EXECUTIVE INCENTIVES

Executive Incentives



Executive Incentives

Introduction - Theoretical Framework and Background

I have chosen Hertzberg two-factor theory of motivation as a theoretical model for discussion pertinent to the issues related with executive or employee incentives management. In modern management theory, there are a variety of concepts aimed at the recruitment of staff and executives to seek their company. These concepts not only serve as motivational guidelines for the purposes of performance enhancement, but also the loyalty and retention of important employees to the company and the integration of workforce essential to change projects. Many of the modern concepts of human resources are used to build these motivation theoretical foundations, so the knowledge pertaining to these theories is essential for understanding the respective models and instruments. The proceeding part of this report provides a composite and comprehensive presentation of the most popular motivation theories. In addition, Hertzberg's theoretical approach of motivation is subjected to scrutiny. Special attention is paid on the practical implementation and feasibility of Hertzberg's theory. In the present era, the most important source of innovation for any organization is its workforce or employees. High productivity in turnover not only depends upon new technologies, but also upon the attitude of the individuals employed by the organization. Without a doubt, an employee who is willing to get involved in the work and who can considerably align with the goals of the company can be productive and innovative than an employee who only watches the clock and wastes time during the workday. (Amershi, 2000, Pp. 113-130)Especially in recent years, the term "motivation" is considered as a core point of discussion in relation to employee incentives and retention of the significant human capital. For some, the term motivation relates with the modern technology. The modern printing technology has put the authoritarian leadership to a superfluous pressure, while others see it as a tool for manipulation or exploitation. For others, motivation is simply one of the numerous management or cooperative principles. The fact is that in each case that in a time of increasingly sharp and intensifying global competition, almost all companies are searching for ways to increase the commitment of employees to enhance their level of motivation and boost the productivity of the projects efficiently. For managers, this means that in addition to the classical management functions such as staff recruitment and selection, planning, organizing, coordinating, and communicating organizational goals to them, they should make sure that their employees are motivated by providing them suffice compensation and benefits. (Davila, 2004, Pp. 443-464)

Before moving towards the critical analysis of the theories presented upon the topic of discussion, it is important to understand the various interpretations of the term motivation. Motivation can be defined as the totality of the motives of an individual. It can also be stated that the factors that instigate people towards a specific behaviour or attitude involving a sense of personal interest, objectives, or self-satisfaction that results in the attainment of desired goals, constitute the motivation of an ...