Employee Motivation and Productivity
Like any other sphere of modern socio- industrial activities, banking too, is a potent and purposeful monetary- based media that nurses and nourishes the socio-economic growth of a developing country such as, the role it plays in present day commerce, trade and industry and undoubtedly constitutes an integral organ of overall development. Banking in fact is as primitive as the human society, for ever since man came to realize the importance of money as a medium of exchange; the necessity of a controlling or regulating agency or institute was naturally felt.
Perhaps it was the Babylonians who developed banking system as early as 2000 B. C. It is evident that temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy. Despite the classical origin, banking in its modern form and structure was started in the Great Britain, when many of the Lombardy merchants came to England in the 14th Century. MOTIVATION Motivation can be defined as a reason to do something, over here the case would be to provide en employee to perform better on his or her job. In a work environment there are three characteristics that affect the motivation of the employees.
Those three characteristics are 1) attitude, 2) expectancy and 3) harmony. All the companies respect their boundaries of their culture. Employee motivation is considered important when an organization is building relationships for better communication with their employees. (Robbins, 2000) The elements that are concerned with the methods of employee motivation are as follows 1) anticipated rewards, 2) participation, 3) recognition of effort and 4) communication. There are different ways that an employee of the company can be motivated.
They are rewards, compensation, goal-setting, management-by-objectives, incentives, self-fulfilling prophecy, empowerment and job enrichment. The motivation technique, which I consider the most effective in the banking industry, would be incentives. Incentives Mangers and the HR department can use incentives as tools to motivate employees to attain organizational goals and objectives because these are considered to be compensation approaches that reward specific outcomes of the employees. Incentive systems link compensation and performance by rewarding performance instead of seniority hours that have been worked by the employees.
Although incentives can be given to a work group or team but they are often reward individual behavior of an employee. Incentives especially executive incentives (for bankers) need to achieve a balance between short-term results and long-term objectives. Incentives must be matched to the needs of the executives. Young and middle aged executives are most likely to desire ‘cash bonuses to meet the needs of a growing family, whereas the older executives often seek to defer incentive compensation to build retirement savings.
(Werther & Davis, 1996) The best type of incentive for an executive would be stock options in the company. Stock option means that the executive has the right to purchase the company’s stock at a predetermined price. This price may be set at or below the market value. The intent is to give the executives an incentive to improve the company’s performance because there are some companies that actually require the executive to but some stock in the firm.
For example, some compensation experts believe that a top manager’s salary should be based upon company size, the complexity and importance of the job, profitability and return to shareholders of the company. The incentive system can be based on 2 types of incentives. They are 1) deferred stock incentive systems and 2) weighted incentive systems. (Werther & Davis 1996) References Robbins, S. P. (2000) ‘Organizational Behavior’. Prentice Hall Werther, W B. & Davis, K (1996), ‘Human Resources & Personnel Management’. McGraw-Hill