to be effective, a pay-for-performance system has to meet the
following stringent conditions:
■ There must be a clear link between performance and reward.
■ The methods used to measure performance should be per -
ceived to be fair and consistent.
■ The reward should be worth striving for.
■ Individuals should expect to receive a worthwhile reward if
they behave appropriately.
As a manager you can make sure that the company’s reward
system is applied in your part of the organization in accordance
with these principles.
NON-FINANCIAL REWARDS
Non-financial rewards can be focused on the needs most people
have, in varying degrees, for achievement, recognition, responsi-
bility, influence and personal growth. You will be in a position to
provide or withhold these rewards for those of your staff who
are doing well or badly.
Achievement
The need for achievement is defined as the need for competitive
success measured against a personal standard of excellence.
Achievement motivation can take place by providing people
with the opportunity to perform and the scope in their jobs to use
their skills and abilities.
Recognition
Recognition is one of the most powerful motivators. People need
to know not only how well they have achieved their objectives or
carried out their work but also that their achievements are
appreciated.
Praise, however, should be given judiciously – it must be
related to real achievements. And it is not the only form of recog-
nition. Fin ancial rewards, especially achievement bonuses
awarded immediately after the event, are clear symbols of recog-
nition to which tangible benefits are attached, and this is an
How to Motivate People 227