Employee Compensation Industrial Management

Question: Describe about the Employee Compensation for Industrial Management? Answer: Introduction: Motivation is derived from the word motive. By the word motive it means needs, desires or wants that the individual expects from within. It is a complete procedure of stimulating the actions of the employees who are working in the organization is order to accomplish the goals. Employees working in the organization are motivated very frequently by their manager. This will help them to become more productive, more engaged and more interested in doing their work, so basically it is the job of the managers to motivate the employees to make them in doing their jobs well. Motivation-key to improvement in performance It is an old saying that a horse can be taken to the water but the horse cannot be forced to drink water. Same is the case with the human beings they will do only that work for which they are interested to do or it can be said that they are motivated to do the work. They must be motivated either by themselves or with the help of some external methods. Now the question is that whether the employees working in the organization are self-motivated or driven by external stimulus. If they are not self-motivated then be motivated. So now it becomes the duty of the manager to motivate the employees. So for motivation there can be some skill that can be learnt. This is very much essential for any business to run smoothly. Performance of the employees is considered to be a mixture of ability and motivation, therefore: Performance in job = function (f) x ability x motivation Ability depends upon education, experience as well as the training of the employees. Any improvement in the ability undertaken by the manager is a slow and a long process, whereas motivation can be improved quickly. Following are major strategies of motivation that can be used by the manager: Higher expectations from employees Maintaining discipline in the organization No biasness among the employees Satisfying the needs of the employees To set the goals effectively. The above stated strategies may vary from situation to situation in every organization. It is usually found that there is slight gap that exist between the actual state and desired state of the individual. The managers today are trying to reduce the gap by adopting different kind of strategies. Motivation is adopted by the motivator so that he can easily complete the work and can achieve the desired goals set by the manager. The manager can also carry on research in order to evaluate that what are the needs of the individual and how can they be motivated. it can be explained with this example, a famous gas company Minneapolis Gas Company that had 31,000 men and 13,000 women workers made a long research for a period of 20 years in order to evaluate that what are the desired of the employees that are working in their organization. This research gave them fruitful results and they came to know that both the men and women workers wanted that there should be security of their job for which they are working hard. Other than this there were other three factors that were found after the research: Advancement in the technology. Work type assigned to a particular worker. The company should be reliable and authentic. The detailed arguments against merit pay are as follows Rewards with the fear of punishment may lead to declining of performance and thus it will affect the intrinsic form of motivation. When a manager makes stress on the employee that it will get rewards from his work done then employee gets burdened and thus becomes least interested in its work. The amounts that are available for distribution are small so they cannot act an incentive. They have always been a matter of question in the merit pay schemes The requirements that are needed for success are difficult to achieve. Money as in itself will not lead to sustainable motivation. Rather the intrinsic motivation that is provided by the work itself will last longer. Every employee reacts differently to any forms of motivation. Thus it cannot be assumed that money will motivate every employee equally or not. These merit pay schemes can create dissatisfaction if they are unfair, inadequate or not managed properly. The policy of carrot and stick :- the best motivational system for an organization: There is a traditional framework as well as an argument for this above stated myth. It consists of telling the employees two particular statements: If you will do this particular work, then you will get the bonus or incentive for the same. If you will not do this particular work then you might get an unsatisfactory appraisal or you may also get fired from the company. The author of the book The Truth about Managing People, Stephen P.Robbins says that the system of rewards has nothing to do with the performance of the employees. A good and a hard working individual will surely give out its best performance, so it is nothing to do with the method of paying rewards only to that employee who will complete the work on time. A worker is more productive in his work only when he is happy: According to this particular theory an employee who gets flexibility in his working hours, facilities of workout and generous amount of packages as benefits are the happiest employees in an organization. All these are considered to be excellent benefits and they have nothing to do with incentives that an employee gets for better performance. So it is basically a myth in the minds of the people in context of motivating the employees. Conclusion: Motivation is a process that depends upon the needs related to growth of the employees. This motivational process gives benefits over a period of time in the organization and hence it acts an internal engine for the whole organization. This is because the personal growth acts as a final reward in the process of motivation. An employee can be motivated by giving them more challenging work and with this the employees can accept the sense of responsibility. The employees working in the organization acts as the best asset for the company. If the employees are not motivated then it will affect the productivity of the organization to a great extent. Reference: Gerhart, B., Bretz Jr, R. D. (1994).Employee compensation. Wiley, New York. Longenecker, C. 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