tage is that usually companies will pay their best employees the highest awards and their least performing employees the smaller awards.This is a very effective way to make the employees who get the higher awards feel much more appreciated and motivated to improve their performances and this will then lead to a better productivity for the company, which is another advantage.The best rewarded employees are more willing to stay within the company and the employees who get the lower awards are more likely to leave the company so that with time only the best employees will remain in the company.Another advantage is that by connecting the company’s success with the payment of the employees the company can reduce it’s labor costs.The last advantage would be that incentive programs make employees focus more on the objectives of the company and this will help the company reach their goals more easily. Incentive programs can be effective for companies to motivate their employees because money has a lot of value for some employees.When a company shows an employee that they are willing to pay him/her more reward money based on their performances, the employee will feel appreciated and needed by the company. They will realize that the company is really satisfied with their functioning in the company and this can motivate the employees to improve their performances. Chapter 6 The importance of performance appraisals. Managers who evaluate the performances of their employees can motivate their employees through performance appraisals.Any procedure that involves; setting work standards ,compare employee performances to the work standards and/or providing feedback to employees can be related to performance appraisals.A performance appraisal is a meeting between a manager and an employee.The purpose of this meeting is to evaluate the performance, behavior, knowledge and skills ...
