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Employee Recognition Programs in the Public and Private Sector

Employee Recognition Programs in the Public and Private Sector

 Abstract

            Employee recognition programs in the workplace can provide a positive environment and morale within an organization.  This paper will have the needed research on organizations with and without recognition programs.  The research material will provide insight into which organizations personnel enjoy their place of employment.  The paper will also include evidence to support if employee recognition programs motivate employees to make an extra effort in obtaining company goals set by their superiors.  An essential aspect for effectual leadership pertains to strengthening and inspiring other workers to steer good performance. Both financial and non-financial prizes can apply to this particular goal. As this paper examines the background about the characteristic prominence of employee recognition within an organization, it will also unveil the need for a reliable reward system as organizations try to retain profitability and face stiff competition in the current dynamic market (Montani, 2020). Most of the time, recognition is significant if it is connected to specific achievements or organizational objectives. Whenever a company recognizes workers, explaining credit helps the workforce relate the acknowledgment to their work ethic, encouraging persistent performance among the workforce workers.

                        Key Words: Acknowledgment, Complimentary, Virtuous.

I.       Introduction

Employee Recognition is the action of openly recognizing workers for their achievements or contribution (Montani, 2020).  Recognition in the public and private business sector shows appreciation to their employees.  When companies implement these programs, it shows that supervisors acknowledge and value their employees' work.  Recognition programs also boost company morale and encourage employee engagement.  Implementing recognition programs can also help employees' well-being psychologically with the gifts they receive from management.  Employees may be rewarded with a day off, a reward recognition plaque, gift cards to food places, or on-job training of their choice.  Employee recognition programs are beneficial for managers to adopt to promote positive behavior with employees and consistently meet goals. The high levels of observation associated with personal objectives and personal initiative to ensure that all the workers are involved in pertinent issue concerning the entire organization.

Background

Recognition programs have been around numerous years, going back to the B.C. era when Cyrus the Great used recognition to get workers to rebuild the Jerusalem Temple (Joshi et al., 2015). Recognition became ideal in America through the United States Military.  In ancient times, the military gave medals during the American Civil War.  These medals were initially awarded to individuals by the commanders on an unofficial basis (Saunderson, 2016).  The first medal of achievement was the Medal of Honor, and it was presented to individuals with additional military incentive. The next medal of recognition came after World War I and II.  This medal is known as the Victory Medal.  Very few individuals received these medals of recognition, and it became common that service members could go their entire career without receiving any recognition. One of the most basic human need is placing one before himself. Appreciation and recognition is one of the most effective ways of retaining a cheerful workforce.

During the early years, individuals were recognized with medals that were provided by the employer.  It was in 1943 that employees wanted to be compensated with incentive pay and introduced into economic literature (Nelson, 2016).  Following the year 1943, employers came up with other ideas to recognize employees: jewelry with the company logo, plaques, trophies, and gifts.  All of which were introduced in the latter years of employee recognition.  The emergence of the internet allowed employers to award gifts electronically.  Electronic gift recognition also created a broader selection of recognition items to choose from. Organizations are looking to enhance a company's morale, positive work environment, and employee productivity when implementing recognition programs.

The United States military rewarded their personnel for accomplishments that commanders put in place.  Initially, awards were minute items such as ribbons and medals.  As time progressed and technology advanced, so did the type of awards individuals would receive.  Companies began to notice a pattern in the workplace (Obiageli et al., 2016). Companies that acknowledge their employees on a job well done noticed workplace goals were achieved and organizations' culture was positive.  With the apparent success, organizations have achieved by rewarding their employees to accomplish company goals through recognition programs. Theoretical Perspectives

Motivation and encouragement are used when employers implement recognition programs.  When designing these programs, employers look to retain employees by satisfying their workplace needs, improving job skills, obtaining company and personal goals, and developing a positive culture within the company. Research shows that employees “want full appreciation for the work they have done, financial stability, promotion and growth opportunities, and loyalty to workers”. Victor Vroom developed a motivation theory and provided the meaning of motivation through the management of psychology.  Vroom defines reason as “the willingness to make an effort in the pursuit of a goal” (Vroom et al., 2015). Vroom’s theory has three major components: expectancy of effort and performance (E), performance and reward/work outcomes instrumentality (I), and rewards/work outcomes and personal goals valence (V) (Parijat, 2019). Expectancy is the subjective probability resulting from an outcome.  Instrumentality is the perception of an employee that performance will lead to organizational rewards or consequences.  Valence measures the prizes' attractiveness, preference, value, or liking (Parijat, 2019). Frederick Herzberg developed a two-factor theory of motivation known as Motivation-Hygiene Theory.  Herzberg believed there are two ways to motivate employees in the workplace: motivators and hygiene (Herzberg, 2017).  Motivating factors are encouragement in the workplace to work harder, and hygiene factors influence employees to be unmotivated and cause a hostile culture.  Within his theory are four components that explain the high and low motivation and the hygiene factors' high and quiet (“Herzberg’s Motivation Theory-Two Factor Theory,” n.d.).  As time progressed, so did the needs of employees.  Before recognition programs being implemented, employee appreciation was just a simple job well done or pat on the back by a supervisor or colleague.  Today, employees are being compensated financially, presented rewards, and recognition through the company to show their value within the organization.  There has been an increase in employee satisfaction and lower turnover rates within organizations participating in recognition programs.

A hurdle that persistently confounds new organizations is the troublesome drain of monetary and human resources due to workforce turnover. For instance, one survey revealed that 378 organizations noted in human resource reports that turnover amounts were at an all-time high of 15%. More astonishingly, the information pointed out that workers who left companies worked in important departments such as information technology and client services. Additionally, the survey noted that companies spent an estimated $10,000 to replace key workforce members. In terms of the recommendations, the survey claimed that senior managers should incorporate employee recognition systems to retain their workforce and increase performance. In other words, employee recognition programs motivate managers to align vital results to certain desired mannerisms. Subsequently, whether employee recognition programs are different, they must demonstrate the sustenance of workforce motivation and connect performance and reward. The comparative significance of motivating and supporting the workforce is one of the main management operations tied to successful management strategies. Besides, perceiving employee recognition as a performance enhancement tool is not a new concept. It has been used in the past to influence the workforce and embed company values on vital missions. More so, employee recognition cements behaviors that contribute to the organization's success. By introducing desired mannerisms, managers indicate to workers that their efforts will not go unnoticed and unappreciated. Substantial research works have sustained the perception that non-monetary rewards can be important in building a relationship with a company's performance. Over the years, surveys have supported non-monetary recognition systems' role to bring out exemplary performance and help an organization attain its main target. Employee recognition is regarded as one of the main human resources activities resulting in conducive working conditions. Employee recognition programs are widely permitted as business operations that sustain or improve output and engagement. Employee recognition aims to provide numerous ways to reduce employee turnover and maintain high productivity while satisfying the workforce. Appreciating personnel helps organizations generate the frameworks needed to ensure effective client experiences in both internal and external surroundings. Management and leadership within the public sector claim that was offering useful employee recognition correlate with positive morale, devotion, assurance, and satisfaction within the work environment (Parijat, 2019). Recognition is an important element in retaining a talented workforce, which is important in the current dynamic demographics. Even though employee recognition systems exist, few are effective and cover necessary recognition sections such as day to day appreciation, simple acknowledgment, and formal acknowledgment. For a long time, organizations established organizational formal recognition programs that award departmental achievements through social recognition. One of the things that sometimes misses some of these recognition programs is the need for day-to-day acknowledgment due to workers' contributions. Daily recognition justifies the caring attitude and appreciation for most of the personnel. It gives upkeep, integrity, and sense to the few workers who receive or earn the recognition award. Most managers need to be trained and educated on effective recognition strategies. More accountability and care should be considered while giving verbal or printed perceptible types of recognition. Recognition needs to stem from exemplary performance and other peer reviews. Additionally, recognition is one of the most effective ways entities use to attain certain objectives within a short period of time and also cater to the needs of the people while at the same time remaining at a competitive level. This needs to upgrade organizational support by creating robust organization cultures, distinct policies, mechanisms, and finances to offer workers (Combs, & Michael, 2018). Also, attaching each activity to a reward is a good way of shaping the thoughts of the people while considering their needs and wants, which may lead to increased salaries or even bonus for the sake of ensuring that the people are satisfied and keep up with the upward trajectory of the work performance and inclusion.

 

II.    Seminal Studies

Numerous investigations assessed the impact of motivation on labor and performance to react to the restriction of re-structuring work operations and the needs of the company's output and effectiveness (Vroom et al., 2015). These researches stressed employee recognition as a vital element of workforce inspiration. More so, internal and external motivation frameworks are necessary for the point of employee recognition. These scholars claimed that organizational performance is affected by increasing internal and external recognition. Numerous other examinations also agree with the same line of thought; hence motivation is an indicator of performance.

Nevertheless, the objectives of the research are tied to management concerns associated with personnel commitment and turnover (Combs, & Michael, 2018). Some scholars noted that the essential norm of personnel recognition is a motivational vector and useful work constituent. Indeed, it serves as a personal developmental medium and a binder and dynamic element in manufacturing associations. It is also crucial to retaining mental health in the confines of the workplace. On the other side, lack of recognition may lead to distress and hinder the performance of challenging specialized tasks (Herzberg, 2017). One of the most vital aspects of organizational utilization and arrangement relies on recognition to attain goals within an organization. More so, employee recognition enhances learning while on the job and constructs fundamental units of schooling organizations. Therefore, through workers' satisfaction, the effectiveness is felt in the entire organization's production and performance. Admittedly, most of the workforce needs recognition by their managers and supervisors to retain a good workflow and ethic.

III. Empirical Research

In one particular investigation, the research model relied on two primary variables. Employee recognition was essentially an independent variant while performance was a dependent element perceived from two levels namely, personal efficiency and organizational performance (Kumar, & Mathimaran, 2017). The research assumed that disparity in employee recognition generates an effect on performance at the personal and organizational level concurrently. Also, personal output was dependent on organizational performance, signifying a connection between personal performance and organizational performance. This is illustrated below.

 

 The performance pointers consist of targeted objectives, turnover rates, personnel satisfaction, confidence, amount of resources within an organization. The framework works on the basis of after realizing an improved feedback, the company gives the workers a positive feedback to a particular personnel responsible for the observed improvement. The study model was recreated after the total reward system which assessed reward mechanisms meant to attract, inspire and retain workforce within a certain business entity (Kumar, & Mathimaran, 2017).  This study’s hypothesis is that there is a connection between employee recognition and overall performance. Employee performance is primary in initiating and retaining the performance of the entire organizational performance. Performance entails the arrangement of the administrative, teamwork and individual efforts towards the attainment of certain objectives.

 This particular research depended on cross-sectional design to collect data from selected organizations.  The population sampled 400 medical personnel from national medical institutions. Out of this sample 10% were selected to take part in the research study. The sample was inclusive of personnel, medical experts and caregivers (Obiageli et al., 2016). More than 40 questionnaires were given out to the sample. All the respondents were to fill in in the questionnaires and submit immediately to the team of researchers. Later, the data was gathered via a survey questionnaire structured to particularly isolate relevant information to help in answering the research inquiries. After the collection of the information, analysis of the results showed that most respondents proved that acknowledgement and gratitude of medical personnel increases their performance due to the positive effect it has on them (Zirra, & Anyatonwu, 2019). Thus the more appreciation and acknowledgement someone receives, the more productive they become in the long run.

 A second research on employee recognition claimed that ascertain that, to keep workers satisfied, the employer had to execute three strategies- respect, recognition and then put in place rewarding systems (El Masri, 2017). The main hypothesis was- respectful working space generates a conducive surrounding where one could recognize and reward exemplary performance. If one does not respect workers will not respect reward systems put in place. The research employed descriptive methodology to discuss the details as they occur. Later on the researchers made use of exploratory research for the sake of defining the underpinning cause and consequence. In this particular case, primary details were gathered via questionnaires and informal face to face interviews. Secondary information was derived from past business records and annual reports (Obiageli et al., 2016). After the collection of the data, most of the respondents claimed that people had a respectful working condition enabled them to be more receptive to rewards and acknowledgement from the employers. The research sample Chinese companies located in Wuhan, where the workers are expected to work for more than 10 hours each day.

 The third research hypothesized that people employee recognition inspires workers to attain more in terms of performance and output. The study aimed to prove that effective employee recognition programs were only effective in institutions with a robust supportive culture and ability to comprehend the psychology behind motivating a workforce after a job well done. The research used survey questionnaires to collect primary data from people who were willing to respond to the questions. Survey questionnaire was an effective way of collecting data in an unbiased ways (Zirra, & Anyatonwu, 2019). The questionnaires was given to 180 workers positioned in different companies in Qatar. The institution where the questionnaires were placed were selected randomly. Out of the 180 workers chosen, 117 workers claimed that employee recognition is inspirational as it gave credit to one’s talents and abilities which in turn increased confidence and pushed up the output.

IV. Recent Developments

Most of the developments focus on ensuring that the workers have undergone training due to its informal and decentralized nature. For instance, in the recent past, human resources sectors were held accountable for structuring and executing incentive programs. Typically, human resource personnel in the past formulated formal employee recognition programs that gave occasional recognitions (Joshi et al., 2015). Currently, the activity of motivating workers is under the hands of each departmental manager. A manager has to use his or her influence to recognize other workers. Thus, due to this progression, employee recognition has become more informal as people tend to create more informal ways of appreciating other people. The rise of casual and persistent forms of credit are significantly linked to essential matters of the day due to the dynamism of the contemporary business surrounding; managers have made it a habit to celebrate and recognize moments rather than wait for an occasion. Workers expect more recognition; hence managers can no longer wait for formal events to get the opportune moment to identify exemplary work.

The number of organizations participating in employee recognition programs has increased from 1815 to the present day.  The imagery forces of the recognition programs is not only for optics but to gain the favor of the public and restructure the managerial aspects of the organization.

 An organization should offer its workforce an appropriate culture, effective communication, courtesy, and consistency to raise the office space (Amoatemaa, & Kyeremeh, 2016). Employee recognition is about an individual award or action and a persistent effort to ensure that they experience glory. Personnel recognition is a reliable contributor to upgrading personnel motivation and generating an association with a company or business entity. Recognition implants more satisfaction and devotion, leading to an increased level of output and efficiency. Even credit is only a single part of the strategy; it plays a vital role in assisting companies in retaining a larger workforce in a dynamic working environment. To integrate recognition systems into an organization, employers have always strategized around three sections- formal recognition, departmental, and daily recognition. Respondents indicated that measuring the effectiveness of a single category of the credit depends on how well the organization applies the recognition measures. If one does not work, the other might work or even slow down the expected outcome (Ndungu, 2017). Hence, it is good to be well acquainted with each type of recognition to cater to an organization's immediate needs. Before the implementation of any recognition systems, managers need to apply effective strategies and good leadership. Employee recognition modes need to be effectively communicated and incorporated into the company culture. Some of the implementation mechanisms occur through upgrading company values and offering skills and awareness. Recognition and reaction skills need to be modeled and sharpened to know how to recognize workers.  As the competition between companies intensifies, retaining a talented workforce seems to be at the top of each company's list. Hence, employee recognition is a significant constituent in staffing management tactics. Employee engagement is one of the essential functions of the human resources department, and it is extensively used in promoting employment. Even though the concept of recognition is not new, it is finally evolving into a strategized program combined with business aims and desired outcomes (Joshi et al., 2015). Besides, employee engagement is an essential factor in upgrading organizational output, such as client loyalty, worker output, and retention. Employee recognition results in personnel engagement, while higher employee recognition translates into higher sales and a good work ethic.

 Employee recognition is an organizational, managerial element as it is directly linked to fundamental human needs (Bao, & Nizam, 2015). Even though it is quickly gaining momentum, it needs to be defined and placed within a comprehensive capsule that allows people to apply and utilize it for good. Employee recognition is vital due to increased production at workplaces, reduction of workforce turnover, production of high-profit margins, and consumer satisfaction. A satisfied worker is a happy employer hence pushing up sales automatically (Nelson, 2016). Management must try and keep up with the workers' needs to attain desirable outcomes for an organization. A manager should commence formulating operations or actions that might make the company feel engaged and motivated. Thus employee recognition needs to be a significant, reasonable, informal, or formal appreciation of one's efforts or mannerisms (Ibrar, & Khan, 2015). In the workspace or any other level, one needs to comprehend how appreciation works and apply it in the broader perspective of the job. Gratitude is a basic human need. Employees react to acknowledgment demonstrated by recognizing exemplary work performance because it proves that one has done good work and is worthy of an appreciation or even reward. When personnel, together with their work, are valued, their contentment and output increase, and they are inspired to do more or even better than the last time. As a result, this key factor increases personnel engagement hence higher organizational performance.

V.    Limitations of Literature

  Most of the research does not entail a detailed description of the workers' personalities who received recognition. The nature of the workforce may play a crucial role in the feedback the organization will receive after recognizing one of its best workers. The employee does not directly translate into a higher performance index for an organization or any other institution. Workers tend to respond differently to various forms of information. In the long run, the literature is limited to the context under which the recognition was offered hence distorting future relevance and actionable use of the story while making future judgments. More so, skilled workers are generally in demand, year in year out. Thus, workers' turnover rate in the information technology department or any other department for that matter entirely depends on the salary packs and not employee recognition mechanisms used to ensure that workers remained satisfied.  Therefore, employee recognition should take a holistic approach if an organization is to witness a boom in the company's performance and productivity. Whenever. The ability to retain a skilled workforce is based on the business approach and the workspace's conducive nature. Each worker would sometimes prefer the peace of mind to employee recognition practices to cater to the needs of the company rather than considering the welfare of the people in general. In the end, some workers may be forced to leave an organization so that they can attain specific personal values or even closure (Stoyanova, & Iliev, 2017). Subsequently, most workers know their worth, and no amount of employee recognition makes the mind of a highly-skilled, valuable client stay. Some of the issues about employee recognition are not as straightforward as they might look on the surface hence the need to analyze other central factors that might play a role in influencing the workers into actively reciprocating the favor offered to them. Thus, employee recognition has to deal with the underlying mechanisms that trigger workers to reciprocate or return the favor. Once people know how to deal with the positive mannerisms surrounding the subject matter, they can tackle employee recognition as a productivity increment factor.

VI. Future Study

 Adjusting for the imminent future implies comprehending that employee recognition programs will change over time. Employee recognition programs will later according worker and market needs (Herzberg, 2017). Managers should perceive employee recognition programs as investment ventures. Also, employee recognition program will persistently be assessed and altered based on the company needs. Therefore, in the future, feedback will be fundamental for customizing employee recognition programs to fit the needs of the company.

 Recognition programs have demonstrated to be resourceful instruments in engaging workers and assisting streamline organizational objectives. In this particular context, a company designs recognition programs that promote learning mechanisms in and out of the organization. With the implementation of a new employee recognition program, the company can engage its workforce and develop other critical productive characteristics around strategic mission and income upgrades. In terms of originality, employee engagement is severely lacking even though it is beneficial in upgrading a company's success or any other entity. Thus, recognition is a primary influencer of ever-elusive workforce commitment and the generation of workspace traditions (Stoyanova, & Iliev, 2017). Studies show that 40% of workers claim that they would have increased their commitment to the work if they were recognized. Companies with recognition programs usually outdo those without by at least 14%. Thus, customer service and output are critical areas under which companies need to consider enacting employee recognition matters. Also, organizations with employee recognition programs have a lower workforce turnover than ones without. This only proves that people need to incorporate employee recognition programs in most of the companies' activities. Appreciation is a basic human need, and every time companies try to come up with management strategies, employee recognition should be part and parcel of the entire company. Whenever personnel is placed under pressure while having nothing to show for it, the best way to approach activities is through bonus and employee personnel programs hence proving that people feel included whenever recognized and appreciated. With time, employee recognition programs are becoming an indicator of productivity and efficiency in the company worldwide—the chance to come up with better the opportunity to come up with innovative ways of doing work.

 To alter the low commitment levels around various enterprises, management systems should examine and re-evaluate rewards and recognition norms. The corporate world depends on the performance of workers (El & Suliman, 2019) hence each and every worker should be able to attain the company objectives even without garnering enough attention from the company. Remotely managers can usually monitor the performance of the people from a certain level of the government or organizational systems. This only implies that a person needs to be motivated to surging their performance levels and sustain normalcy in the working environment. In case there is a turn in the moving trends, the company must change its employee recognition programs so that it meets the people involved. The foreseeable future of recognition is dependent on focusing on rewards and other informal recognitions that happen as everyone watches the recognition criteria. Also, the aim of employee recognition programs is increasing competition within the entire organization.  Once one worker's efforts are recognized, other people may feel the urge to improve their actions to be recognized by the companies. In the end, everyone will work hard hence helping the company accomplish its goals and immediate objectives (Gates-White, & Overby, 2016). In the corporate world or society, the dynamics influencing change are always at play; hence the corporate leaders need to be on the lookout for the practical mechanisms that might enable them to capture and retain a broader consumer base for their products and services. Workforce drives the entire corporate world, and people like to be appreciated for works rendered. Most of the business value employee recognition programs as it entails the various levels of people involved. Employee recognition details numerous aspects, some of which are difficult to define. Some workers claim that employee recognition helps them make use of their strengths, while others claim that employee recognition strengthens their ability to work under any condition. Nevertheless, employee recognition goals enable entities to meet their objectives and increase output without compromising the quality of the people involved. Employee recognition is in line with engaging the workforce.

 

VII.                      Conclusion

Employee recognition is integral in the current corporate world where workers can only be retained through deliberate effort. Organization hire only talented workers. Human resource experts put in place marketing strategies to appeal to the most talented workers on the market. Once a company hires talented workers, they have to ensure that the workers are satisfied and loyal. Hence, the implementation of effective employee recognition programs. These programs ensure the worker are effective and productive. All organizations should ensure that their workforce are treated in a fair manner. In return, the workers will relentlessly work hard to improve the overall performance of the company. Rewarding workers can range from a simple spoken thankyou to gifting one with a certificate. An organization can even offer its top workers vacation packages. Some programs offer monetary awards while others nonmonetary awards. Most of the departmental executives are effective in recognizing other workers’ efforts because they are close to the workers and tend to know a specific action they did in order to deserve the award. Also, employee recognition are vital for creating and sustaining engagement. Workers should sincerely trust in the value placed on their achievement. Gesture are important because they improve morale consequently enhancing commitment to the organization.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

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