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The concept of "Greed Is Good" is related to three key factors in the workplace.

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 The concept of "Greed Is Good" is related to three key factors in the workplace:


remuneration, motivation, and organization. This means that the promise of higher pay and rewards can often serve as a powerful motivator for employees, leading to increased productivity and job satisfaction.

The concept of "Greed Is Good" is related to three key factors in the workplace.
 The concept of "Greed Is Good" is related to three key factors in the workplace.

Additionally, a well-organized workplace can help further incentivize employees to work harder and achieve their goals. Overall, the notion that "Greed Is Good" suggests that a focus on financial incentives and a strong organizational structure can drive positive outcomes in the workplace.

During the 1980s, business culture in the United States and around the world placed a strong focus on individual rewards, believing that motivated individuals could make significant changes to organizations and communities. This idea was exemplified in Gordon Gekko's famous declaration in the movie Wall Street, where he stated that greed was a positive trait. However, in the 1990s, companies suffered from using remuneration as a motivator inappropriately, leading to bankruptcy and traumatic events. Despite this, many successful corporations still utilize reward-based remuneration systems. Examples of this include Phones4U and Allied Dunbar, a financial services market leader in the past.


Barings Bank, which was infamous for having individual traders on bonuses of millions, found that these motivated traders were not achieving the company's goals in the long run. Additionally, even if an individual's compensation is fairly based on performance indicators that lead to the success of the organization, problems may still arise due to the significant difference in pay between senior executives and middle managers. A payment system that lowers or demotivates ten people for every one that it motivates may not be the most effective for the organization.


Smart businesses are endeavoring to incentivize and inspire their entire workforce, encouraging them to vigorously pursue the company's goals in both the immediate and distant future, while also providing them with a sense of equitable treatment. Nevertheless, it is crucial to establish a clear connection between the rewards offered and the actions that staff can take to affect the desired outcome.


The concept of "Greed Is Good" is related to three key factors in the workplace.
 The concept of "Greed Is Good" is related to three key factors in the workplace.


A wise organization accepts that:


It is understandable for a manager to take actions in their own personal benefit.

Managers serve individuals rather than corporations and aspire to satisfy those in higher positions that they directly report to or their colleagues if that is not possible.

Managers aim to succeed and are inclined towards tasks where they know they can succeed. However, they often prioritize short term goals over long term ones.

The suggestion is that a company should make some preparations before depending on a payment plan to influence how workers perform and behave. Essentially, the management and overall system of the company need to work in harmony with the payment system.


An effective system of rewards requires five major prerequisites to be established.

The act of measuring is crucial in achieving success. Balanced Scorecard is a well-known measurement system used by Tesco that sets multiple objectives.

If the manager does not monitor the performance measures regularly or only measures them at the end of the year, it can send a message that the measures are not important or that it is alright to fail as long as everyone fails together.


The organization needs to make sure that the person performing the job has access to the necessary tools needed to achieve the set performance standards and is not relying heavily on external factors that they cannot control. This aspect focuses on the methods used to achieve the desired results.


The concept of "Greed Is Good" is related to three key factors in the workplace.
 The concept of "Greed Is Good" is related to three key factors in the workplace.


4. Maintaining continuity:


Making sure that managers are not excessively influenced or distracted by short-term organizational factors that might steer them away from their end goal. In addition, the organization should ensure that it's designed appropriately (whether formal and rigid, or flexible and open) depending on what is expected of the managers.


Aligning rewards and strategy:


The process of an organization developing a well-defined strategy is not a one-time event that will occur in the future; it is an ongoing journey. Even if an organization has an unclear strategy, a compensation system can still be introduced as long as conflicts related to management and organization are resolved by referring to the strategy and the balanced scorecard. This will put pressure on the organization to improve its structure, strategy, and compensation systems.



There are 5 preconditions that serve as the basis for a checklist of 10 factors that a remuneration and reward system needs to meet in order to be effective.

1. Support the business strategy

2. Encourage the desired behavior

3. Reward relevant performance

4. Be fair

5. Be substantial

6. Be tax efficient

7. Ensure that the reward is given promptly after the accomplishment.

It is important to include rewards that are not strictly monetary in nature, as being recognized for one's efforts can hold equal value to receiving cash.

It is necessary to maintain a strong stance on the matter, as a bonus that is not achieved due to failure to meet targets should not be able to be regained. However, a salary increase should only be postponed until the targets are met.


Summary:


During the 1980s, both in the USA and internationally, there was a strong emphasis on rewarding individuals for their personal achievements, with the belief that high motivation could bring about significant transformations in organizations and societies. This trend was exemplified by characters like Gordon Gekko in the movie Wall Street, who famously proclaimed that "greed is good." However, in the 1990s, many companies suffered from the negative consequences of incentivizing employees through excessive remuneration, leading to bankruptcies and other troubles. Despite these setbacks, some major companies have still achieved success through generous reward-based compensation.


Keywords:
remuneration,motivation,organisation
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