How Reward Schemes Provoke Employee Motivation

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In HRM one of the serious issues faced now are the interest of rewards and motivation. The employee is asking a return of favour in any type for the benefits the employer has acquired due to the employee in terms of business. Employees motivation should be framed as one of the strategic objectives of the company.

Motivation is what that drives the employee towards a direction of benefit of the employer, as it is different from job satisfaction. Motivation can be diversified as primary (physiological, biological, unlearned), secondary (moderate risks, feedback, satisfaction with accomplishment, pre-occupation with the task) and general (unlearned, not physiologically based). Motivation can be done by recognition, achievement, promotion in the work and providing some growth to the employee.

The process of theories of motivation claims that the value of reward and reward probability provokes the effort and then perceptions, abilities turns out to give performance where it will progress the employee to get rewards in different types and then it gives a prominent amount of satisfaction to the employee as well as employer. Rewards can be in any form by means in increase of pay or bonus on the basis of the rate increased in production and also giving shares or a percent of the profit the company has made this will clearly steer the employees in a better direction towards the better of the employer.


Socometal's Africa

To discuss Indian culture and HRM

To discuss African culture




Socometal is owned by Senegalese with a 42% of share and is dominated by a French parent company with a 58%of share, Senegal is a republic country in the south of Senegal river. This company manufactures metal containers and cans the company has grown significantly over the years in size with employers from 150-800 and they have turnover of $440 million the firm is often considered as a model in terms of Africanization of management policies, there are a significant amount West African Managers now and only 8-10 top managers are appointed from France and a few middle management non-technical managers are Senegalese.

In a coffee shop in Dakar an young senegalese engineer Diop who was educated in of the France's top most educational centre Grandes Ecoles in Lyon was meeting N'Diaye he was a worker in the model factory and also a local tribes chief's son the worker often turned to him when they had problems in person as well as profession. The meeting was all about increasing the production to about 30% with only two hours of extra work and also will be paid for that to meet a special order at the earliest, if he agrees N'Diaye will be the guarantor to increase the production from 12000- 20000 by tomorrow evening.

Diop's senior manager was Mr Olivier Bernard from France who was graduated from an prestigious engineering schools Ecoles Centrale in Paris. He was 40 but he didn't succeeded in the company to a higher level that is because he was not calm natured and was arrogant and he would shout at everyone as was not communicative. When Mr Olivier Bernard was not in the country Diop was forced to take a decision which was beneficial for the company, when Diop had asked many of his higher officials about this situation and the solution some of them intervened that it would not be successful and they have had already tried this and reported this did not work, inspite of that they asked him to give it a try and then N'Diaye and Diop agreed for a increase in production with the payment for the extra hour, and then proportionately the production had increased by the time but only with one extra hour the production levels where around 18000 - 20000 which was 38 - 40 percent more than the levels they expected they reached this level to gain more wages as well as to prove to the French management, it was at this time Mr Olivier Bernard was to return from his country and saw levels of production which was not experienced in the history, instead of being happier Mr Olivier Bernard told that Diop had put the company in danger by paying for two hours where they work only one hour, and then left the room in his usual way.


The company has a cross-cultural management where the top officials are French, their management style is different they are educated mostly in Grand Ecoles they approach the management decisions in a more academic way than mere practical way. It is also predominant that it would not be efficient if you had to manage a company in Africa which is different and had you had to be more practical in ways of thinking where the money plays a important role. In management intellectual thinking plays a predominant role in

ways of detailed thinking and motivating the staff. In this type of management the necessary elements of team building will be absent.


It if it would have been me in the deciding authority I would strongly, agree with Diop because the company's necessity is to finish the task or meet the demand of the customer which is more important, but in the first hand it s very clear that production levels are higher than the previous levels where they would make more profit than they would be doing at the present occasion. Then in the HR point of view that if Diop had been able to achieve this production levels in a short period of time then what had been the fault. It is because that N'Diaye had made his fellow workers to do so, since he is also a worker he can understand the difficulties of the labour and he had come up with a solution that will benefit the company as well as the worker. The whole point missed by the management is that they had not reached the workers in a more direct way if it had been done earlier the company could have been benefitted earlier.

This type of problems were avoided by SEMCO a Brazilian major company where the company has a diversified business camp, the owner Mr Ricardo Semler has practice by directly reaching the workers to know the demands and the problems faced by any means of communication, he states that it no makes no difference in working week long and creating little values to the consumer and working short time and creating more values to the customer. In his company the workers are free to quote their salary but based on the various factors.


It is believed that India is one of the countries which has vastly diversified cultures and languages throughout the country, where you can experience difference in administration throughout, Govt holidays are also not the same more over. The emerging of the corporate companies have demanded the need of the HRM in India, but it had been a challenging fact to recruit people in India since, the companies which were the end users are western.

Expectedly, there has been a marked shift towards valuing human resources (HR) in Indian organisations as they become increasingly strategy driven as opposed to the culture of the status quo.(1);col1

It is not all about only recruiting the apt human workforce in the in the job but the capable and competitive people to be engaged to the familiar type of work. The Indian people are generally workhorses since they were put in such kind of situation in the past, which had moulded them in such a way.

"The stereotype view, that they are dependent on the state, is proved to be a myth because they have shown through hard work, dedication and enterprise that they are first-class contributors to our country".(2)

There are also ethical difficulties in India for HRM due to different scandals which prevails, the HRM's difficulties in cultural issues are strong family bonding which restricts the people to take certain decisions unanimously. In a recent group work in class we were told to form a group of six to discuss about a case 'where a person is asked to head to a office being a overall manager but he has had experience in software side only, if it happens in your country ', we had nationals from six different countries in that case the persons from the developed countries told that he would not take up that position since he has nothing to lose that he will find a job else where, where I had discussed that I would not rather miss it because in the situation is so in my country I could not avoid considering my family situation. There is a difference of scenario in every other nation.

Indian companies:

If TATA company is put in such a situation as socometal it would have been tackled out of it in a very efficient way since they have different view to their way of doing business they identify business as way of benefitting the company as well as the employee.

"The Tata philosophy of management has always been and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the customers of their products, of the local community and finally of the country as a whole." 

- J. R. D. Tata

The TATA way of thinking towards any resolving any problem would be from the employees beneficial point. The TATA's sources says that Mr Ratan Tata the current chairman of TATA has been working in one of the units of TATA as labour and then he had come up all the way to the managerial position in the company. Tata approaches the motivation and reward policy in a very distinctive manner. TATA Consultancy services used to give appraisals in a more efficient way where they used give the employees cash awards, vouchers and certificates from their clients to the employee where they based on the scale of points where there will be points assigned to them in achievement made on the target required from them. One had told me that they would be organising games for stress busting which are competitive in order to motivate the employee work for the company in a more enthusiastic way. They would also be given a cash discount of a significant amount of rupees for any of the TATA products which they intend to buy. Wherein exposing the employees to such a kind of motivating environment they proved that rewards provokes motivation in any sector since they are multi products related company ranging huge in the variety.


The pay scale is vastly variant in the country as there is a vastly huge kinds of trading in the country and the varied standard of living throughout where there are daily labour in minimum wages as well as high level of pay.

In the country which is abundantly rich in resources in all types it is evident that they also follow a closely knitted family kind of relationship they are rich cultures and they have provided to the world a good number of political leaders like Nelson Mandela, Martin Luther King and they have succeeded in their efforts only by distinctively following and engaging their cultural benefits. In Africa they have a social philosophy of UBUNTU , Ubuntu, which is a way of being, a code of ethics.

Ubuntu calls upon us to believe and feel that:

Your pain is My pain,

My wealth is Your wealth,

Your salvation is My salvation. (3)

This clearly explains that the strong cultural bonding exists in Africa and why have been the leaders so successful in fulfilling their destiny. There have been so many significant ways in which they have expressed the feeling of UBUNTU. It was on the basis of UBUNTU was that N'Diaye had agreed to Diop just for the betterment of his fellow workers.


In view to the betterment of the company, they should appoint a manager who can not only speak a few words of the foreign language but also who can get to know the cultural practices of the particular country and also who can get to the bottom of the problem to evaluate the causes and also device a plan to evacuate the problem in whatever way it could be resolved. 'To succeed across borders requires more than a few words of a foreign language - it needs an authentic interest in other cultures'. (4)

A term 'transcultural executive' is used by Karl Moore who is a professor of strategy and leadership in McGill University Montreal, the manager who has a roots of one culture where and had travelled the world.


Taking into consideration of the facts proved that reward provokes motivation the theories are just theories which cannot be implemented practically in the structure of any business whatsoever in the case study being discussing the factors of French management styles the which had been proved to be incorrect which the manager had not succeeded in persuading the workers work more for any type rewards it may be concerned. In the world of business it is evident to be that the end result of the product may be according to the motivation and the reward achieved from it, as any industry is employee based the employer cannot ignore the benefits of the employee if he wants make profitable business, but in an organization you cannot differ the salary for those who work in the same designation though you can give an amount as a bonus one time if the employee deserves it, but it cannot be routine pay, since it will de-motivate the other workers. The theories cannot be relatively appraised nor completely ignored. 'The theories are only a scientific relativity, which cannot be completely applied to attain practicality in profit'.

The content theories of motivation explains that what is it that motivates people at work and how are they prioritised if it is incentives or satisfaction, but in the most countries of the it always fails to be proved since the pay is not sufficient enough to be thought of the work satisfaction. In my organization we have a customary of giving them new clothes on the occasion of a Hindu festival with the bonus, when they recently wanted cash instead of clothes this clearly states the need of the employee from a developing nation. In countries like Africa and India pay is a sufficient reward than work satisfaction in dominant cases.


To gain an rewarding outcome to the employee as well as employer it is best to leave rewards in the form of pay, since money is being the predominant source in any operation it is best appreciated that way. In related to the case study the organization which has emerged from an another country with different culture which have set it's unit in an country which has different culture, it should appoint an manager who is a trans-cultural and have cultural roots in that particular culture and have an multicultural experience, by this move the company would be able to solve the issues internally and in a smooth way. To maintain a personal relationship with the employees so that the organization would be solving the problems in a easy way without disturbing the emotions of the employees. To maintain a competitive rate of pay so that to have the best possible work force available.

An organization should identify and compensate with the best possible reward to the employees who is eligible. The motivation is a another key factor which does not fail to support good production. A company's growth is rather determined through the interest of the employee in the company as well as the employer's interest on the employee, this rejenuvate's a lot plus factor to the company. A company's responsibility is not low lied they should also look on to the welfare of the employees. To maintain a cultural harmony in the organization, it would be more enthusiastic if any organization to follow the practice of UBUNTU within the organization since it is about the culture of sharing one's pain.

"[Our treatment of our workers] has given us a great deal of harmony," Tata answered. "We have had no violent strikes. In the long term, our workers have been a great asset."(5)

This was the TATA way of doing business of having respect to their workers and which have driven them from a cloth mill business from a small place in India to one of the major giants in the automotive industry.