Effective Performance Of Public Sector Business Essay

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Effective performance of public sector is fundamental to most developing countries. Employees have been seen to participate a great deal; however, the public sectors are often viewed as unproductive and rigid following major problems of management development.

They are confronted with insufficient structures, characteristically with too few managers, and a deficiency in of consistent personnel progressive policies. Too often it has been believed that government employees can acquire certain tasks based on the job necessity, but it is increasingly being recognized that there is a need for specific guidance to make possible the acquisition of the skills and good conduct for their increased efficiency. This was evident in a research conducted in Malaysia. Findings revealed that organizational efforts such as the availability of equipment, communication, and involvement of all stakeholders, had significant and positive effects on productivity performance (Ramli, B.R. 2005).

Although very true, many public organizations though equipped still experience low productivity amongst its employees.

A vital Human Resource practice in organisations today, is that of good rewarding and recognition program. As cited by Manzoor, according to Maurer, rewards and recognition are important factors in enhancing employee job satisfaction and work motivation and is directly associated to organizational success (Maurer 2001 cited in Manzoor 2012: 6). Khan, Farooq and Ullah conducted a study in which they examine the relationship between rewards and employee motivation in commercial banks of Pakistan. Their study focused on four types of rewards of which one was recognition which they tested through Pearson correlation. They revealed that recognition correlates significantly (0.65) with employee work motivation (Khan et al. 2010: 45).

Rewards and recognition management provides a step by step approach for designing a remuneration that recognizes job requirements, employee-related knowledge and skills and performance-related incentives that link individuals, teams, work units and organizational performance. Non monetary rewards differentiate an organization's employment offerings. It is the intangibles (those that cannot be seen physically) that distinguish employers on the labour market from the competition and earn employee commitment. (Zingheim and Schuster, 1997). According to Casio, an organisational rewarding system includes both financial and non-financial rewards. Financial rewards include direct payments as well as indirect payments. Non-financial rewards include everything in a work environment that enhances a worker's sense of self-respect and self- esteem. They are usually thought of as not salary but can be in monetary terms or cost the company some amount. Some of these non-financial rewards and recognition include appreciation, all paid holidays, off work, companywide benefits, annual bonus, incentive plans, sales incentives, housing loans, life insurance, training, education, promotion, personal communication with employers etc. Employees have several benefits from being rewarded and recognized, so does the organization. For employees, it is the means by which they provide for their own as well family needs. Provide for their own here means enriching themselves, gaining that confidence, knowing that the organization needs them more than anything, gaining a sense of belongingness to the organization etc. Family needs are met where the organization offers holidays, paid hospital and educational bills etc. on the other hand, the other beneficiary here is the organization itself. Organisations often find it very possible to accomplish many goals with these reward and recognition systems in place and these goals include attracting and retaining people and motivating them to perform more effectively. These non financial rewards and recognition can also be referred to as the relational forms of rewarding employees and includes recognition and status, working with a great team or co-workers, employment security, challenging job and opportunity to learn or develop. All these result in the personal satisfaction of the employee.

Thus rewards are not just about money or cash , that is, extrinsic rewards, but also concerns those non-financial rewards that provide intrinsic satisfaction in doing the work itself.


Rewards according to Farkiya are the 'things given or received in make up for worthy behaviour'. They are all of the tools available to the employer that may be used to draw, encourage and maintain employees. Total rewards include everything the employee perceives to be of great importance resulting from the employment relationship (2011:1). Recognition, also according to Farkiya, is 'a term used to describe an ability to identify things based on prior knowledge' (2011:1).

Jack Zigon also defines rewards as 'something that increases the frequency of an employee action' (1998). Sherry Ryan has explained that, 'rewards and recognition is considered a powerful tool if employee motivation and improvement wants to be achieved' (2006). These definitions all project an evident outcome considered necessary; improvement in performance.

Although these terms are frequently interchanged in its usage, it should be noted that reward and recognition systems are to be considered separately. The reward and recognition systems normally refer to programs set up by the company to reward performance and motivate their employees.


Non-financial reward and recognition is a method of identifying either individual, employees or teams for particular praise or acknowledgement through non-monetary channels. The most significant part of this definition concerns the term 'non cash'. It is important to be aware that the concept of non financial reward and recognition does not mean should have no financial value, it simply means that, whatever given should not just be money. Money is certainly valued, but its impact on intrinsic motivation is limited at best. This method of conveying appreciation is likely to be considerably more memorable than a cash award which is simply subsumed into an employees' salary. (Silverman, M. 2004:3)

Arul, P. contributes to the fact that Non-monetary rewards and recognition plays a significant function in work units and agencies to attract and maintain their employees. He admits to it as the everyday exchanges that enhance employees' feeling that they are being appreciated and recognized contribute to high morale in the work environment. Its main aim is intended to offer psychological reward of not direct financial assistance (2009) . There are many elements of scheming and sustaining reward and recognition systems; however, it is crucial to keep this disparity in mind, particularly for top management fascinated in motivating staff while bringing costs to a minimal (Farkiya, 2011:1).

In Michael Silverman's 'Non financial recognition; the most effective of rewards?', Rose, noted that Non-monetary rewards and recognition can be thought of as a non-cash award given in recognition of a high level of accomplishment or performance such as customer care or support to colleagues which is dependent on achievement of a pre-determined target (1998 cited in Silverman, M. 2004:3).

The great early motivational thinkers, Maslow, Deci and Herzberg were cited by Silverman. They give details that despite differences in their approaches, there are generally two distinct motivational subsystems, intrinsic and extrinsic motivation. Intrinsic motivation is thought of as internal thoughts or feelings that feed one's desire to accomplish, perform and become involved in activities. Intrinsically motivated behaviours are those which are motivated by the underlying need for competence and self esteem which may be performed in the absence of any apparent external stimulus. In contrast, external motivation is that which stems from the work environment external to the task, it is usually stimulated by external rewards (1954, 1975, 1966 cited in 2004:2).

Whereas financial reward clearly influences extrinsic motivation, it has little impact on intrinsic motivation. Rewards and recognition is needed to enhance intrinsic motivation. Pfeffer has noted that the use of pay as the primary reward may encourage people to join and remain with their various organizations but may be for the different reasons, meaning the effect of intrinsic motivation is diluted (1998:112). 'People do work for money, but they work even more for meaning in their lives. Companies that ignore this fact are essentially bribing their employees and will pay the price in a lack of loyalty and commitment' (Pfeffer, 1998:112).

Carrel refers to extrinsic rewards as salary and benefits as well as intrinsic rewards as achieving personal goals, autonomy and more challenging job opportunities (2007: 56).

According to Ajila , 'an intrinsically motivated individual will be dedicated to his job to a point to which the job naturally contains assignments that are remunerating to him or her on the other hand an extrinsically motivated individual will be committed to a point that he can achieve or obtain external rewards for his or her job' (1997 cited in Akanbi, P.A. n.d:2 ). He has further suggested, need, is vital for an employee to be motivated in a working environment, and that, that individual needs to perceive a likelihood of pleasing him/herself through some remuneration. 'Again, if a reward is intrinsic to a job, the desire or enthusiasm to work is intrinsic but if the reward is described as external to the job, the enthusiasm to work is described as extrinsic' (1997: Akanbi, P.A n.d:2).

Many other forms of Non-monetary rewards and recognition have been studied as being very effective. Bob Nelson, who is a recognition consultant and self-proclaimed 'Guru of Thank You', has specified in his article 'Everything you thought you knew about recognition is wrong' the sort of recognition employees welcome most as being recognized directly by their employers. He has stated that, '78% of employees indicated that it was very or intensely necessary to be recognized by their employers when they put in great effort into a task' and that the number one choice for recognition is genuine admiration given frequently with specific instances (2004). Allen and Helms' research also authenticates the importance of 'regular expressions of appreciation' by top management to encourage the conduct of employees to attain goals (2002 cited in Mackay and Whitson 2009:8).

Monetary rewards, especially, are still being used by managers. However, this strategy of improving employee productivity levels have been found out not to be 100% effective, as perceived. According to Chlo, findings published in a journal of a Japanese study have revealed that comparable effects are produced when someone is paid cash and offered some kind of compliment and that the part of the brain that reacts to compliments partly covers the part that reacts to monetary rewards. Employees are more concerned with how they are dealt with by their managers on a daily basis, that is the most important factor to them (Chlo, 2009). Silverman's paper 'Non-Financial Recognition' refers to this as 'perhaps the most obvious benefit of praise is that a simple, informal 'thank you' does not cost anything' (2004:5).

Chlo also refers to Nelson, a motivational speaker and author of '1001 Ways to Reward Employees', who posits value of reward-based recognition and the idea that money is not the ultimate motivator and that 'the highest-recognition managers all look out for is opportunity to recognize their employees when they do good work, and do so on a daily basis and advocate regular, sincere recognition as a great way to spur employees to action' (2004 cited in 2009).

According to The Forum, most managers find non-monetary reward and recognition systems to be more effective in obtaining eight out of ten organizational objectives, some of which include reinforcing organizational values, improving teamwork, motivating specific behaviour, creating positive internal communication and more, whilst monetary compensation systems only accounted for raising sales and improving customer acquisition based on bonuses (Scofidio, B. 2006).

Since improved productivity is dependent on whether an organisation has positively motivated employees, according to Oosthuizen, it is very important that proper reward and recognition systems are implemented (2001). It is also to be understood, therefore, that organisations and by implication, managers, need to have an understanding of what motivates and how to motivate employees to achieve higher levels of performance in order to address expectations (Amos et al., 2008:173). Pei (2007:158) is of the same view adding that, since employers are a company's most valuable resource, there is the need for managers to aim at a major focus of satisfying and retaining employees.

Employees who are able to experience and receive recognition for their efforts intend have a better perception of their work, where they work and of their employers (Shore & Shore 1995:164). This thought is promoted by Buchanan who adds that the 'recognition of contributions towards the organisation has a positive relationship towards increasing the commitment of the employee towards the organisation and its objectives' (1974:536).

People-friendly systems and a conducive environment, is also a form of rewards and recognition that is acceptable and appealing for employees, and will motivate employees to perform more effectively (Viedge 2003: 52).

It is also easy to argue that any 'incentive' tools, whether monetary or non-monetary, is intended to provide some form of motivation to employees. In motivating workers, organizations will be able to tap from these employees', high performance and good working attitudes that have been achieved through 'incentives'.

Latham and Budworth (2004) in their study of work motivation in the 20th century made known that motivation was in the early 1900's thought of to be only money. It was later revealed during the 20-th century that there were other aspects than just money as a motivational tool for employees a view the researcher totally agrees since employees believe their satisfaction with their various jobs is an important pointer towards a progression into good job performance. This is to say; happy employees are productive.

Ernest and Latham (2006) believe that motivation is a psychological factor which has an effect on employee mental attitude and health, and in order to be motivated, a person needs to be satisfied. Lack of this, will contract a person's self esteem and self actualization which could progress in lack of interest to advance and grow, both in the line of work and personally.

The term 'motivation' is arrived from the out from the word "motive" meaning; for action. Definitions of motivation by some authors include;

'forces within or internal to a person that arouse enthusiasm and persistence to pursue a certain course of action' (Mtazu 2009:7)

'the psychological forces within a person that determine the direction of a person's behaviour in an organization…' (George and Jones 2002:181),

'the willingness to exert high levels of effort towards organisational goals, conditioned by the effort's ability to satisfy some individual needs' (Robbins 1998:168),

McShane et al; "...a factor that exists in an individual which has the potential to affect the way, strength and eagerness of behaving towards work (2003:132),

'the thought that explains the propelling force in an individual that explains differences in intensity of behaviour (Petri & Go-Vern 2004:16), and Rainey; (1993:20), '….the degree to which a person is moved or aroused to act'.

Others include;

Mitchell who defines it as '…a set of procedures apprehended with the force that strengthens behaviour and directs it toward achieving some goal' (1982:81),

'…an inward drive to please an unfulfilled need' (Greenberg and Baron 1983: 190), and

(Anon n.d:201), 'getting someone moving, among others.

Although in a fundamental sense these definitions are correct, it needs to be altered for organizational reasons, that is, the attempt of employees to provide their all can be misguided. It should focus on both organizational goals and individual needs. Employee motivation should be one of the policies of managers to augment efficient job management amongst employees in organizations. Motivation, the researcher understands, is a tool needed by an organization to 'provoke' employees since provoked employees will be constantly looking for improved practices to perform a duty. It is therefore essential for organizations to offer motivation to their employees. Getting employees to perform their best work even in very demanding situation, is one of the employees most stable and greasy challenges and this can be made achievable through motivating them (Manzoor, 2012: 3)

There are several types of motivation which focus on different forms of trying to get the best out of employees in an organizational setting, however, employee motivation is usually described by expects as being 'intrinsic' or 'extrinsic' in nature. Extrinsic motivation is said to exist when behaviour is performed to attain externally administered incentives whiles intrinsic motivation, according to Yavuz, is a self-generated push that comes from within with the aim of influencing behaviour in a particular way or direction' (2004:15 ). In Mtazu's opinion, extrinsic rewards arise from the factors of job context that include financial rewards, developmental rewards, and social rewards whiles intrinsic rewards are inherent in job design such as interesting and challenging job, degree of feedback, task variety, and autonomy (2009:23). A typical example of extrinsic motivation is an employee who is motivated to show up at work on time everyday with the wish to win the monetary reward awarded for punctual attendance, an unreliable and short term effect on employees. Intrinsic motivation, on the other hand, is associated with job related and social enticements such as the opportunity for one's ability to be used, having interest in work, being recognized for good job done, development opportunities, being put to a challenge, achievements, being offered the chance to participate in decision making, and being cared and thought of etc. A typical example is, an employee who is eager to work long hours because of the sense of feel that the assignment he/she is working on is stressful but worth completing. In this situation, the individual takes action because the expected result of that action directly appeals to his/her values. Intrinsic motivators are expected to have a more profound and long lasting effect since they are come natural in individuals (Yavuz, 2004:15)

Intrinsic motivation coming from within an individual or activity, influences conduct, performance, and welfare constructively, whereas, extrinsic motivation on the other hand is associated with "tangible" incentives such as wages, benefits, bonuses in cash terms, some security, etc' (Ryan & Deci, 2000). It can be gathered that the use of extrinsic motivators to rejuvenate employees can lead to a point where those motivators, mostly monetary ones, must get bigger and better to achieve desired results and that incentives that exist in the ordinary incidence of proceedings(natural) such as demanding tasks, independence, recognition, time off, greetings etc. are of more value than the unnatural (extrinsic) rewards'.

Intrinsic motivation, here, is what is referred to in this paper as the Non-monetary rewards and recognition offered to employees.



Some examples of Non-monetary rewards and recognition include:

Personal Communication:

Communicating with employees is a major recognition tool. Communication is the informal sharing of meaningful and timely information between organizational members. It has been operationalized as the frequency of business contact and exchange of information, to improve the employee productivity among other definitions by several authors such as Jirk, Beckard & Pritchard, April, Ford&Ford etc. Studies have shown that lack of communication is a major barrier in motivating employees (Khan et al. 2010:50). Importance of communication is it being used as a channel of preparing people for the positive and negative effects of change, increase peoples understanding of, and commitment to change. By and large, the hard work done by the organization to advance in the communication between its employees is to develop the level of efficiency of an organization. The researcher agrees to communication being a recognition tool as it helps in solving problems amongst employees. When communication is introduced into an organization, it enhances respect between employees and employers. It becomes a way by which employees can voice out their opinions about issues.

Companywide benefits:

For Henderson (2003), these benefits typically include all non-cash payments and do not include direct cash payment of stock options. Generally, they are retirement benefits which are paid almost by all organisations, medical and dental facilities for the employee and family, transport facilities to and from work, sometimes recreational facilities and life insurance cover found sometimes in smaller organisations.

According to Farkiya (2011:2), some other forms of Non-monetary rewards and recognitions include, Assignment of more enjoyable job duties, Opportunities for training. Increased role in decision making, Flexible work schedules, Paid vacations, sick leaves and holidays, Thanked publicly at a departmental function, Receiving an extra day off, Personnel items and clothing's such as caps, shirts, sweat shirts, and other tools as electronic radios and sports equipments.

Yavuz (2004:2), also substantiates that Non-monetary do not necessarily entail direct cash and can be tangible or intangible. Examples she stated, include; employee encouragement, assigning of challenging duties, recognizing employees' good work through letters, gifts, plagues etc., improving working conditions and instituting some services for employees and organizing social activities, etc.


Constant changes in today's world, and regards to technology and innovation, have necessitated the reassessment in the approach in which employers interact with both their employees and their customers. Concerns have also been raised on the need for companies to put in order tasks at hand, devise systems and procedures, and re-examine and advance current management styles.

In a poll concerning employee productivity, TJinsite, research and knowledge arm of TimeJobs, revealed that 'more than 35% of the employees consider the short of recognition at their various work places as the major obstacle to their productivity' (TJinsite, Timejobs The economic times 2012). According to them, 'rewards and recognition aimed at achieving goals at their various workplaces operates as a confidence booster, which in turn develops into improved productivity' (The economic times 2012).

The benefits of using non-monetary rewards and recognition are numerous. Many companies have agreed that implementing rewards and recognition systems would in effect go a long way to enhance relationships with their employee, as well as, improve returns of the company (Giftcertificates, 2012). GiftCertificates have adopted a method for attracting and retaining employees and inspire them to work at their fullest potential. This, they have realised, improves job satisfaction, lowers absenteeism and lost time, increases productivity, informs and educates employees and increases savings (GiftCertificates 2012).

Bob Nelson, in his article, 'the impact of recognition' has also stated the benefits of recognition as an improvement in communication, a better cooperation from employees, decrease in absenteeism and turnover, higher job satisfaction and loyalty. A client of Irvin of HR.com has said that their annual employee survey has revealed that recognition has boosted the productivity of 90%+ of their employees (2011). Again, according to them, 'Achieving these kinds of results in improved efficiency and performance are possible by establishing a true culture of recognition in which it develops into almost a tradition for all employees, at every level, to temporary halt, observe and be pleased about the efforts and accomplishment of those around them' (Irvin, HR.com 2012).

Chiang & Birtch (2012) have noted that, rewards that are offered in Non-monetary terms, such as holidays, family benefits, affects employee's perception of his/her workplace as a 'supporting and caring' organisation. This is to say that by providing employees with that much NMRR as possible makes employees more purposeful and efficiently. Employees become more accurate in their work. This thought is also supported by the researcher who posits that, when employees begin to realize that their organization really values and rewards good productive behaviours, the employees would intend embrace or welcome those values and on the other hand, when realized that services are not being rewarded, orientations may completely change.


It is necessary to comprehend human nature, although easy very complicated. An appreciation of this is a plus to providing effective employee motivation at the place of work. Motivation explains why members of an organisation behave as they do. It either assists or hinders the organization from achieving its goals. Maintaining workforce motivation is central to an organization's success, because it determines whether an individual will contribute or not to the inputs needed by an organization to make it effective. Self-motivation needs to be persistently reinforced by some rewards and recognition.

In trying to better explain the reason why more and more employees work harder when rewarded and recognized (financially or non-financially), a number of theorists have conducted research studies on personality and motivation, particularly in the workplace who have explained the union as predicted, explained and influenced. There are several theories in relation to trying to understand the human nature, below are the fundamental ones in relation to work motivation.

Expectancy theory:

According to Shields (2007:78), the theory assumes that work behaviour is determined by individual expectations Duah (2011: 29), also suggests that the expectancy theory focuses on how workers decide which specific behaviours to engage in on the job and how much effort to exert. That is, how workers make choices among alternative behaviours and levels of effort. Bagraim (2007:90) believes that expectancy theory has been well researched and is regarded as the most advanced motivation theory. The theory emphasises the importance of employees believing that they could improve their effort and that this would lead to improved performance which would be recognised and would lead to a reward which they desire. Expectancy theory is really a model of the process of being motivated by a reward system and it emphasises the importance of certain requirements for that process to operate such as clear alignment of performance (instrumentality), reward creation to meet different individuals' needs(valence), training employees to be more efficient and eliminating any barriers to performance(expectancy) (Mtazu 2009:42). In a sum this theory is to explain that, where employers have ensured that their workers understand what rewards will result from high effort, where the employer have made sure that these rewards are desired by the workers, where supervisors and managers have made sure that employees know what effort is required from them and where the employees have confidence that they will have the facilities, the resources and the ability to achieve the effort and produce the results, then motivated is acheived. Where these constituents are missing, the attempt to motivate has a high probability of failing.

Implications of the Expectancy Theory

Managers can certainly use expectancy theory in developing their own motivation programs. There is the need for managers to centre on employee expectations if they want to be successful. Managers need to adjust assignments and rewards to facilitate the development of realistic challenges within jobs. Managers must actively determine which second-level outcomes are important to their employees. Again, the researcher believes that managers, who know what subordinates prefer, can attempt to provide to them, highly valued outcomes. Since individuals prefer different outcomes, motivation with reward and recognition programmes should be designed with enough flexibility to address such differences in individual preferences.

Need theory:

Need theories of motivation identify the needs that workers are motivated to satisfy on the job. Two major need theories, Abraham Maslow's Hierarchy of Needs and Clayton Alderfer's ERG Theories are worth mentioning here:

Maslow's Needs Hierarchy

Bagraim(2007:74), Shields(2006:68), and Swanepoel et. al(2003:325) have explained further Abraham Maslow's developed theory of human motivation in terms of work motivation. This theory proposes that human beings have five universal needs that they seek to satisfy, they are; Physiological need, Safety needs, Belongingness need (social), Esteem needs, Self-actualization needs.

These were based on the following assumptions by Maslow ;

a) Human beings are motivated by unsatisfied needs

b) These needs are in a hierarchy of importance that is, from basic to complex;

c) That certain lower needs have to be satisfied before higher needs may be satisfied;

d) Needs are presented in a hierarchy from low to high level of need in five classification.

The Maslow theory of motivation states that immediately we are motivated to satisfy the cravings of our basic needs, (deficiency) we are moving towards growth and self-actualisation. Satisfying a need is healthy as needs is pre-potent. They greatly influence all our actions and can vary among individuals. As one desire is satisfied, another need (higher) emerges to take its place to be satisfied.

Duah (2011: 32) also adds that according to the theory, human needs are arranged in an order such that satisfaction of the lower levels of need is sort for first and once that level of need is satisfied, a person is motivated by the next level up the hierarchy, which then advances through the order.

The hierarchy is in order of;

Physical Needs: These are the very basic and primary needs such as air, water, food, sleep, shelter, relief from and avoidance of pain and others. They may include the desire for better pay and conditions, vacations, pension plans, break periods, comfortable working conditions etc.

Safety Needs: This level involves instituting stability and consistency. Once the basic needs are met, these needs emerge which are mostly psychological in nature. It is the desire to preserve what has already been achieved in order to protect oneself from harm, threat, injury, danger, loss or deprivation. In organisations, these are the workers need for job security, safe working conditions, rewards and benefits, retirement plans and severance pay.

Belongingness Needs: Love and belongingness are the next on the hierarchy where the individual turns attention to and desire to satisfy this need for companionship. People like to belong to a group, that is work groups, and to have good interpersonal relationships with other colleagues and being involved in organisation-wide and group activities.

Esteem Needs: These are people's esteem or ego needs and may take two forms. First, the need for self-esteem that comes from satisfying oneself in feelings of achievement, competence or mastery of a task, maturity and independence. Secondly, there is the attention and recognition from others and this revolves around personal reputation, peer-group status and appreciation. In the organisational setting, rewards that meet these needs are status symbols, responsibility titles, job content (satisfaction of completing the job itself) participating in decision making and chances for advancement.

Self-actualization Needs: This is a desire to being able to become what one is capable of becoming. This is trying to realise one's full potential. In order to meet these needs organisations must develop employee abilities, make them creative, and give them the chance to achieve their maximum and to have control on the job (Akah 2010:7,8).

Implications of Maslow's Theory

Lower needs need to be satisfied. It is only then, pressing needs can be addressed. If a manager tries to motivate an employee whose safety needs have not been met by offering a social reward, the desired goal-directed behaviour will not take place. Secondly, an important implication is that lower needs form a foundation on which the higher levels are built. Only when lower-level needs remain satisfied, can managers hope to motivate workers by the satisfaction of higher level needs. For instance, an employee whose lower-level needs have been satisfied and suddenly, faces a threat to his or her job security, will immediately shift attention to the lowest level needs. Another implication is the idea of sufficiency. A person almost never feels that a need is totally satisfied. Most people want more money, security, friends, esteem and self-confidence no matter how much they have achieved. Thus, individuals move up the hierarchy not when a need is wholly satisfied, but when it is sufficiently satisfied.

From these implications, managers must note that a fulfilled need may be lost in terms of motivational potential. Therefore, they should be adviced to encourage employees by creating programs or practices designed to pleasing emerging or unmet requirements.

The value of Maslow's theory lies in its emphasis on motivating employees by appealing to their individual needs. To motivate employees, the manager must accurately identify and gauge their most important need and utilise those needs by linking their satisfaction to the effort or performance of employees. For example, if a need for security has been identified, perhaps the manager could communicate to the individual employee and stress the relationship between high effort and job tenure that is putting in more into the job to sustain and maintain his or her job. The important thing from Maslow's theory is that it has led to greater thinking and research in the field of employee motivation and also about the value of man.

Clayton Alderfer's ERG Theory

Clayton Alderfer has also proposed his ERG need theory of work motivation to align more closely with empirical research but reduced the need to three:

a) Existence Needs: refers to people's worry of fundamental material existence needs; what Maslow named 'physiological and safety needs'.

b) Relatedness Needs: the desire we have for sustaining interpersonal relations; in Maslow's terms; social needs.

c) Growth Needs: the natural desire for personal growth; in Maslow's terms; esteem need and self-actualisation (1969 cited in Duah 2011: 25).

Equity Theory of Motivation:

Equity theory explains that workers should compare what they receive from their jobs and from the organisation to their inputs in the organization. According to Bagraim (2007:88), employees who recognize that they have been under-rewarded or over-rewarded, re-establish equity by altering their own inputs, or, varying comparison or ultimately quitting the job. Equity theory, as understood by the researcher, is based on the hypothesis that employees, who work for rewards, are enthused by a desire to be fairly treated at work. This is important as maintaining employee perceptions of equity is a critical aspect of the managerial role. Armstrong and Murlis are of the opinion that employees consider the ratios of their efforts to their outputs correspond to that of comparable employees and that inequity exist when these ratios are unequal (1994:38).


According to Bowey (2001) key principles such as Goals and Reinforcement, Involvement, De-motivators, Relevance of Reward and recognition, Equity and Fairness are worthy of incorporation into reward and recognition system strategies to act as motivation. They are

a) Involvement - the involvement in the progress of any new payment system is essential to employees. They need to be consulted about problems they are anticipating as well as be optimistic to its development.

b) De-motivators - Managers must eliminate all the teething troubles, which discourage employees from attaining high levels of performance

c) Equity and Fairness - All performance values to be useful in achieving desired outcomes, objectives or improved conduct for remuneration, should be fair and similar for all employees performing the same task within the an organization.

d) Relevance of Reward - managers must ensure employees are fascinated by receiving the future rewards and recognition.

e) Goals - there is the need for employees to be made aware of which rward and recognition they would earn when goals , targets and changes are met. This should be precise and clear.

f) Reinforcement - good systems should be instituted such that employees may receive feedback from their employers and know what employers actually expect from them in order for them to earn desired rewards and recognition. (cited in Duah 2011:36)

As it should be noted, many of the above principles necessitate total involvement of supervisors and managers as from their employees. Employees are usually blamed entirely for the poor performance of an organization. It has only in recent times been realized, that poor employee performance could be associated with poor management.

Below are a number of principles to note when implementing reward and recognition policies in organizations;

•    'Rewards and Recognition is not compensation

•    Rewards and Recognition should be personal

•    Employees should believe that reward and recognition are not based on luck

•    Recognition should be given for effort, not just accomplishments

•    All employees should participate in reward and recognition programs

•    Match the reward to the person

•    Match the reward to the achievement

•    Be timely and specific' (Farkiya 2011: 2).


The organizational benefits of implementing reward and recognition systems have been revealed to acknowledge performance above and beyond the norm, enhance customer service, recognise achievement and support line managers. (Rose 1998). The main objectives of a reward and recognition systems as discussed by Silverman include its ability to create a positive work environment, reinforce desired behaviours, motivate high performance, increase morale, support organizational mission/values, increase retention/ decrease turnover, encourage loyalty, and support a culture change (2004:8). It is also suggested, that, by its implementation, employees become knowledgeable about them, which makes more valuable employees (Scott n.d: 14).Also, if there is rationale behind believing that non-monetary rewards draw specific types of employees, and those employee are more fruitful in a certain type of firm, then providing this type of system would in turn attract better employees to that company.

Again, it serves as a boost in morale for organization's employees as genuine reward and recognition of performance improves morale. Higher morale in the work place leads to job effectiveness, greater productivity and builds commitment to the organization. It enhances a more positive organization's image which enables the public have a positive perception of employees who are effective, motivated and committed to their jobs. Finally, Farkiya, is also of the view that it will also serve as a catalyst to create policies that will recognize outstanding employees and show appreciation to all employees (2011: 3)


(still researching……….)