3117). The study focuses on how the universities design motivation plan for their employees and the consequences of such motivation plans. Although employee’s motivation is meant to increase performance of the organization, poorly designed compensation plan may discourage some workers and result to decline in the overall performance of the workers.
London (1995, p.37), uses tournament theory to elaborate how the size of the prize, players’ chances of winning the prizes and the cost of players’ effort to implement the undertaking influences the achievement of the players’ objectives and performance of the game. In the first incentive the prize for the players was independent of the outcome of performance, the second incentive involved single large prize for the first winner only while in the third category, there were different prizes for different winners and this depended on individual performance. The result of this game depicted that the workers’ output was maximum when there are various prizes for different winners (Dohmen &amp. Falk, 2010. P.152). A few people had an incentive to pursue the prize when a single large prize is offered while the performance was lowest when the performance had no effect on the individual earning. The tournament theory has two main challenges which include competition among the participants or sabotage of the effort.
From the game theory, the productivity of the workers is greater if the incentive scheme gives all employees equal chance of sharing revenue of the organization (Nalbantian &amp. Schotter, 1997, p. 3119). The players’ effort is dependent on the expected prizes, the effort involved in scooping the reward and the probability of winning the game. The effort of the participants is at maximum where the probability of winning or losing the game is balanced. Therefore, in a university set-up where the employees are hired on contract with hope of getting a

You may also like

Investing In Early Developing Country

The aspect of globalization was the core consideration with regard

Global and Products Industry Porter’s Six Forces Analysis

Porter’s six forces analysis of the global paper industry would

The Key Aspects of Criminal Law

eath, or the intent to cause grievous body harm and