Understanding Issues in Organizational Behaviour

Essay by tjantik August 2006

download word file, 1 pages 4.3

a. How effective are non-monetary incentives in relieving stress?

Monetary incentives usually relieve stress instantly and temporarily. In order to keep productivity, this incentive is effective in short-term scheme.

But, for long-term, non-monetary incentives such as awareness-raising workshop should be considered as well as providing monetary incentives program.

In addition, monetary incentives may cause unfairness among employees.

Contrary to that, non-monetary incentives are effective to relieve stress gradually in longer period of time. This solution may be a slow-paced and the effectiveness gets clearer as this solution penetrate into organization.

This student considers that non-monetary incentives such as workshops and/or counseling are categorized as process theories of motivation.

"Process Theories focus on the thought or cognitive processes that take place within the minds of people and that influence their behavior." (Schermerhorn, Hunt and Osborn, 2005, P121)

In addition, monetary incentives fill in physiological needs. This is lower-order needs of hierarchy needs theory (Schermerhorn, Hunt and Osborn, 2005, P122).

b. How does employee motivation impact organizational performance?

"Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended at work." (Schermerhorn, Hunt and Osborn, 2005, P120)

Employee motivation impact organizational performance a great deal.

If motivation goes down, organization would not be able to achieve the goal and mission.

Motivation strengthens a sense of unity among employees. A sense of unity leads employees to more effective teamwork.

Motivation makes employees to grow, and to fulfill self-esteem.

This is why high-level of motivation enables high-level of productivity in both quantity and quality.

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

Individual values and attitudes have strong cultural foundation (Schermerhorn, Hunt and Osborn, 2005, P121), understanding cultural diversity is essential for effective management.

"What proves 'motivational' as a reward in...