CHAPTER 2 LITERATURE REVIEW, AND THEORETICAL AND
2.10 Perceived Organizational Support (POS)
2.10.2 Rewards and Recognition (R & R)
this makes employees less motivated and less participatory in their team work and has negative impacts on the innovation outcomes of the organization (Eduardo &
Grossman, 2015). Much of the literature has expressed that there is significant importance of teamwork that works behind the success of each innovative program.
Martin and Gemuenden (2001) stated the following in this regard: “There are six sides of the team work and they are communication, coordination, balance of member contributions, mutual support, effort and cohesion” (Martin & Gemuenden, 2001).
POS helps to improve employees’ work attitudes and behaviors. If the organization treats its employees well, then the employees guess that they may be accepted and supported by the organization, and in return they hunt for recompense for this action. As a result, they become more dedicated and hardworking (Eisenberger et al., 1986), which brings expected outcomes and thus benefits the organization (Cropanzano & Grandey, 2000).
Team cohesion improves work attitudes and boosts productivity (Barrick &
Alexander, 1987). Employees (team members) that work on a quality team, enjoying cohesion, are ensured greater job satisfaction and organizational commitment (Griffin, 1988). Howes (1995) stated the following: “If organizational support is missing, interest among team member’s wanes, as well as cohesion. As a result, total performance decline” (Howes, Citera, & Cropanzano, 1995). All of these explanations indicated that there is a link between team cohesion and innovation outcomes thus effectiveness in the presence of POS.
2007). There is a huge effect and many influences of rewards and recognition on creativity and innovation.
An organization can show its best performance only when its employees are most dedicated and ‘own’ the organization and this will be possible through the innovativeness and creativeness of employees. According to Broad (2007), tangible incentives are effective in increasing performance for task not done before, to encourage thinking smarter and to support both quality and quantity to achieve goals.
incentives, rewards and recognitions are the prime factors that impact on employee’s creativity. The reward and recognition programs serve as the most contingent factor in keeping employees’ self-esteem high and passionate. Oosthuizen stated that “it is among the function of managers to motivate the employees successfully and influence their behavior to achieve greater organizational efficiency”.
The commitment of employees is on the basis of “rewards and recognition”
(Andrew, 2004) Organizations attain enormous advancement following business approaches through a structured balance of a recognition and reward system.
Deeprose (1994) argued the following: “The productivity of the employees can be enhanced through providing them effective rewards and recognition which ultimately results in improved outcomes of the organization. Today where every organization has to meet its obligations, the performance of the employees has a crucial impact on overall organizational achievement. In a demotivated environment, low or courage less employees cannot practice their creative abilities, innovation in full commitment to the extent an organization needs” (Deeprose, 1994).
It is also observed that when an organization pursues an effective structured employee performance recognition and performance-based award system and concentrates on the execution of this structure, the working environment would be favorable to producing best performance (Freedman, 1978). He also added the following: “Employees take recognition as their feelings of value and appreciation and as a result it boosts up morale of employee which ultimately increase creativity and so organization outcomes” (Freedman, 1978). Rewards and recognition create emotional feelings toward the organization and increase morale and thus create a bridge between employees and creativity (Flynn, 1998).
According to Flynn the main objective of R & R is to define “a system to pay and communicate it to the employees so that they can link their reward to their performance which will lead to their innovative ability through creativity. The reward includes the financial rewards, pay and benefits, promotions and benefits that satisfy employees to some extent but for committed employees, recognition must be given to keep them motivated towards creative thinking and so innovation.” Baron mentioned that an employee is recognized by his or her working capability and performance within a certain period of time. He also included that recognition nowadays is the highest demanded issue by employees according to the expert’s opinion. Rewards hardly include financial and compensative support, which might not be the only promoter of the employee’s creativity (Baron, 1983). The creativity level of the employee increases when he or she is unexpectedly recognized, praised, and paid (La Motta,1995)
Rewards help to establish the significant performance of an employee, which leads to innovation. Lawler (2003) explained the following in this regard: “There are two factors which determine how much a reward is attractive, first is the amount of reward which is given and the second is the weightage an individual give to a certain reward. Rewards, incentives and recognition are the key parameters of today’s innovation programs according to most of the organizations as these bind the success factor with the employee’s performance.”
Creativity and the innovation of the members of the innovation team can be achieved through a perfect, effective, and actual system of rewards and recognition, as Bowen (2000) stated: “a reward is something which is given or received in return for a success or achievement. Reward is used as an appreciation of certain behavior in the shape of monetary or non-monetary incentives after the accomplishment or success.
Recognition is the sense which is given to an individual that he or she is a valued person of an organization. Recognition is monetary and non-monetary reward offered in the public place or communicated in the work place regarding the success or accomplishment of an individual” (Bowen, 2000).
Imran (2014) identified two types of rewards—financial and non-financial. He argued the following: “Financial rewards include performance bonus, commission, tips and gifts. Non-financial rewards include recognition, praise and appreciation.
Recognition is one of the strong factor that motivates towards creativity and thus innovation. Employees feel comfortable when they are praised and recognized.
Recognition of an employee enriches his or her energies towards accomplishment of organizational goals and objectives. There are two forms of recognition - formal and informal” (Imran et al., 2014). There is a good amount of literature that is in favor of intrinsic rewards that have enough potential to boost creativity, but a high number of managers emphasize extrinsic rewards, which are monetary benefits. Recognition also excites the innovative and creative behavior of the employee (Williams, 2001).
Gallus and Frey (2016) and Moser and Nicholas (2013) found that “the rewards and recognition were positively related to creativity and innovation, the publicity surrounding the winners was an important mechanism for encouraging creativity and innovation”. Thus, public service organizations’ rewards and recognition programs can emphasize holding present innovation proficiencies and also promote future innovative and creative performances.