Most of us while studying in B schools dint spent much time in studying the intricacies of human behavior and Human resource Management as a subject. Today when I work with daily issues in the company I think it is the toughest and most important element of the business .
You can have very fancy strategies, full involvement of the top management but communicating the message to all the people in the organization and motivating them to implement a particular strategy is not easy . Every man wants importance and good roles, how will you satisfy every one and yet bring them to accept a change. At times even automation which eases jobs of the people brings lot of dissatisfaction amongst the employees as they are left to do very mundane tasks which even a ordinary person can do. After every few years the best people will leave the organization and the others will be left who are not even half as good. How to cope with this issue . Providing them good incentives to stay ?
Incentive structures to motivate the people can back fire. Against the popular perception, money is the least important thing for most of us. In blue collor jobs where the salary are the lowest, people are not concerned about it , they are happy in there 2 meal a day. If you provide them high incentive to improve their productivity, they might work for only 5 days and enjoy the rest 2 days. There monitary needs gets fulfilled in working just 5 days, this leads to mass absenteeism which is not good in any setup.
The great Lehman Brothers gave amazing bonuses to their top management which induced them to take more risks. The ultimate result is known to everyone . So is this fixed salary and a incentive scheme actually works ?
I am still struggling to find a answer to it ...