Non-Monetary Reward and Recognition and Team- Based

Non-Monetary Reward and Recognition and Team- Based Incentives

It can be assumed that in any organization, the success of the Performance Management System depends on the ways in which the performance has been linked with the various values and the missions and the vision, and in the strategic objective of the entire organization. The manager or the leader of the department or of the Project Team that has been given the responsibility of designing the monetary award system within the organization, and with a certain limited control over it, must keep in mind the several most important key processes that would be utilized for designing and implementing an effective and an efficient performance management system. Therefore, it is imperative that he remember that there are three important levels of goals within any organization, and these are: organizational, team level, and at an individual level. (ECS, HR and CM: Performance Management)

All measures that are taken for the development of the designing of the non-monetary reward system must therefore be based at the three levels outlined, upon which the different measures to be taken can be determined. Furthermore, at each level, there exist goals that have different dimensions, and the creation and the development of an integrated set of measures would mean that there must also be a perfect alignment of the several different goals, which may be either team goals, or individual goals, or organizational goals. When at the organizational level, there can be several differential goals, which depend on what exactly the organization values the most. The first dimension in this goal is the 'people dimension', which means that the employees of an organization veritably become the most important part of the organization. This type of organization would also give the most amount of importance to the customer, and all the customer's varied preferences would be taken into account.

The third goal within an organization would inevitably be the 'share holder value', wherein the shareholder dimension would be taken into account. This dimension within a company would mean that that company would be constantly striving to improve conditions, and also to improve the profits of the company, as well as increase share prices, and concentrate on the growth of the company. When taken at the teamwork level of the framework of the organization, there may be in existence the phenomenon of differentiated goals for the various departments within the company, like for example, the marketing, the product development, the purchase and for the marketing departments. When taken at the individual level, whatever measures are adopted for the improvement of the organization would more often than not be based on the various key result areas, and on competencies and on values. (ECS, HR and CM: Performance Management)

However, the point is that when an employee is to be recognized for any achievement of his within the organization, and he must also be rewarded for the same. However, if the company lacks in sufficient resources, monetarily, then it must be noted that non-monetary rewards can be given as well. Just like, for example, a child is given a large chunk of chocolate cake as a reward for any achievement of his, rewards and recognition for achievement can be very powerful motivational factors for those employees who have worked hard to achieve something commendable in the organization. Many types of rewards have; however, direct costs associated with them, like for example, cash bonuses and stock awards, as well as a large range of company paid perks, such as car allowances, paid parking, and gift certificates, to quote some. (Recognition and Rewards)

The other type of rewards of recognition for the employees of an organization may be somewhat less tangible, but they have been proven to be equally effective, and these are known as non-monetary rewards. These rewards or awards, are comprised of both formal as well as informal acknowledgement, an assignment of better and more enjoyable job duties, an increase in the several opportunities for better training, and also an increase in that particular employee's decision making role within the organization. It must be remembered that non-monetary awards and rewards are extremely meaningful as far as employees are concerned, and therefore, very motivating for them. Therefore, if the plan to motivate the employees within the organization were to be based on non-monetary rewards, and also based on the performance of the employees, then several important factors must be considered at the very outset. Some of them are as follows: first and foremost, the primary goals of rewards and recognition for something that has been achieved must be studied. According to Jack Zigon, rewards can be defined as "something that increases the frequency of an employee action" and this in other words means that an employee must be judged by his very performance within the company in order to offer him the rewards. (Recognition and Rewards)

Therefore, it can be stated that the desired outcome of offering rewards and recognition to the employee would be to improve on his performance. Non-monetary awards can be therefore extremely motivating, especially when it is based upon the performance of the employee, and according to Keller, such rewards would only help to build up and bolster the self-confidence and also the self-satisfaction levels of the employee who is being rewarded. It goes without saying that a happy and satisfied employee would not attempt to look outside for another job, and this means that employee retention would also be infinitely higher with this type of non-monetary rewards giving. One research report on the factor of employee retention that was conducted by ASTD, has stated that consistent employee recognition was one of the major factors that contributed to employee retention, by which the top performing employees of the organization would be retained within the organization.