Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others. To what extent is this style of management effective? Are there better ways of encouraging employees to work hard?

Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others. To what extent is this style of management effective? Are there better ways of encouraging employees to work hard? - Ielts Essay 

Ielts Essay Rewarding Employees 

The priority of corporate has shifted to extracting maximum output and efficiency out of the employed workforce. To execute this task more efficiently, companies have started introducing several innovative initiatives, like rewarding outstanding performers with performance linked financial incentives. This aspect has been regarded as a positive step by some management experts, while some consider this as an inappropriate way of encouraging employees.

The modern management concepts profess offering financial rewards to outstanding performers in various ways, including disbursing extra money in form of performance linked incentives to excellent performers.  Monetary incentives act as major stimulants for many efficient workers, as the beneficiaries are able to participate in their families with more financial resources. . This factor, in turn helps in enhancing mental preparedness of the beneficiaries, and encourages them to perform even better next time. 

Besides having a direct impact on the performers, the monetary bonus successfully stimulates other employees too, as they also feel inclined to making substantial improvements in their productivity.  This helps in enhancing the workforce competence of the companies, and they are able to derive optimized performance from employees.

On the contrary, several drawbacks are cited by the critics of theory of compensating exceptional performers with financial bonuses. Although financial benefits do encourage certain people, but it has often been observed that this kind of policy can generate jealousy among co-workers, which in turn, can adversely affect the work culture of an organization. Some of the employees who also give their best at work, but rarely make it to top because of being involved in departments where gauging output is rather difficult, end up feeling ignored and alienated.

In conclusion, I personally feel that although, policy of financial rewards can generate some problems among colleagues, the system of offering extra money to brilliant employees has many advantages.