Research And Analysis Of An Organization's Incentive Plan

Research and analysis of an organization's incentive plan to motivate employees

For this assignment, you are to use the text, the Argosy University online library resources, and the Internet to research the use of incentives in motivating employees. Find an organization with a form of incentive you consider highly motivating. Find an organization within your current industry or an industry where you would like to be employed in the future. Submit a report in which you describe, analyze, and evaluate the incentive plan of your chosen company. Include the following in your report:

1. Description of company, industry, and incentive plan.
2. Distinguish why you think this particular plan is highly motivating and explain how it stimulates employee productivity. Connect the plan to one or more models of motivation.
3. Evaluate how well the incentive plan supports a well-aligned compensation plan and how the plan aligns the employees’ efforts to the organization’s mission and objectives.
4. Explain how this plan helps with the supervision, retention, and recruitment of employees.
5. Determine which of the following you feel would be the most valid format for performance appraisal to use with this incentive plan—standard ranking, paired-comparison ranking, standard rating scales, behaviorally-anchored rating scales, Management by Objectives, or essay. Justify your responses with reasons and examples. Cite scholarly sources.

To complete this assignment, submit a 3–5 page report in Word format. Apply APA standards for writing style.

Paper For Above instruction

The strategic management of employee motivation through effective incentive plans is a cornerstone of organizational success across industries. Incentives serve as vital tools that organizations leverage to enhance employee engagement, productivity, and retention. This paper aims to analyze a highly motivating incentive plan implemented by a renowned company within the technology sector, elucidate why it is effective, and explore its alignment with organizational goals, the implications for supervision and retention, and the appropriate performance appraisal methods to reinforce the plan.

Introduction

Incentive plans are designed to motivate employees by rewarding performance in a manner that aligns individual and organizational objectives (Gerhart & Rynes, 2003). The selected organization for this analysis is Google Inc., known for its innovative and comprehensive incentive strategies that foster a high-performance culture. The company's approach integrates monetary, developmental, and recognition-based incentives, which collectively contribute to an engaged and productive workforce.

Description of the Company, Industry, and Incentive Plan

Google Inc., operating in the technology and internet services industry, has established a reputation for attracting top talent by cultivating a motivating work environment. Its incentive plan encompasses competitive base salaries, performance bonuses, stock options, and a range of non-monetary benefits such as professional development opportunities and wellness programs. The plan emphasizes innovation and collaboration, rewarding employees who contribute significantly to organizational growth and user satisfaction.

Motivational Effectiveness and Connection to Motivation Models

The incentive plan at Google is highly motivating because it appeals to intrinsic and extrinsic motivators. Employees are recognized not just for the financial rewards but also for their contributions to a stimulating work environment. The plan aligns with Herzberg’s Two-Factor Theory, which posits that motivators such as achievement and recognition lead to job satisfaction (Herzberg, 1966). Google’s emphasis on meaningful work and recognition enhances intrinsic motivation, while financial incentives address extrinsic motivation. Such a comprehensive approach boosts employee engagement and productivity.

Alignment with Compensation, Organizational Mission, and Objectives

The incentive plan supports a well-designed compensation structure by ensuring that rewards are linked to performance metrics aligned with organizational goals. Google’s incentive mechanisms prioritize innovation, customer satisfaction, and market expansion, which are central to its mission to organize the world’s information and make it universally accessible and useful (Google, 2023). Performance-based bonuses tied to project milestones also promote effort alignment, ensuring that employee activities contribute directly to organizational success.

Impact on Supervision, Retention, and Recruitment

This incentive plan facilitates effective supervision by establishing clear performance expectations tied to rewards, enabling managers to monitor progress and provide targeted feedback. Furthermore, the plan plays a significant role in employee retention by fostering a sense of value and achievement, reducing turnover rates (Deci & Ryan, 2000). Google's reputation for rewarding innovation and providing growth opportunities enhances its attractiveness as an employer, thus improving recruitment outcomes.

Most Valid Performance Appraisal Method

Among various appraisal methods, Management by Objectives (MBO) is most suitable for Google’s incentive plan. MBO emphasizes setting specific, measurable goals jointly agreed upon by employees and managers, directly linking performance to organizational objectives (Doran, 1981). This method encourages employees to focus on targeted results, aligns individual efforts with company strategy, and provides a clear basis for performance evaluation and rewards. For Google’s innovative environment, where goal clarity and alignment are crucial, MBO fosters accountability and motivation effectively.

Conclusion

Incentive plans are instrumental in shaping employee motivation, productivity, and organizational success. Google's comprehensive incentive strategy exemplifies how monetary and non-monetary rewards can motivate employees intrinsically and extrinsically. Proper alignment of these incentives with organizational goals and effective performance appraisal techniques such as MBO can significantly enhance workforce engagement, retention, and recruitment. Organizations seeking to motivate their employees should consider adopting integrated incentive systems backed by sound motivational theories and aligned with strategic objectives.

References

• Doran, G. T. (1981). There’s a S.M.A.R.T. way to write management’s goals and objectives. Management Review, 70(11), 35-36.
• Deci, E. L., & Ryan, R. M. (2000). The" what" and" why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.
• Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, Practice, & Evidence. In G. R. Ferris (Ed.), Research in Personnel and Human Resources Management (pp. 157-204). Elsevier.
• Google. (2023). Company information and values. https://about.google/our-story/
• Herzberg, F. (1966). Work and the Nature of Man. Cleveland: World Publishing Company.
• Latham, G. P., & Pinder, C. C. (2005). Work motivation theory and research at the dawn of the twenty-first century. Annual Review of Psychology, 56, 485-516.
• Milkovich, G. T., & Newman, J. M. (2008). Compensation. McGraw-Hill Education.
• Podsakoff, P. M., MacKenzie, S. B., & Hui, C. (1993). Organizational Citizenship Behaviors and Sales Performance. Journal of Applied Psychology, 78(6), 945-955.
• Vroom, V. H. (1964). Work and motivation. New York: Wiley.
• Wright, P. M., & Nishii, L. H. (2007). Strategic HRM and Organizational Behavior. In J. R. Schermerhorn (Ed.), Organizational Behavior (pp. 377-408). Wiley.