Engstrom's Equity Model

Communication: Leaders and executive must gain employee trust and confidence and communicate the execution strategy and share the expected results.

Recognizing employees for accomplishments such as finishing a major project, reaching sales targets or providing excellent customer service can be an important motivating factor. Set goals for workers to strive for and offer rewards for reaching them. This could be in the form of an employee of the month scheme, a bonus, or a promotion. Some companies conduct meetings where employees are recognised for good work in front of their colleagues. This can help motivate all the workers in the business to strive for success.

One of the main issues that the plant faced is the fact that there is no more understanding between the employees and management. They blamed each other. Management blamed the employees for the low productivity and the employees accused them of being devious with the bonus calculation (Michael Beer, 2008). As a result, the communication flow between them is broken. Management failed to effectively perform their duties as leaders of the plant. As one of the solution to this problem, the plant could benefit from using the supportive model. According to Newstrom, management who use this model support their employees in their work. Also, they provide tools to help them grow and accomplish things in the interest of the company (Newstorm, 2015). As a result, this would give the employees the feeling that

There could be a few options Dax and Mark could incorporate, but the employees may not like them. Hours could be lessened, benefits could be reduced, or insurance premiums could be raised. Any three of these ideas could make any employee angry just to receive their yearly bonus. However, It seems many companies are cutting back on their yearly bonuses because of loss, cutbacks, and the slow economy. Mark and Dex could hold a meeting explaining the issue and what is going on inside the company then give the employees options to choose from so they feel they have a say in what happens to their pay. Having an option makes an employee

When the employees sweat out to reach the production targets, they give their best and the mind-set or the attitude of the employees towards the organization changes. The management should set up monthly workshops to interact with their employees, thus making the employees feel that the management is well within their reach and is ready to listen to their pleas. Organizing such workshops will stimulate the feedback process which will help the management to cut down on production and sales costs in turn maximising the returns (Arnolds & Boshoff, 2002). Organizing technical trips and field tours further improves the management employee relationship as this allows the two parties to work together in a different environment and gain better ideas. The concepts of the ERG (existence, relatedness, growth) Model can be applied by recognizing individual employees who attain the highest productivity and then rewarding them with various benefits such as growth. Growth is what employees look for in any organization as the more

Engstrom should provide a space in which workforce can communicate by having managers listen to them and asking them questions. People generally know the right answers if they have the opportunity to produce them. For Engstrom creating teams and committees with members from each production department to management is important. A committee can help improve the line workers morale with ideas such as improvement for production, and meeting delivery deadlines. A committee of managers from each department within the plant who will work with plant line workers to make suggestions and improvements for employee morale and improvement. The teams formed should be from all functions and staffed with members whose talents match team tasks. Committees are

Give employees the level of energy, commitment, and creativity that they can add to jobs.

At the Engstrom Company there were many underlying issues that were truly affecting the company’s productivity and morale. When two of the most important factors in any organization are failing, it is nearly impossible for the company to stay afloat. Therefore,

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

Supervisors must understand the incentive pay process in order to support and administer it. Oftentimes, a lack of understanding causes managers to ignore or adapt the process as they see fit. Moreover, if supervisors are not trained on how to measure performance, the process will not be standardized across the company. (Gordon, Kaswin)

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Currently there is no formal incentive system. Many of the rewards are based on Berardi’s perception of employee performance. If he does not have the opportunity to have direct communication with all employees, it is a possibility that he is not able to appropriately assess individual performances. The employees themselves felt that “above-standard performance was not always noted.” This sometimes resulted in sub-optimal achievements being recognized while the employee going the extra mile was getting passed over.

Every human being needs motivation now and then. Incentives and recognition programs can support you in helping your employees become happier and more productive at work. As a leader, one of the main things to think about is how to recognize an employee for a performance that has exceeded expectations, objectives and goals. Therefore, I would like to introduce you in this paper to some ideas that hopefully would promote this method as one of the main priorities in today's and tomorrow's workplace.

To motivate employees to work towards reaching organizational goals, managers frequently depend on some form of enticement. Beyond monetary compensation, awards and additional types of acknowledgment can be given, and the ability to choose a work schedule is a possibility. A reasonable pay system, which would be an incentive for individuals and groups to achieve organizational goals, is a hardship manager’s face (Jones & George, 2011). Within the company that I work for, every quarter awards are presented to Customer Service Agents who have maintained a 95 percent or above quality score. Monetary awards are given out as well as time off coupons.

Aguinis (2013) discusses that fact that team-based organizations do not necessarily outperform work teams or teams in general. A reward system we learn, should not only target individual performance, but teams as a whole (p. 295). An ideal performance management system includes such characteristics as strategic and context congruence, thoroughness, the ability to identify effective and ineffective performance, inclusiveness, standardization and ethicality. The reward system applied to the State of Georgia, exhibits many similar characteristics of an ideal