Interactive Simulation "Understanding Issues in Organizational Behavior"

Essay by kelkinseyCollege, UndergraduateA+, January 2009

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Understanding Issues in Organizational Behavior How effective are non-monetary incentives in relieving stress?They are effective, indeed, especially when combined with monetary incentives. In fact, it not only relieves stress, but also is reported to increase employee morale and overall productivity. For example, new research from the Society for Human Resource Management (, Decemer 2006) has found that a mix of non-monetary and monetary awards is most effective at improving employee morale. For top performers, more than half of the 459 responding human resources professionals said money was a strong motivator. For “sandwich generation,” employees, those caring for children and aging parents, benefits such as flexible scheduling and telecommuting were most appealing. The study concluded that while monetary rewards are perceived as having a larger impact, non-monetary rewards are also useful. However, while the majority of respondents said that incentives are effective at boosting morale overall, they agreed overwhelmingly that incentives are not effective at motivating under-performing employees to improve (,

Decemer 2006).

How does employer motivation impact organizational performance?The more motivated the manager and employees, the higher the performance level. In other words, there is a positive correlation between employee motivation and performance. This is quite obvious, since when we are motivated to perform, we usually do a better job than when we are not motivated to perform well. An example of this would be motivation through employee recognition. If an employee is recognized for the good job that he or she is doing they may be more willing to put out a higher performance level. This in turn affects the managers because the managers get recognition for their employees’ good performances. Getting the recognition that people deserve helps them to want to perform at high levels.

In today's business environment, what is the importance of a culturally diverse workforce?It...