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Words: | Submitted: Tue Jun 20 2006
... have a "staying power". Employees will forget this reward in two weeks. Furthermore, financial rewards cost companies a lot of money. Maintaining the same impact on employees requires increasing monetary rewards. Spitzer (1996) even argues that there is no correlation between money and high quality performance. Money only can increase the quantity of performance at simple tasks. Cieri and Kramar (2003, p.475) claim "most jobs have no physical output". Therefore, whether the performance of employees' is good or not can not only be scaled by the quantity of output. What do researches say about monetary incentive? Some researches suggest that there is a positive correlation between monetary incentive and employees' performance. The research conducted by Stajkovic and Luthans (2001) shows that systematic monetary incentive has a more powerful impact on employees' performance than the routine pay, and there is a strong correlation between money and performance. Locke (cited in Cieri, 2003, ...
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