Background to the study

Employee performance simply is the target and goal achievement of an entity facilitated by the contributions – labour which is skilled or unskilled and possible suggestions to decisions or policies made by the entity the employee works for. That is to say, the extent to which an organization‟s objective (goals) are being achieved courtesy to the role played by the employee is what employee performance is all about. Consequently, employee performance include all of the employees efforts in terms of his/her commitment to work, punctuality, willingness to work extra hours, exerssion of innovation in the execution of task to mention but a few directed at goal achievement at effective cost.

However, this performance of employee which is desired by entities in both private and public sectors is a function of employee motivation. These motivations are broadly referred to as monetary and non-monetary incentives. It is a general belief that reward system seek to attract people to join an organization, to keep them coming to work and motivate them to perform to high levels (Puwanenthiren Pratheepkanth, 2011).

Evidently, both employers and employees do have their needs intertwined or dependent on each other. It is however mostly use one that the employees performance depends on the corresponding compensations, recognition and benefits. Studies have shown that organizations are increasingly realizing that they have to establish a blend or balance between the employee‟s contribution to the organization and the organization‟s contribution to the employee. Whereas, the compensation to the component of the rewards content is monetary and is mostly believed as major motivator of employees, no doubt, the role played by non-monetary incentives – promotions, flexible work hours, recognition, awards, healthcare, off-day, leave, free bus services to mention but a few in motivation employees cannot be relegated to the background.

Indeed, the environment in which an employee works, how he or she is made to contribute towards decision/policy making of the organization, un-biased promotion and the expectations of career advancement can greatly motivate an employee to perform or put in his or her best towards organizations goal/objective achievement.

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