would be better done if some incentive over and above the normal remuneration is provided. This reward linked incentive has become a common practice through out the world but there are some evidence which support an opposite view.

Many studies done in workplaces and social groups suggest that many times rewards dent the task they are expected to enhance. Some research has shown that rewards only promote temporary compliance. And they fail to bring any lasting change in attitude and behaviour. Here they draw a similarity with punishments. Mostly behaviour would be modulated to achieve the performance for reward and as soon as reward is achieved, behaviour gets back to old shape. Rewards do not bring a lasting commitment to perform.

A meta- study by Richard A. Guzzo (1980) comparing 98 studies initially suggested positive correlation between productivity and reward but the large variation among the studies on statistical analysis reflected no significant impact or rewards on performance.

Rewards fail because of many reasons. Some are listed below:

1. The wage / incentive is not the first motivator for many employees. It may be some other aspect, interest or concern which they care about more.
2. There is a perception that many mangers have used rewards as way of manipulation and which ultimately create defiance.
3. When someone get a reward, others feel lost and this may hamper or even destroy relationships in an organization, which can be very detrimental to the organizational wellbeing.
4. Reward are designed without concern for one’s interests. An employee may work for rewards but it may not inculcate a long-lasting interest in the person for the job.