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Improving job performance by using non-monetary reward systems to motivate low-skilled workers in the automotive component industry

Automotive component manufacturing companies where the labour is low skilled and the processes are labour intensive, are being challenged on a more regular basis to find methods to satisfy needs to motivate employees to improve performance. Automotive companies are becoming more under pressure to motivate employees through non-monetary rewards, due to collective bargaining which has made pay for performance very inflexible. It is because of this fact that employers have to assess non-monetary reward methods to motivate employees to improve performance. To be motivators, rewards must be aligned with the needs of people and the things that they value. If these rewards are aligned with employees needs, this could lead to increase in employee motivation, which will in turn lead to improvement in performance, and therefore lead to companies becoming more competitive. This research paper aims to assess what would be the motivators when establishing a non-monetary reward system. To this end the various motivational theories are presented which clearly identifies what needs people have and how they can be satisfied to change behaviour and therefore improve performance. Secondly, reward systems are discussed with various types of rewards being considered and more specifically non-monetary rewards. Applied research was undertaken to determine non-monetary rewards that will motivate low-skilled employees to improve performance. A survey, with the aid of a structured questionnaire, was used to gain information from 60 employees. The research was conducted in three companies that manufacture components for the auto industry. The majority of the respondents indicated that: 1. basic needs must be satisfied with monetary rewards; 2. non-monetary rewards, if linked to higher hierarchical needs, will then motivate employees; 3. non-monetary rewards should preferably be of a physical nature such as certificates, caps and t-shirts; 4. satisfaction of these higher level needs motivate employees and improve their performance; 5. employees prefer feedback and recognition as a non-monetary reward on a regular basis, and 6. the needs of employees should be identified through a survey to establish which rewards will satisfy these needs.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10910
Date January 2002
CreatorsTaljaard, Jacob Johannes
PublisherPort Elizabeth Technikon, Faculty of Management
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatx, 108 leaves, pdf
RightsNelson Mandela Metropolitan University

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