Several years ago I was working for an organization that highly emphasized on reward system. When we talk about reward system we can refer to high wages, training, bonuses, benefits, compensation, and personal and professional growth opportunities. However, not all employers are capable to offer such high rewards; therefore, many organizations are choosing low cost, but efficient alternatives that will still motivate employees to excel (Heneman & Coyne, 2007). The reward my company used was “Employee of the Month” recognition. By the end of each month each all employees were evaluated based on the pre-established criteria such as providing the highest quality of service, making a personal effort to “go the extra mile” and treating each person professionally.
Employee of the month reward helped inspire every employee to work at their fullest potential (Heneman & Coyne, 2007). Our company had a set list of projects and tasks that had to be completed on daily basis. Also, we had briefings at the begging of each shift which were a big deal because it gave employees an opportunity to shine and show the level of teamwork, participation and motivation. Employees knew that they were observed; therefore, they were motivated to go extra mile when needed by working overtime or helping their teammates. The company was very successful the production was high and so did employees satisfaction.
I use to love when “Employee of the Month” was announced during our meetings because everybody worked hard and I knew that it could be me. During five years of employment I received two “Employee of the Month” and one “Appreciation” certificates of which I am proud. I used to love coming to work because I felt that I was part of something big and that my part of work was of value. The input and ideas that I gave at our meetings made me feel important and capable of performing my work.
That is exactly what Path-Goal Theory is all about. “Path-Goal Theory shows how leaders motivate subordinates to accomplish designated goals” (Northouse, 2013). The main goal of path-goal theory is to increase employee performance and satisfaction by focusing on employee’s motivation. It is based on expectancy theory; employee’s motivation increases when they believe their effort will result in a certain outcome or payoff and when subordinate feel that they are capable to accomplish certain task (Northouse, 2013). Well organized organizations understand the value of rewards system and can’t afford to ignore rewards programs that can give organization desirable business outcome. There could be different rewards strategies but the outcomes are always the same; high productivity, job satisfaction, and service quality (Heneman & Coyne, 2007).
Heneman, R., & Coyne, E. (2007). Implementing total rewards strategies. (pp. 1-54). Alexandria, VA: The Society for Human Resource Management.
Northouse, P.G. (2013). Leadership: Theory and Practice. Los Angeles: Sage Publications.