April 09, 2011

Rewards system

Only couple days left to LE PMA submission and I’m still trying to finish the essay. What bother me now is the about rewards system. I found that, an effective leader should emphasize to use intrinsic rewards approach that based on system-wide in order to foster workmanship and build strong relationship. However, this is not an easy approach since the current system work based on extrinsic rewards, which believed can make people within organization achieve the goals. Using extrinsic approach seems become effective way to motivate people to achieve certain goals, however level of performance will be limited to only achieve certain point. However, by using intrinsic approach, it will encourage people to perform beyond the expectation in the voluntary manner. Thus, I’m confused now. Which approach should I apply when I become a leader in organization that has already established system in the future?

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  1. That is a really interesting question Ponthy. . . . I was thinking about that as well. . . . Definitely the balance in the current system is in favour of extrincic awards. . . . .However this in my eyes seems very short term. You cannot always have better and better results. Variation has two sides. So what will happen when the bad results will come? Demotivation and frustration i think will be developed. I think that culture and if you wish a concept of Learning organization can be useful on that. People in an organizations should develop the culture of intrisic motivation and training is important on that. Thus i will apply philosophical semminars for my employees which will create a culture like that. Also the choice of whom you hire is important. If you as a leader want to build a department or even an organization that will be based on intrinsic motivation it will not be wise to hire people that you see they have no petentiality on that. I do not say they are wrong or useless but they will not feet in your system. But it will be a challenge to teach them without feeling guilty for their past. . . “In a way MBE did so to us…...........”

    09 Apr 2011, 20:43

  2. Also i would like to add something that i have noticed in TV. I was watching a horse-race (i am not fun of it but it was amazing how this people hit the horses to run faster, yes if i had the ability i would do the same to them). The point is that despite the fact that half and maybe more of the victory belongs to the horses the rider gets the glory and horse gets some food and water. . . . Isn’t that unfair? I see it as unfair. There is not reason to hit the horses for some people having fun. . . . . I do not see the point. . . .. . . This is the reward system in our days. . . . Other work other get the benefits. This is capitalism. . .

    09 Apr 2011, 20:55

  3. Sue

    I couldn’t agree more. I no longer watch the Grand National because of the cruelty to the horses. I went up Glastonbury Tor instead.

    10 Apr 2011, 00:00

  4. Hi Vagelis…

    Thanks for your comment.
    I agree that intrinsic should be foster in organization in order to achieve long-term goals. however, i have doubt about that. I think leaders should also use extrinsic rewards as well to capture short term objectives then build intrinsic rewards that based system-wide for long-term plan. thus, i believe it’s going to be very hard since we live in the current system that emphasize on extrinsic rewards approach. how can you “fight” against the main-stream system which embedded in people mind that their performance will be rewarded by something? it quite interesting subject, and i can’t wait to discuss with you in future when we have both in managerial position who deal with this kind of issue.

    10 Apr 2011, 22:12

  5. Isn’t it a matter of culture that the leader creates within the organization????? We will discuss it face to face. .. .BTW i still support the extrinsic awards as well but we should be careful how we apply it. The illusion of the system “Pay for what you get. get for what you pay” should be ended. .. . . . . . Extrinsic awards can be disasterous for organizations and it is a matter of how a leader utilize them. . . . . . I will go for equal raises for all the team members. . . . . . . . .

    10 Apr 2011, 22:16

  6. okay… i agree with your idea to have some balance in rewards system.. but i have doubt! if there are 10 members in that particular department and 3 of them are not productive and don’t deserve to receive extrinsic rewards compare to others that worked beyond expectation level. does this situation will create demotivation and frustration for them? imagine if the department is more than 100 people!

    12 Apr 2011, 03:14

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