Regularly,
within teams, companies, and organizations, employees or team members are
offered incentives for achieving or exceeding production goals. This concept is commonly referred to as reward
systems which in conjunction with performance management tools encourage
individuals and teams to thrive.
Generally, performance is measured to determine the effectiveness of a
program and assess target or task results in order to ascertain whether or not
modifications are necessary (Russ-Eft, & Preskill, 2009). Furthermore, monitoring these elements
enables organizational leaders to track resources from financial and legal
aspects. The organization aims to ensure
individuals and teams are maintaining performance levels while appropriately
utilizing resources. Such practices are
a means of organizational accountability (Russ-Eft, & Preskill, 2009). According to Fleisher’s 2007 survey of the
American Evaluation Association, the majority of participants considered
organizational evaluation to afford the following:
-
Enabled the organization to learn from its experiences.
-
Encouraged strategies for adjustment.
-
Enhanced evaluative decision-making proficiencies.
(Russ-Eft
& Preskill, 2009, p. 14).
In terms of
performance management tools, individual evaluations, team member evaluations,
and team evaluations are employed. Respectively,
organizational leaders administer individual evaluations upon a subordinate,
colleagues administer team member evaluations to measure individual
performance, and organizational leaders administer team evaluations to
determine the overall effectiveness of the team (Levi, 2011). Additionally, the organization may evaluate
behavioral performance. Such evaluations
are utilized to rate actions which are beneficial or detrimental to team
processes. In do so, organizations
aspire to promote cooperation and team participation (Levi, 2011).
Regarding reward
systems, organizations typically offer individual, team, or organizational
incentives (Levi, 2011). Such incentives
may include pay-rate increase, bonus money, promotion, or in the form of gifts. However, each type of incentive may foster
negative and positive affects. First,
individual rewards may inspire a person to surpass production requirements, yet
the incentive obstructs team cohesion.
Next, team and organizational rewards allows the organization to
efficiently manage and accommodate the staff.
Each team member is compensated in a similar manner regardless of job
assignment or role. Such practices tend
to promote cooperation and team work. Conversely,
at times these means may form rivalries within the organization, obstructing
relations and cohesion. In addition, lack
of individual compensation may hinder high performers from executing at their
best (Levi, 2011).
In general, organizations are more productive granted individual or team
rewards. For instance, in certain industries staff members tend to stay on task, adhere to company
procedures, and exceed sales goals at a higher rate when offered free meals,
bonus money, or time off. Typically,
individuals and teams within an organization perform more effectively granted
the incentive to do so.
References
Levi, D. (2011). Group dynamics
for teams (3rd ed.). Thousand
Oaks, CA:
Sage Publications.
Russ-Eft, D. & Preskill, H.
(2009). Evaluation in organizations: A
systematic approach
to enhancing learning, performance, and
change. (2nd ed.). New
York:
Basic Books.
