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Performance Management/Motivation through reward.


I am Azwar. HR Manager in Cement Factor. I am working on employee performance now a days. but my subordinates are unable to convince me. I have few questions which i would like to know about:

Q1: How motivation through rewards can boost/impact organizational performance?

Hi Azwar,

Thank you for your question.

Rewards come in varying forms.  For example salary increases and one time bonuses that do not affect base pay, and stock awards.  In the non-financial category, rewards can vary widely from things as simple as theater tickets for two people to trips for two to a resort hotel.
But if your question is about motivation and rewards we have to deal with the two as separate topics.
First, rewards that are motivators.  

Rewards motivate employees as rewards recognize and reinforce certain behavior.  So the manager tells the employee you have done a great job, here are 50,000 Rupees for outstanding performance on this project, the theory is that the employee will be motivated to continue the great work.  If the award is done in front of his/her peers or at an all employee meeting the motivational factor increases as there is greater recognition.  Great work that goes unrecognized and/or unrewarded, overtime, is a de-motivator.  So how the recognition is delivered plays an important part as well.  And generally, the typical annual salary increase program is not enough to do the job of motivating employees.

Second, motivation -- much more than financial reward.  

The research over the years from companies and consultants alike will tell us that financial motivation is only about 25% of the formula in creating really great employee engagement workplaces or work culture.  So the annual salary increase program, even if it is designed and administered well, is not enough to do it.  In fact the research would say that the remaining 75% of the motivational formula includes things like non-financial employee recognition, degree of challenge on the job, company driven training and development assistance, and company driven career coaching and counseling.  Of course all this comes down to the quality and skills of the employee’s immediate supervisor/manager and his or her ability to use these tools to motivate his/her direct reports.  As well, the company has to train its managers in delivering the motivational tools that impact employee motivation and work culture.

So Azwar,  you are correct, rewards are important in motivating employees as they reinforce employee behaviors that are desirable to the company.  As you work on creating these keep in mind non-financial are as important as financial and the managers leading and delivering these motivational rewards need to be skilled in doing so.

Properly managed and administered all these motivational and reward forms motivate by reinforcing employee behavior.  And when done well employees will be motivated to do more, be involved more and in the end that behavior will positively impact internal and external customer service as well as overall company performance.  It is not a one-time exercise; it takes time to build employee motivation through rewards.  There is clear evidence out there that will validate the relationship between recognition, rewards, motivation and company performance.  Here are some website references you can use that link rewards, motivation and company performance:

Don’t let the dates on some of the above reference articles/PDF’s concern you… this stuff is timeless.  There are many more websites out there that offer continuing evidence.

The above is my opinion; I hope it is of assistance to you. Good luck in your work!

I would appreciate it if you would take a minute and evaluate this answer on the website.  As I suspect you are, I am always interested in continuous improvement.  I believe the evaluation is only four multiple choice questions.  Thanks in advance!


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Mark Eichinger


Questions related to Performance Management: related systems and processes in organizations, supervisor-employee roles, organization issues, relationship to employee training and development


My Human Resources career spanned 30 years of management and leadership posts covering domestic and international locations and included assignments in operating plants, divisions, business units, and corporate level postings. Experienced in organization culture management and all operating situations with years of experience in matrix organization structures. In the Asia Pacific region, led the multiple-country Asia Pacific H.R. organization, the professional and general manager development programs, China’s university relations program, and managed the Asia Pacific key leaders process. Coached professionals, managers and leaders. Passions are leader accountability, employee engagement, development and performance, and business strategy, planning, deployment and metrics.

Small business administration, Lions, Kiwanis, and other community organizations to included boards of directors posts in public and private organizations. -- Business Consulting.

Bachelor of Science in Business from Youngstown State University; certificates from the Thunderbird School and University of Tennessee in Management and Lean Manufacturing.

Awards and Honors
Corporate level awards for communications and compensation projects.

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