Band 4+: Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others. To what extent is this style of management effective? Are there better ways of encouraging employees to work hard?

There are few entrepreneurs who rewarded their employees for their extraordinary performance by offering them additional financial benefit such as, incentive, which sometimes influence their other members as a negative way. I completely think that this exercise is so much effective for the management, which reason will outline into the further paragraph and give suggestion how to encourage them to do work hard.

Giving a financial gift to the staffs for their outstanding work will make competitive environment in the workplace. Employees do the job for getting the salary, which they get monthly basis. With the basic compensation, they just try to fulfill their duty. They never try to do exceptional things for their organization. On the other hands, by offering them extra money, which is not included into their basic payment, this is the only payment, they will get, if they are able to produce exceptional result for their enterprise. Also, this may create competition among the official personnel to achieve this, which actually quite helpful for the industry due the all employees are trying to give his better performance and try to avoid negligence about their duty.

Making employee as a stockholder for their great task will encourage them to do work hard. When employee does their duties for the salary, they just do the work for the personnel interest. They never think about the welfare for the business. But giving them company’s profit share for their better performance, they feel that they are owner of the organization and profit or loss, which company achieve has much effect on them. So, they are trying to do hard work for the welfare of traders as their profit share will be affected due to the losses.

To conclude, there are many organizations who give extra money to their subordinates for their unique contribution. This practice may have some negative impact but according to me, it is highly inspirational things that the company has done. Offering some portion ownership to the employee for their performance will realize them, they are essential assets for the organization.