Employee Motivation and Reward Systems

A collection of key terms and definitions related to employee motivation and reward systems.

S.M.A.R.T.E.R Goals

Effective goal setting features that are Specific, Measurable, Achievable, Relevant, Time-framed, Exciting, and Reviewed.

Equity Theory

A theory stating that employees are motivated by fairness in work exchanges and compare their input-outcome ratio to others.

Job Design

The process of assigning tasks to a job, including interdependencies, with the goal of efficiency while maintaining employee motivation.

Performance-based Rewards

Rewards based on individual, team, or organizational performance, such as bonuses or profit-sharing.

Job Characteristics Model

A model that outlines core job characteristics (skill variety, task identity, task significance, autonomy, feedback) that affect work motivation and employee satisfaction.

Job Rotation

A job design technique where employees move between different jobs to increase engagement and reduce fatigue.

Job Enrichment

Adding responsibility to an existing job to increase motivation and satisfaction among employees.

Membership/Seniority Based Rewards

Fixed wages or rewards that increase with seniority, often attracting applicants but potentially discouraging performance.

Competency-Based Rewards

Rewards based on the relative skills or competencies of an employee, aiming to motivate the acquisition of new skills.

Unintended Consequences of Rewards

Negative outcomes that may arise from rewards, such as gaming the system or adopting a transactional work relationship.