Employee recognition is the timely, informal or formal acknowledgement of a person's behavior, effort, or business result that supports the organization's goals and values, and exceeds their superior's normal expectations. [1] Recognition has been held to be a constructive response and a judgment made about a person's contribution, reflecting not just work performance but also personal dedication and engagement on a regular or ad hoc basis, and expressed formally or informally, individually or collectively, privately or publicly, and monetarily or non-monetarily (Brun & Dugas, 2008). [2]
The track of scientific research around employee recognition and motivation was constructed on the foundation of early theories of behavioral science and psychology. [3] The earliest scientific papers on employee recognition have tended to draw upon a combination of needs-based motivation (for example, Hertzberg 1966; Maslow 1943) theories and reinforcement theory (Mainly Pavlov 1902; B.F. Skinner 1938) as a foundation for the effects of employee recognition. [4]
Needs-based motivation theories are based on the argument that humans have basic drives that motivate them to behave in ways that help them fulfill those needs.
Reinforcement theory has its roots in the work of behavioral psychologists John Watson, Ivan Pavlov, E.L. Thorndike and B.F. Skinner. It argues that people can be conditioned through rewards, which can be intangible in nature, and punishments to repeat rewarded behaviors and cease unrewarded behaviors. [9] Through this process of conditioning, an association is made between a behavior and the consequence for that behavior, either an incentive or a deterrent. The theory is based on Thorndike's (1911) law of effect , which states that people are likely to repeat behavior that produces a pleasurable outcome. [10]
According to Punke (2013), recognition programs should be balanced between performance-based and value-based initiatives, but the programs should be composed by of three methods: formal, informal and day-to-day recognition. [11]
It is a type of recognition practices that are frequent (daily or weekly), low or no cost, often intangible and often reliant on interpersonal skills for positive feedback that can be given to all employees. According to Harrison (2005), the day-to-day recognition brings the benefit of immediate and powerful reinforcement of desired behavior and sets an example to other employees of desired behavior that aligns with organizational objectives. To him, it gives individuals and teams at all levels the opportunity to recognize good work by other employees and teams, and it also gives the opportunity for them to be recognized on the spot for their own good work.
In relation to employee recognition programs, there are four recognition practices: existential recognition, recognition of work practice, recognition of job dedication, and recognition of results. These four recognition practices recognize employees as full-fledged individuals as well as workers capable of being committed to their jobs by investing time and energy to perform duties competently and deliver concrete results (Amoatemaa & Kyeremeh, 2016). [12] These practices use direct compensation to show acknowledgement and appreciation for employees.
This recognition is focused on the individual and/or group. Through existential recognition, individuals are granted the right to voice their opinions about and influence decision-making, as well as the course of their own and the organization's actions (Brun & Dugas, 2008). [13] A vertical interaction level example of this is authorizing flexible work schedules.
This recognition focuses on the performance of employees job procedures, including their competencies and proficiencies. An organizational interaction level example of this is rewarding innovation by granting awards.
This recognition also involves the work process but focuses more on the involvement of employees either independently or within a team. This includes aspects such as contribution, commitment, and engagement. A horizontal interaction level example of this is a letter of thanks and/or acknowledgement from a manager to an employee for their dedication to a project.
This recognition focuses on the result/product of employee work in relation to the corporation's objectives/goals. As an expression of judgment, appreciation and gratitude toward an individual or team, recognition of results is concerned primarily with the effectiveness, benefit and value of the work performed (Brun & Dugas, 2008). [13] An organizational interaction level example of this is awarding bonuses as incentives to accomplish goals.
Countries value employee recognition to have importance in the organization, but how important it is will differ in the area. A survey in the Public Sector [14] identified employee recognition in Canada values the ideal of having greater importance than in the United States. Statistics shown that 87% of Canadians believe that it is important, while only 78% of Americans believe that statement. However, the knowledge and communication of formal and informal recognition in the United States has higher percentage than Canadians. Formal recognition in the United States by managers has been communicated by 50% and informal recognition by 34%, while Canadian managers communicated 34% of formal recognition and 17% of informal recognition. The recognition is different, as different policies and legislation are being established, while some are already formed .
A case study from M-Nic Consultancy and Research Centre (M-Nic CRC) observed that the correlation between employee recognition and employee productivity are highly related. [15] The results from the data presented showed that saying "thank you" can improve productivity by 82.9%. Praises of work can improve productivity by 88.8%. Offering simple gifts would improve productivity by 90.9%. Appreciation of work done improves the productivity by 86.4%, making the workplace exceptional would improve by 90% and providing flexible holiday schedules by 95.7%. The data of the relationship provided gives insight of how the two are connected in a business setting. Depending on the individual, the different kinds of recognition would be preferred over another.
Employee recognition has been identified to be a highly effective motivational instrument that can have significant positive impact on employee job satisfaction and performance as well as overall organisational performance (Rahim & Duad, 2013). [16] When effective recognition is provided in the workplace, this contributes towards a favorable working environment, which can motivate employees to become committed to their work and excel in their performance. Highly motivated employees serve as the competitive advantage for an organisation because their performance leads an organization to well accomplishment of its goals and business strategy. By consistently and frequently applying formal, informal and everyday recognition programs, organisations are provided with a powerful tool for influencing employees to live the organisation's values and implement its focus (Herzberg, 1996 as cited in Luthans, 2000). It also affords the organisation opportunity to highlight desired actions and behavior thereby creating role models for other employees (Silverman, 2004). [17] By specifically reinforcing expected behavior, organisations not only indicate to employees that their efforts are noticed and appreciated but also inculcate in them the organisational values, goals, objectives, priorities and their role in achieving them. As a motivational tool, employee recognition programs assist employees to see how they contribute to bottom-line results and how their contributions will be recognized and rewarded immediately. In any case formal, informal and every day recognition programs are able to satisfy both employees' and employers' needs as well as bring the maximum result and function for organizations.
Employee recognition is mainly perceived as having a positive impacts towards the business. However, there are some negative impacts like unfairness, favoritism, and bias. [18] These effects can lead to poor performance and decrease employee productivity. Employees who receive the recognition may react differently, as they may be working too hard in comparison to the other workers. [18] Other employees who do not receive recognition may feel neglected. Both of these scenarios may decrease the productivity in the workplace. These can damage the relationships from within the business. Another consequence that could arise is gender inequality in the workplace in regards to promotion. In Universities women are less likely to be promoted . . . as much as their male colleagues, or even get jobs in the first place (Savigny, 2014). [19] This is an example of women being less recognized than men which may create feelings of mistreatment and lead to reduced productivity in female employees, ultimately resulting in lower job satisfaction and therefore lower job performance.
Industrial and organizational psychology "focuses the lens of psychological science on a key aspect of human life, namely, their work lives. In general, the goals of I-O psychology are to better understand and optimize the effectiveness, health, and well-being of both individuals and organizations." It is an applied discipline within psychology and is an international profession. I-O psychology is also known as occupational psychology in the United Kingdom, organisational psychology in Australia and New Zealand, and work and organizational (WO) psychology throughout Europe and Brazil. Industrial, work, and organizational (IWO) psychology is the broader, more global term for the science and profession.
Maslow's hierarchy of needs is an idea in psychology proposed by American psychologist Abraham Maslow in his 1943 paper "A Theory of Human Motivation" in the journal Psychological Review. Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, some of which focus on describing the stages of growth in humans. The theory is a classification system intended to reflect the universal needs of society as its base, then proceeding to more acquired emotions. The hierarchy of needs is split between deficiency needs and growth needs, with two key themes involved within the theory being individualism and the prioritization of needs. While the theory is usually shown as a pyramid in illustrations, Maslow himself never created a pyramid to represent the hierarchy of needs. The hierarchy of needs is a psychological idea and an assessment tool, particularly in education, healthcare and social work. The hierarchy remains a popular framework, including sociology research, management training, and higher education.
Frederick Irving Herzberg was an American psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the Motivator-Hygiene theory. His 1968 publication "One More Time, How Do You Motivate Employees?" had sold 1.2 million reprints by 1987 and was the most requested article from the Harvard Business Review.
Work design is an area of research and practice within industrial and organizational psychology, and is concerned with the "content and organization of one's work tasks, activities, relationships, and responsibilities" (p. 662). Research has demonstrated that work design has important implications for individual employees, teams, organisations, and society.
Job satisfaction, employee satisfaction or work satisfaction is a measure of workers' contentment with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be measured in cognitive (evaluative), affective, and behavioral components. Researchers have also noted that job satisfaction measures vary in the extent to which they measure feelings about the job. or cognitions about the job.
Expectancy theory proposes that an individual will behave or act in a certain way because they are motivated to select a specific behavior over others due to what they expect the result of that selected behavior will be. In essence, the motivation of the behavior selection is determined by the desirability of the outcome. However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave.
The two-factor theory states that there are certain factors in the workplace that cause job satisfaction while a separate set of factors cause dissatisfaction, all of which act independently of each other. It was developed by psychologist Frederick Herzberg.
Theory X and Theory Y are theories of human work motivation and management. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices.
Job enrichment is a method of motivating employees where a job is designed to have interesting and challenging tasks which can require more skill and can increase pay.
Content theory is a subset of motivational theories that try to define what motivates people. Content theories of motivation often describe a system of needs that motivate peoples' actions. While process theories of motivation attempt to explain how and why our motivations affect our behaviors, content theories of motivation attempt to define what those motives or needs are. Content theory includes the work of David McClelland, Abraham Maslow and other psychologists.
Organizational behavior or organisational behaviour is the "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself". Organizational behavioral research can be categorized in at least three ways:
In industrial and organizational psychology, organizational citizenship behavior (OCB) is a person's voluntary commitment within an organization or company that is not part of his or her contractual tasks. Organizational citizenship behavior has been studied since the late 1970s. Over the past three decades, interest in these behaviors has increased substantially.
Theory Z is a name for various theories of human motivation built on Douglas McGregor's Theory X and Theory Y. Theories X, Y and various versions of Z have been used in human resource management, organizational behavior, organizational communication and organizational development.
Employee engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. An "engaged employee" is defined as one who is fully absorbed by and enthusiastic about their work and so takes positive action to further the organization's reputation and interests. An engaged employee has a positive attitude towards the organization and its values. In contrast, a disengaged employee may range from someone doing the bare minimum at work, up to an employee who is actively damaging the company's work output and reputation.
Managerial psychology is a sub-discipline of industrial and organizational psychology that focuses on the effectiveness of individuals and groups in the workplace, using behavioral science.
Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture. Although it is to both organizational behavior and industrial and organizational psychology as well as business ethics on the micro and macro levels, organizational ethics is neither organizational behavior nor industrial and organizational psychology, nor is it solely business ethics. Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.
Work motivation is a person's internal disposition toward work. To further this, an incentive is the anticipated reward or aversive event available in the environment. While motivation can often be used as a tool to help predict behavior, it varies greatly among individuals and must often be combined with ability and environmental factors to actually influence behavior and performance. Results from a 2012 study, which examined age-related differences in work motivation, suggest a "shift in people's motives" rather than a general decline in motivation with age. That is, it seemed that older employees were less motivated by extrinsically related features of a job, but more by intrinsically rewarding job features. Work motivation is strongly influenced by certain cultural characteristics. Between countries with comparable levels of economic development, collectivist countries tend to have higher levels of work motivation than do countries that tend toward individualism. Similarly measured, higher levels of work motivation can be found in countries that exhibit a long versus a short-term orientation. Also, while national income is not itself a strong predictor of work motivation, indicators that describe a nation's economic strength and stability, such as life expectancy, are. Work motivation decreases as a nation's long-term economic strength increases. Currently work motivation research has explored motivation that may not be consciously driven. This method goal setting is referred to as goal priming.
Employee motivation is an intrinsic and internal drive to put forth the necessary effort and action towards work-related activities. It has been broadly defined as the "psychological forces that determine the direction of a person's behavior in an organisation, a person's level of effort and a person's level of persistence". Also, "Motivation can be thought of as the willingness to expend energy to achieve a goal or a reward. Motivation at work has been defined as 'the sum of the processes that influence the arousal, direction, and maintenance of behaviors relevant to work settings'." Motivated employees are essential to the success of an organization as motivated employees are generally more productive at the work place.
Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
Job characteristics theory is a theory of work design. It provides “a set of implementing principles for enriching jobs in organizational settings”. The original version of job characteristics theory proposed a model of five “core” job characteristics that affect five work-related outcomes through three psychological states.