Employee Demotivation, Justification Report

EmployeeDemotivation, Justification Report

Evaluationof Alternatives

Fewcompanies evaluate their attempts at employee motivation, arguingthat that many of the practices in these companies are in use becausethey have always been there, because similar companies do so, or dueto lack the correct information, resources or evaluation tools todetermine the efficiency of their reward practices.[ CITATION Arm09 l 1033 ]

  1. Employee training and development

Mostresearchers believe that intrinsic rewards such as employee trainingand development are more efficient in motivation of employees. Someresearches posit that the monetary rewards only serve as a platformfor motivation, pointing out that what really change the employee’sorganizational behavior is the intrinsic rewards. Mostemployers have found that employer benefits such as training anddevelopment go to great lengths towards attaining self-actualization[CITATION Jen07 l 1033 ].

  1. Staff motivation through Monetary Rewards and leisure Arrangements

Accordingto Pinder, monetary rewards are indeed effective. They determinedthat money matters to most employees because of the figurative andinstrumental significance it bears [ CITATION Pin08 l 1033 ].

Toevaluate the effectiveness of these two alternatives, the researchconsiders their adoption in six (6) companies similar in size and inthe same industry as my employer’ firm (Company A). The evaluationenlisted the help of the human resource managers from these sixcompanies selected on basis of their size, industry, and theirevaluation of their staff motivation strategies. The criteria forsuccess shall be broadly defined by increase in productivity, Costimplications of the alternative, effect of the alternative on thecompany image, practicality of the alternative in company A, workermorale, and feasibility. The chart below defines the criteria furtherand eases analysis.Findingsand Analysis

ProductivityEmployeetraining and development resulted in improved productivity and thismay be due to the increased skill among the employees and finding newand easier ways to carry out their normal tasks. Upon completion oftraining, some employees undertook new tasks that might have takenaway the monotony, improving their productivity.The use ofmonetary rewards resulted in productivity in the first few months butthe increase fizzled out fast in all the companies that took thisapproach.CostEmployeetraining lead to very high costs in all the companies that adoptedthis approach. Although the use of monetary rewards had a similarcost implication, the cost increase was considerably lower.

Thecompany image

Thecompany image improved considerably in both approaches in all sixcompanies.


Outof three companies that adopted the employee training approach, twoindicated low practicality. All three companies that converselyadopted the monetary incentive approach described the practicality ofthe approach as moderate.


Whileall three companies pointed out the difficulty in measuring thiscriterion, they pointed to a marked increase in employee morale oncethey started training and development programs, and attributed theirviews to factors such as reduced absenteeism and staff turnover. Thethree companies that had adopted monetary rewards as a way ofmotivation also reported increased morale.


Companiesthat used employee training to motivate employees reported the totalfeasibility of this alternative as “low to moderate,” indicatingless feasibility as compared to the use of monetary rewards, whichwas ‘moderate to high” according to all three companies.

Figure1: Alternatives Analyzed by Criteria


Training Option

Lack of Training Option


Very high

Negligible increase


Very high


Company Image


Negligible improvement

Employee Morale


Negligible increase


Moderate to High


Total Feasibility of Alternatives based on criteria

Moderate to High

Low to Moderate


Armstrong, M. (2009). A Handbook of Human Resource Management Practice (11 Ed.). Cambridge, UK: Kogan Page Limited.

Jensen, D., McMullen, T., &amp Stark, M. (2007). The Manager’s Guide to Rewards: What You Need to Know to Get the Best for – and from – Your Employees. USA: Hay Group Inc.

Pinder, C. (2008). Work Motivation in Organizational Behavior. (2 Ed.) . New York and Hove: Psychology Press.