Also they feel entitled to receive bonuses. Therefore these kinds of programs have little to no effect on the actual performance of employees. Nevertheless a lot of money is spen d. Motivating employees and paying them for their contribution to the process, asks for more then a pay system based merely on equity which is based on seniority and job responsibilities. Mostly, on an internal comparison of responsibilities or a common set of job evaluation factors.
Many organizations have some form of variable pay.
These kind of variable pay systems have little to no effect on the motivation of employees. For someone to get above the average raise for the company, someone else must get below. There is no way the entire team can win. Wandering' Around does not influence performance A third way to reward employees is by verbal, visible and non-verbal feedback. The annual performance appraisals are not specific and an impossible instrument for motivating employees and directing behaviors.