How rewards may improve motivation


Problem: Kim believes her company has an Innovation business strategy and trialed a bonus reward strategy last year where designer/developer staff earned bonuses for innovative software solutions based on a detailed and challenging performance criterion. At the Staff Christmas party, Kim presented certificates of achievement to the staff who met the performance criteria and paid bonuses between $5,000 to $15,000 based on their performance.  Overall employee performance increased by 20%, but Kim has read that money often is not an effective motivator, so she is wondering if the increase in performance is purely due to the bonus or if other factors may be at play. Advise Kim using the Expectancy Theory of Motivation, how rewards may improve motivation and offer suggestions of what other factors may be at play in explaining the increase in performance in this situation. 

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HR Management: How rewards may improve motivation
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