Answer to Question #278146 in Management for Craniax

Question

You’ve just been made a manager in Sweden, known for its institutional collectivism. What incentives and reward structures would you use to motivate your employees? 

Answer 1

If the higher-ups offer proper rewards and incentives to their employees in a workplace, it doesn’t only benefit the employees and it also benefits the employers. Although some employers may use the terms rewards and incentives interchangeably, there are some differences between the two. Rewards are the items and experiences that employees earn for meeting goals, turning in exceptional work, being a team player or any other recognition parameters that a manager puts in place. Rewards can be monetary or non-monetary. Incentives on the other hand are something you receive for completing a specific action. They frequently have a time period associated with them, as in the employee must achieve an action or goal by the end of the third quarter of the year to be eligible for the incentive. Incentives are goal-oriented and are usually combined with a reward. They are often given to employees when they have reached or exceeded a goal.

 When employees get proper incentives and rewards in their workplace, the business experiences increased employee loyalty. They will also see an increase in productivity, revenue, and growth. The following are some of the incentives and reward structures that I would use to motivate my employees; employee stock options, profit sharing plans, paid time off, bonuses and cash awards. These incentives encourage friendly competition between associates when linked to job performance. Monetary rewards motivate employees to produce optimally.