This study is to observe the different methods of motivational strategies and how they affect productivity in the workplace. A manager in IKEA should be aware of different techniques which can be used in order to reward employees for a job well done. It is crucial for businesses to analyze these different methods and implement ones that work best for them. There are extrinsic and intrinsic rewards, positive and negative motivators, and methods for individual and team or group rewards.
Three months back, I worked for a very large company (IKEA) USA that utilized the different motivational strategies in place to increase productivity. It was a line of work where cross-selling was a main focus. One of the motivations used was the reward method and this included both monetarily and award basis. Another method used was to train employees in leadership and management programs, to help them to achieve success in the workplace. They also built inter-departmental teams to assist employees to better understand the various areas of the company and how each department was inter-related to each other. The IKEA focused on group or team rewards and found that this was the most efficient alternative. However, other competitors have determined that group rewards create hostility between higher and lower producers within the group because all members of the group receive the same rewards, regardless of performance levels. It has been said that reward programs based on individual performance has the highest probability of job satisfaction and productivity.
Offering bonuses to each employee is one example of monetary reward in IKEA. Bonuses had a certain criteria that needed to be met such as profitability, products sold, building of client base. The criteria levels help encourage employees to perform a little more aggressively to meet these quotas, goals put into place or finding a way to save the IKEA money. When goals are met, the company rewards its employees generously with a bonus. Another type of reward type is allowing the employee to have an extra vacation day, wear jeans for a week, leave ½ day early for two days in a row and/or have lunch with the manager. The tangible rewards will entice the employee to perform at his or her highest level and both the employee and the company will be the winners. The IKEA knew that the bonus would cost the company money however; the profitability to the company is a highly motivated employee. A negative affect could be that an employee might become unmotivated or that he or she is being treated a bit childish. Employees need positive reinforcement and feedback to make room for improvement and to encourage them to strive for the goals that are expected from them. Managers and employees do not carry the same value system and what will create improvement and goal-oriented behavior. Studies show that managers deem extrinsic awards as a more powerful method of motivation; however, employees seek appreciation above and beyond anything ...