Managing Employee Performance Essay

PROBLEM: A long-serving worker, at the top of his pay scale for the last twelve months, seems to be losing interest in his job. He is putting 75% effort into most activities, which still achieves satisfactory results, but his attitude is beginning to unsettle the team. Losing interest or low morale of X, a long serving worker, is a very serious problem of ABC Inc. A great number of studies are done to identify the determinants of low morale and losing interest. Many variables are found to be considerably related to indices of losing interest, the results appear to be unstable across situations and time.

The Way Incentives Work Every incentive program is based on a formula for enhancing motivation that engages four fundamental variables: effort, performance, outcomes, and satisfaction. In simpler words, ABC Inc. should provide its employees what they want, and employees will work hard to get it. Effort => Performance => Outcomes=> Satisfaction Conversely, the problem with most incentive programs like of ABC Inc. is that they centre exclusively on the submission of outcomes and overlook the three beliefs that are the key to making the motivation solution work: • Can one do it? Will outcomes be tied to one’s performance? • Will outcomes be satisfying to one? The first conviction compacts with the relationship between employee effort and performance. The second compacts with the relationship between performance and outcomes. And the third compacts with the relationship between outcomes and satisfaction. These three beliefs form the basis of the belief system of motivation and performance. Accepting that these beliefs are decisive preconditions for motivation helps to explain why incentive programs generally yield such lacklustre results like in case of ABC Inc.

Since employees do not always hold these beliefs to be true, attempts to improve motivation by using incentives cannot make the grade, even when the incentives are highly desirable ones. Types of Motivation Problems One cannot do it Motivation problem: Lack of confidence Associated feelings: Self-doubt Anxiety Frustration Outcomes are not tied to one’s performance Motivation problem: Lack of trust Associated feelings: Scepticism Disbelief Mistrust Outcomes will not be satisfying to one Motivation problem: Lack of satisfaction Associated feelings: Anger Rebelliousness Low Morale and Absenteeism

At ABC Inc. a major transformation attempt only makes difficult the situation. If any of three beliefs are shaky to begin with, organisational change at ABC Inc. can weaken them even further. The result is often serious motivation and performance problems, at a time when organisations can least afford them, and a resultant surge in the negative emotions associated with change. When an employee believes ‘one cannot do it’ for example, one may develop a lack of self-confidence and begin to experience many of the unpleasant feelings that go along with it: self-doubt, anxiety, and frustration.

About a year into the change effort, one manager portrayed the inner turmoil one went through by comparing the restructuring to building a ship at the same time one is trying to sail it. (Mele, 2003) Worker beliefs that ‘outcomes are not tied to one’s performance’ can also escort to noteworthy motivation problems, especially lack of trust. This is normally accompanied by feelings of scepticism or disbelief; precisely the emotions that another manager felt when one was told early on change effort that power would be allocated differently.

Employee beliefs that ‘outcomes will not be satisfying to one’ often escort to a third major problem, chronic dissatisfaction, and to feelings of anger, rebelliousness, low morale and absenteeism. (Miner, 2002) Like as the negative emotions allied with change can often go undetected, the motivation and performance problems that cause them frequently remain hidden and unresolved. Due to this, managers who lead change are sometimes frustrated in their efforts. They fail to realize that it is not enough to appeal to the intellect of their workers.

So managers must also win employees’ hearts in order to implement change successfully. The reason behind why are motivation problems so difficult to uncover is that employees are afraid to speak about them or even admit that they exist like at ABC Inc. Though most employees know when they have a motivation problem, many feel that acknowledging it is tantamount to admitting failure, and, naturally, they do not want to appear weak or incompetent to their manager. The belief system approach is practical method that can help manager at ABC Inc. esolve these problems effectively. It takes the guesswork out of the search for motivation problems and alerts managers to the three principal types: • Motivation problems caused by a lack of confidence. • Motivation problems caused by a lack of trust. • Motivation problems caused by a lack of satisfaction. Is Pay a Motivating Factor in a Working Organisation The pay and motivation controversy worries the dispute over the use of pay and reinforcement to motivate people’s performance and interest.

In business, managers repeatedly offer enticement to employees for exceptional performance. Over the past 30 years, a number of psychologists have questioned the wisdom of these practices. The concern is that pay undermines employee’s motivation and performance. If employees are paid more for doing an interesting task, the claim is that employees will come to like the task less and engage in it less once the pay are no longer forthcoming. The contention that pay undermines motivation rests on a body of experimental research from social psychology.

The negative effects of high pay occur under a circumscribed set of conditions and that, when appropriately arranged, pay can be used to enhance motivation and performance. The research on the topic indicates that pay can be used to increase motivation and performance on tasks that are of low initial interest. On high-interest tasks, positive effects are obtained when participants are verbally praised for their work and tangible pay are offered and explicitly tied to performance standards and success. The only negative effect occurs when tangible pay signifies failure or is only loosely tied to behaviour.

Negative effects of high pay can be easily prohibited and that managers can use pay effectively to motivate performance and interest. Although the negative effects of high pay are highly circumscribed, many researchers have fought against the use of pay. To understand this reluctance to use positive incentive systems, one points to the socio-historical context of the pay and motivation debate. Studies on negative effects of high pay were instigated at a time when many employees were apprehensive of science and technology, particularly as they applied to human behaviour.

A prominent view in the 1970s concerned employees as wilful and self-determined; a major goal was to seek self-actualization. Any external influences including the use of pay were seen as harmful to an employee’s psychological development. It is within this context that experiments on pay and motivation were conducted, and although the findings were weak, the research was interpreted as evidence for the harmful effects of pay and reinforcement. This view led to inertia in management. Cameron, 2002) The design programs that used positive reinforcement to instil habits and values, individuals involved in performance management were being told that doing nothing was better than using an incentive system. Conclusion Pay and reinforcement can be used to promote desired behaviour and, at the same time, maintain employees’ interest. So ABC Inc. should introduce monetary as well as some other perks related to his performance in order to keep his interest towards his job. This will facilitate organisation achieving its goals as X will perform with hard work with his team.