Accounting – Essay Example
Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Accounting1.
The expectancy theory of motivation states that the level of motivation in an employee depends on three aspects: attitude of the employee, the ability to attain the specified goals and the rewards one hopes to receive at the end. (DuBrin, 2008)
The profit sharing allows the employees to share a part in the profits of the company. The employees develop a positive attitude towards the company as all employees are receiving a standard pay scale. The profits increase with their better performance and hence, a better pay for the employees. At the same time, these employees believe that they can easily attain the established goals and convinced with the rewards they will receive. On the other hand employee share ownership provides for a strong motivation in the employees as they become the part owners of the company themselves. The employees are satisfied with the reward structure as well as the ease of the goals. They also show a greater loyalty to the firm. (Smith, 2006)
Therefore, I believe that these two sources are very strong motivators for the employees since they provide part ownership and higher pays based on the performance level.
In the group incentive system, the team work and coordination develops between the employees and they are able to perform better at times. The team leader is constantly motivating and bringing up employees to achieve the established targets and allows for vey less deviation. Therefore, they are working to achieve common goals that will benefit them all. But at the same time, there will be some people in the work that have not performed well and have kept low during the work who will be rewarded same as other members since they are a part of team. This creates the dissatisfaction amongst the hardworking members and leads to low motivation. In the individual incentive system, the employees will be monitored individually and paid based on their performance. (Smith, 2006) Hence, I believe that individual incentive schemes are better than the group incentive schemes.
DuBrin, A. J. (2008) Essentials of Management. Cengage Learning
Smith, K. L. Thorne, H. (2006) Management accounting: information for managing and creating value. McGraw Hill