Designing appropriate rewards systems (3),”- Open-book management: a motivational approach in which an organization’s financial statements are shared with all employees. The goal is to let employees think like owners and see the financial impact of their decisions. They will see the link between their efforts, level of performance and operational skills.- Employee recognition programs: programs that consist of personal attention and expressions of interest, approval, and appreciation for a job well done. These programs can be both formal and informal, and recognition can come not only from managers, but also from other employees. Consistent with the reinforcement theory, rewarding a behaviour with recognition immediately following that behaviour is likely to encourage its repetition. – Pay-for-performance: variable compensation plans that pay employees on the basis of some performance measure. This is most compatible with expectancy theory, individuals perceive a strong relationship between performance and rewards for motivation to be maximized. It forces the employees’ attention and effort towards measure, which reinforces the continuation of that effort. However
employees must clearly understand how performance translate into money.”