Lesson 28º









In all organizations it is important to reward achievement, creativity, innovation and dedication.

The reward, as recognition of good work, has 3 functions:

Acknowledgment: if someone has carried out an outstanding job, it is fair to reward them.

Example: the reward shows the rest of the staff that this is what the management expect from them, and the work levels the management consider excellent.

Motivation: the employees will try and give their best with the aim of reaching this reward.

So that the reward fulfils these functions it should be:

Fair: the leader should reward the people that really deserve it. The employees have to see that it is granted in an objective way, that there isn’t any favouritism.

If the leader rewards people that don’t deserve the reward, he will loose his value and generate confusion. The employees will not know what behaviour is required to obtain it.

Besides, the leader has to avoid comparative disagreements: his concession and the amount should be adjusted to the main objective.

Transparent: the prize should not only be fair but should also be given so that nobody doubts its justice (the management should communicate the motives of the award).

Immediate: the reward should be given as soon as it is deserved, once the prized action has taken place. Rewards need to be given immediately not when everyone has forgotten about the good work.

The employees have to see how the management deliver the rewards quickly, just as they themselves demand things quickly.

Generous: the reward should be sufficiently attractive (so that the employees believe that it is worth fighting for.

The management can not be stingy when giving the reward, as this will generate disenchantment (“very demanding when asking for things, but not very generous when rewarding”).

Public: so that the reward fulfils its function, it is necessary to let the employees know what the prizes are and what the motives are.

People need to know what to do in order to achieve them.

Finally, point out that the prize should be administered with restraint.

If the rewards are handed out frequently they will turn into something routing and they will loose their value. A reward has to be something exceptional.