No one works for free, nor should they.

While pursuing money based on negative motives can lead to a properly psychological well -being, this is not the same as pursuing money to provide security and comfort for oneself and family . Obviously, employees want to earn fair wages and salaries, and employers want their workers to feel that is what they are getting. To that end, it its logical that employees and employers alike view money as the fundamental incentive for satisfactory job performance. The use of the monetary or other financial incentives in the classic work performance paradigm is based primarily on reinforcement theory. Reinforcement theory focuses on the relationsh ip between target behaviour (e.g., work performance) and its consequences (e.g., pay).

Here is a case study of T-Mobile which is an USA based company well known for mobile communication services:T-Mobile USA As one of nations fastest growing providers of communications services, T-Mobile has more than 20 million customers and more than 13,000 customer service employees. After ranking low in customer satisfaction survey. The company found that their employee did not work in a good way and analyse that the company is not growing that time. Then the C.E.O. of the company find a way to solve that problem and he start to give extra pay and incentives to their employees . The gap between their brand promise and employee engagement, and instituted a strategy to close the gap.

The results have been dramaticly T-Mobiles rewards and recognition program resulted in the company ranking highest in JD Power and Associates Wireless Customer Care Performance Study three years in a row. Employee attrition has also been reduced by more than 15%, and employee satisfaction has increased by 10%. Performance improvement results at this level come from effective incentive programming. T-Mobiles program achieved its success through several key elements: performing up-front research (one-to-one interviews/surveys and focus groups) to determine the best awards and program structure; segmenting the audience and encouraging incrementa l improvements for different levels; having a strong service mission and reinforcing company values; linking the brand to mobilize the team and drive external excitement internally; and recognizing top performers but also encouraging team results. Finally, incentive programming is but one part of TMobiles comprehensive effort but it is a critical part in motivating employees to deliver results.

CHART-2005
2.5

1.5
no incentives 1

with incentives

0.5

0
employee cat. 1 employee cat. 2 employee cat.3

c A)- EMPLOYERS CAT-1 CAT-1 PRODUCED 1.2 MILLION CELL PHONE IN ONE YEAR BUT AFTER INCENTIVE THE GROW UP TO 1.8 MILLION PER YEAR. B)-EMPLOYERS CAT-2 CAT-2 THE SENIOR AND EXPERT EMPLOYEE OF THE COMPANY PRODUCED 1.6 MILLION PHONES IN A YEAR BUT THE EXTRA MONEY GIVE THEM A BOOST AND THEY REACH TO 2.2 MILLION PER YEAR.

C)-EMPLOYERS CAT-3 CAT-3 THE THIRD GROUP OF THE T-COMPANY IS STAND ON THEIR PREVIOUS NUMBERS THEY SCORED 1.1 MILLION PHONES ON LAST TIME AND THEY 1.1 AGAIN BECAUSE THE TCOMPANY S C.E.O. DID NOT GIVE ANY INCENTIVES TO THE CAT-3 EMPLOYERS.

1. They have principled leadership. This doesnt mean ethics per se, although, certainly, ethical behavior is an integral component of a strong foundation for employee satisfaction. Rather, it means that company management makes a long-term commitment to employee engagement and satisfaction an indelible part of the organizations DNA not something to be cut or de-emphasized when times are tough. 2. Management listens and responds. At these companies, management has its finger on the pulse of its employee population. It elicits their input, values it and makes changes based on it. After all, no one is closer to the customers than the employees. 3. They have strong reward and recognition systems. Customer service departments at telecommunications companies usually have a bad reputation. But not T-Mobiles customer care group. Why? Because the company implemented a well-conceived incentive program, with rewards and recognition the employees care about. As a result, motivation has never been higher at T-Mobile 4. Individual and organizational goals are defined, and understood. Employee motivation and satisfaction is nearly impossible to generate if employees dont understand and care abouthow their jobs contribute to the greater good of the organization, and to the good of the organizations customers. Smart companies establish those links in a very articulated manner. 6. They link the internal to the external and vice versa. Many companies view internal and external messaging as distinctly different animals. Theyre not. Companies hoping to build an employee base that expends all of its thinking and effort on achieving external goals must put into place an integrated marketing program that reflects all constituencies, both inside and outside that company. No company can keep its external promises without preparing its employees to keep them! 7. Communication, Communication, Communication! Open and frequent lines of communication are critical to building a strong link between employee efforts and external goals, to building satisfaction among both employees and customers.

Financial incentives moderately to significantly improve task performance, but their effectiveness is dependent upon organizational conditions. Differences in institutional arrangements contribute to the feasibility and Effectiveness of various monetary incentives, as do differences in employees Preferences for specific incentives. Therefore, companies are wise to study these issues before implementing changes to existing incentive plans. This is especially pertinent for service organizations, where financial reinforcements tend to produce a stronger effect on task performance than non-financial rewards used alone. Even stronger results are seen with a composite approach. For example, one meta-analysis of 72 field studies found that monetary incentives improved task performance by 23%, social recognition improved task performance by 17% and feedback elicited a 10% improvement18. Simultaneously combining all three types of reinforcements improved performance by 45%.

Conclusion:

Today, the linkage between employee satisfaction and Financial performance is undeniable, based on numerous studies that support the correlation. As a result, T-Mobile have a rare opportunity to gain competitive leverage and differentiation by harnessing their greatest asset: their employees. Employees, in fact, are the most critical point of differentiation for any company in todays business environment. The correlations are clear: Satisfied employees generate satisfied customers, who in turn build long -term relationships -and spend more money. This presents a tremendous finding for American Corporations, most of which do not maximize the power of their employees. A major survey conducted by the Public Agenda Forum indicates that fewer than 25 percent of American workers are working to their full poten tial. And 75 percent said they could be significantly more effective in their jobs than they are. Plus, 60 percent believe they do not work as hard as they did in the past because in this time they did not pay any incentives from their owner.

ABSTRACT

2005

T-mobile COMPANY U.S.A.

A CASE STUDY MOTIVATE EMPLOYEE BY PAYING ON PERFOMENCE FOR SATISFACTION

(1) T-MOBILE U.S.A. 2005