Unlike in the task behavior, the relationship behavior uses a two way channel of communication. Here, the leader plays both the role of a facilitator and the listener. Therefore, an effective leader is the one able to determine the extent of task behavior and relationship behavior to accommodate based on employees readiness. In this context, readiness refers to the employees ' ability and willingness in directing their behavior towards the task at hand. Ability defines the knowledge, skills and experience of followers whereas willingness the confidence, motivation and commitment possessed by the followers.
The responsibility of leader is to articulate what behaviors are required and what will be the rewards for accomplisher and also to provide feedback for subordinate’s behavior. Rewards are awarded to those followers who comply with behavior requirements. In transactional leadership, leaders have the aptitude to evaluate the needs and aspirations of employees in exchange of performance of them and clearly exhibit the ways in which these needs and requirements can be fulfilled (Jung, 2000-2001). In transactional leadership, rewards and discipline are administered according to adherence or deviation from instructions. It is reported that interests of employees, who auspiciously succeeded in fulfilling the commitments of their leaders or organization, are accommodated by giving contingent incentives, admiration and promises (Bass, 2000).
The strength of a tendency to act in a certain way depends on the strength of an expectancy that the act will be followed by a given outcome and on the value or attractiveness of that outcome to the person (Lawler,
Teamwork: Teamwork in a company is vital for the success of a company. Financial incentives like bonuses can inhibit teamwork since under such schemes, individuals may be rewarded rather than teams. For example, several firms give bonus on bases of the amount of work performed by the individual (Roland, 2003). This means that employees would eventually learn to hoard work than to share it for the welfare of the organisation and in this way, the overall productivity of the company may be affected. Burn-out of employees: Another disadvantage associated with the financial reward system is that it may lead to physical and moral burnout where the employees may work extra hours to earn the money and may eventually be frustrated by the monotony of the work situation.
Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model Commitment and motivation are related concepts applied towards organizational work. Motivation can be defined as forces originating within and beyond an individual to initiate behaviour and its form, direction, intensity, and duration. Whereas commitment can be defined as a binding force towards a goal. John P Meyer’s and Thomas E. Becker’s integrative model is based on the foundations of J. P. Meyer’s and L Herscovitch’s (2001) model of workplace commitment and E.A Locke’s (1997) work motivation process. Motivation and commitment are both forces which influence behaviour.
Stryker likely gets their raw materials from multiple suppliers and if they are dominate enough, the suppliers can reduce the marginal earnings of the company. Stryker can reduce this risk by experimenting with new product design, having an efficient chain of suppliers, and seeking out suppliers whose business depends more on Stryker than vice versa. Buyer Power Buyers can put pressure on Stryker because they search for the best quality materials, yet they want to pay the least amount they can for it. This causes difficulty in sustaining profitability over a long period of time.
Incentive pay plans can be based on the performance of the individual, team, business unit or company. In the process of CHOKA designing such a reward system, some basic factors need to be considered in the design process. Factors that CHOKA enterprises must consider in the design of such a reward system to ensure its success are; plan concept and objective in mind,determine the type of incentives plan,defining the job design, desired results and expected behaviors,
Human resources personnel are often tasked with using employee and organizational objectives to identify and implement the best employee incentive programs. An effective and efficient incentive system must seek to address employees’ skills and motivation, acknowledgement of employees’ successes, a clearly-defined set of goals, and a means for assessing progress. These systems should be tailored to the needs of the organization as they are often implemented to prevent and overcome poor performance, failure in meeting organizational goals, poor morale, increased turnover, and the stress of increased demands on
In exchange for their loyalty towards the orgnization and their effect for their work, employees form expectations. To improve the quality of their work, to realize their career goals and to ensure that they work efficiently, the organization has to mobilize various incentive mechanism. Organizations can support their employees by establishing properly working human resources procedures and performance evaluation systems, concentrating on career management activities and improving the employees’ physical working conditions. Organizational support theory explain the psychological process underlying POS as follows: Firstly, POS in the basis of reciprocity norm creates a feeling of necessity concerning the organization working towards its goals and considering the
The level of employee commitment helps to ensure successful implementation of the organizational strategies, plans, and actions. Employee commitment can achieve employee work. This is because they have the discipline, values and ethics as well as having a positive attitude to execute their work. There is both theoretical and practical importance of conducting this study.
The case analysis will develop an understanding of Engstrom’s organizational issues of the company. The analysis will examine the impact of results from organizational theories and concepts that will explain the behavior at Engstrom. Furthermore, there will be a clear direction of elements for and solution for Engstrom to implement within the organization. Explanation In 2005, the Engstrom company was facing an economic downturn.