Human resources serve as the foundation for an organization’s long-term competitive advantage. Organizations must establish strategies to obtain and retain competent workers since they operate in a dynamic and competitive business environment (Vu & Nwachukwu, 2020). These days, human assets are regarded as the most significant asset of any firm, and motivation is required to achieve efficient and effective results from human resources. As a result, several theories, such as goal setting, expectation theory, and job enrichment theory, have been established and implemented worldwide to reward employees and increase performance and organizational outcomes. This study analyzes these approaches’ effects on employee rewards and how they can affect organizational effectiveness, performance, and competitiveness.
Hackman and Oldham’s job enrichment theory is the first process of the reward theory of motivation. According to this theory, employees are motivated to the extent that they find their work meaningful (Chukuigwe, 2022). This can be done by giving employees more freedom and discretion in their work, providing performance feedback, giving them a chance to use a variety of skills, identifying the role their job plays in the larger work context, and being aware of the significant impact their work has on other people’s lives. This theory is founded on individualist presumptions about workers’ cravings for freedom, independence, and challenge (Chukuigwe, 2022).
Tilahun (2021), on the effects of employer-employee relationship on job satisfaction in the selected manufacturing companies in Debre Berhan town, observed that more significant job enrichment increases motivation and happiness. Nonetheless, Low absenteeism, good performance, and low turnover are typical outcomes of enriched employment. He also found that improving certain aspects of a person’s profession can change their psychological state to enhance their success at work (Tilahun (2021). when workers’ occupations are enhanced, there is a favorable association between participation and goal completion (Ozturk, Karatepe, & Okumus, 2021). Additionally, job enrichment improves employee performance and motivation at work, increasing their likelihood of succeeding in their goals (Ozturk, Karatepe, & Okumus, 2021).
Moreover, the study by (Zaraket, Garros, & Malek, 2018) found that job enrichment affects employees’ motivation in the middle of their careers. In terms of job enrichment, hygiene and motivating aspects are vital components. Their research aims to demonstrate that, in addition to this, vertical job enrichment increases the power, responsibility, and knowledge associated with the job. This increases the motivational factors associated with the job, such as accountability, accomplishment, development, and knowledge, and consequently increases employee motivation and job satisfaction (Zaraket et al., 2018).
Furthermore, other researchers have shown that job discontent and low commitment decrease when employees’ occupations are improved (Prentice & Thaichon, 2019). Organizational performance becomes hazy when an employee is dissatisfied, disgruntled, or disillusioned with how things are done (Prentice & Thaichon, 2019). Additionally (Jibril & Yeşiltaş, 2022) found that Internal work motivation, increased dedication, staff retention, job satisfaction, distinctive and competitive edge, and improving workplace opportunities are all examples of jobs that have statistically significant and meaningful effects on business success.
According to Dahou & Hacini (2018), organizations that want to perform better and have a competitive advantage must give their workers more flexibility, autonomy, authority, and responsibility. This always helps to lessen rigidity, managerial monotony, a lack of creativity, and employee unhappiness. The strategic driving force for promoting harmonious coexistence, affection, recognition, friendliness, and freedom essential for effective performance and increasing organizational effectiveness has frequently been seen as employees’ autonomy and control Dahou & Hacini (2018),
The second theory is Vroom’s expectation theory. According to the theory, Vroom argued that employees are motivated to the extent that their expectations are realized in the following ways. First, if they put forth enough effort, their job performance will be satisfactory. Second, if they execute at the expected level, there will be some results. Third, the outcomes will be highly valence or appealing (George & Humphrey, 2021). Although no systematic research has been conducted to assess the theory’s validity across organizational cultures, it appears to be more applicable in individualist companies than in collectivist ones(George & Humphrey, 2021).
Employees are motivated in individualist organizational cultures if there is a high likelihood that they will achieve their expectations (Rivai, Gani, & Murfat, 2019). However, motivation is correlated with the likelihood that “major others” will be met in collectivist organizational cultures. Employees in fatalistic organizational cultures have an “external locus of control,” meaning they do not think they have any control over what will happen. Expectancy theory may not be helpful in these cultural circumstances, then. When appropriately applied across the organizational culture, expectancy theory can aid managers in understanding why people choose particular behaviors. As a result, businesses that use performance-based pay might anticipate improvements. Performance-based compensation can tie benefits to how many things workers generate. As a result, morale, involvement, quality, productivity, and attraction may increase (George & Humphrey, 2021).
Another process theory of motivation is the goal-setting theory of Locke and Latham. According to the theory, goals are motivating, and some goals are more compelling than others because of their unique traits (Locke & Latham, 2019). Making an action plan is a component of goal setting. These plans of action inspire employees and direct teams toward the desired outcome. The “SMART” criteria are one such criterion for defining goals. S and M typically stand for specified and measurable. The remaining letters are feasible, relevant, and time-bound in the most typical rendition. Setting goals has a more substantial impact on staff performance (Locke & Latham, 2019).
Challenging goals can be accomplished if given direction and a benchmark by which progress can be measured (Locke & Latham, 2019). Encouraging workers to concentrate on particular goals can increase motivation and performance, as Latham & Locke (2006) have well-documented in the academic literature. Systems for performance management are used for monitoring. These technologies give users the ability to direct and improve their performance. The employees’ efforts to accomplish these goals are subsequently increased. Then, workers put in extra effort to create fresh approaches to deal with challenging obstacles to goal achievement. Leaders can increase goal commitment by effectively communicating their goals and encouraging their followers to support them.
Employees are motivated and excited when their goals are successful. It aligns with the organization’s values, goals, and strategic advantages. Setting goals effectively encourages coordinated activity aligned with the organization’s vision (Dahou, K., & Hacini, 2018). When employees encounter a challenging challenge, it motivates them to give their all instead of just formulating plans for a challenging performance goal. This shift in perspective leads to better performance. This is because a performance target makes employees want to perform at their peak, which causes them to search for novel techniques. This may lead to performance anxiety and evaluative pressure. Thus, the combination of performance management systems with a goal- setting theories affects employee performance. The results are used as a guide when establishing goals at higher levels. Researchers contend that firms should boost workers’ self-efficacy beliefs through empowerment, coaching, and mentorship if they want participatory goal setting to be motivating in developing nations.
Conclusion
Due to the dynamic and competitive nature of the business environment in which they operate, organizations must develop strategies to attract and keep qualified employees. Employee motivation and job performance are both enhanced by rewarding and motivating them. Employees can utilize their skills, knowledge, and talents obtained on and off the job with the help of effective reward systems. Therefore, the process reward theories of motivation play a crucial role in inspiring workers to achieve at their highest level through a shared appreciation of skill diversity, job identity, task relevance, and autonomy.
References
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Dahou, K., & Hacini, I. (2018). Successful employee empowerment: Major determinants in the Jordanian context. Eurasian Journal of Business and Economics, 11(21), 49-68.
George, A., & Humphrey, O. O. (2021). An examination of the application of Vroom’s expectancy theory in the State Civil Service Commission South-South Nigeria. British Journal of Management and Marketing Studies, 4(2), 1–8.
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Prentice, C., & Thaichon, P. (2019). Revisiting the job performance–burnout relationship. Journal of Hospitality Marketing & Management, 28(7), 807-832.
TILAHUN, B. (2021). THE EFFECTS OF EMPLOYER-EMPLOYEE RELATIONSHIP ON JOB SATISFACTION IN THE SELECTED MANUFACTURING COMPANIES IN DEBRE BERHAN TOWN (Doctoral dissertation).
Vu, H. M., & Nwachukwu, C. (2020). Strategic human resource management, organizational culture, and academic staff retention: A literature review. Economics Management Innovation, 12(2), 5-12.
Zaraket, W., Garios, R., & Malek, L. A. (2018). The impact of employee empowerment on organizational commitment. International Journal of Human Resource Studies, 8(3), 284-299.
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