Though it may seem fairly obvious that receiving praise and recognition from ones company is a motivating experience, sadly many companies are failing miserably when it comes to saying thanks to their employees. According to a recent report by BlessingWhite Inc., 24 percent of Indian workers are highly disengaged, meaning that they do not care about their organization.Employee recognition programs, which became more popular as the world economy shifted from industrial to knowledge-based, can be an effective way to motivate employees and make them feel valued. In many cases, however, recognition programs are doing more harm than good according to Curt Coffman, global practice leader at Gallup.

Sara Ko, a 50-year-old former employee of a dot-com company in California. Her company proudly instituted a rewards program designed to motivate employees. What were the rewards for a job well-done? Employees would receive a badge which read U Done Good and, each year, would receive a T-shirt as a means of annual recognition. Once an employee received 10 U Done Good badges, he or she could trade them in for something bigger and bettera paperweight. Ko states that she would have preferred a raise. There wasnt any deep thought involved in any of this. To make matters worse, she says, the badges were handed out arbitrarily and were not tied to performance. And what about those T-shirts? Ko states that the company instilled a strict dress code, so employees couldnt even wear the shirts if they wanted to. Needless to say, the employee recognition program seemed like an empty gesture rather than a motivator.

Even programs that provide employees with more expensive rewards can backfire, especially if the rewards are given insincerely. Employees may find more value in a sincere pat on the back than gifts from management that either are meaningless or arent conveyed with respect or sincerity. However, sincere pats on the back may be hard to come by. Gallups poll found that 61 percent of employees stated that they havent received a sincere thank you from management in the past year. Findings such as these are troubling, as verbal rewards are not only inexpensive for companies to hand out but also are quick and easy to distribute. Of course, verbal rewards do need to be paired sometimes with tangible benefits that employees valueafterall, money talks. In addition, when praising employees for a job well-done, managers need to ensure that the praise is given in conjunction with the specific accomplishment. In this way, employees may not only feel valued by their organization but will also know what actions to take to be rewarded in the future.

Answer any two questions given below. (All questions carry equal marks)

1. Why reward programs do not motivate employees? (Use information given in the case to explain your answer.

2. As a manager, what steps you can take to motivate employees when they perform well? (Use expectancy theory to explain your answer)

3. As a manager, how would you ensure that rewards/recognition given to employees is distributed fairly. Give examples to explain your answer.