Within the organization employee self-esteem is affecting job performance. This particular organization is a hospital and the service is one that provides housing services to homeless veterans. Historically, the overall performance has been at a high level. Recently, this culture has shifted. Performance measures are being met only 50% of the time as compared to nearly 100% within the past two years. Performance is suffering, the question is why and how? There are two schools of thoughts that need to be considered. There are three pieces of data that are recorded on a semi-annual basis that can be used to measure the overall performance of employees. These tools include performance measures, supervisor feedback sessions, and employee surveys. The two proposed solutions to these problems include increasing morale building activities and the second is giving a performance based bonus.

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The use of Fiscal Incentives
For each 10% increase in meeting the established criteria a bonus of $500.00 would be distributed for each employee. These fiscal incentives would be paid on an annual basis at the time of the annual review. Each bonus would be paid annually to each employee of the team.

The use of morale building programs
The second proposal is one in which the overall team dynamics and overall self-esteem of the team are worked on through a series of new initiatives. These initiatives would consists of a weekly team meeting, a monthly team lunch, and a monthly performer of the month award. These programs would consist of socializing and team building exercises and recognition.

A Measurement of the Worth of the use of Fiscal Bonuses
This incentive by nature would be costly. It proposes that as opposed to individual performance measures being the deciding factor in bonuses, the performance of the team would determine the reward. The cost of such a bonus would greatly increase the potential overall salaries and budget of the specific section of the hospital. Additionally, if there is a dramatic increase in performance the potential future implications of such a bonus system may impact future manning and overall pay structures.

The desirability of strong performance as it relates to team concepts is the premise of such a fiscal strategy. A performer is having an impact on the potential bonus of other team members. Strong performance for fiscal reward links itself to the desire that employees have to earn more money.

The durability of this incentive leaves some potential for a costly bonus structure that may only be seasonal. If the bonus structure is established and yields positive outcomes, its durability may not be long-standing because of the cost.

The efficiency of such a fiscal program is relying on the motivating factors of all the employees to be the same. There is no guarantee of an efficient bonus structure that produces positive outcomes because it is depending upon the value of money to the individual employees involved.

An annual increase in the budget thresholds for this team in the hospital is not a guarantee. In fact, this is a pilot that is not guaranteed to yield results. Additionally, it is dependent on a consistent stream of a budget that equals current standards and exceeds those standards for years to come.

A Measurement of the Worth of Morale Building Programs

The cost of such a program is the time to conduct team building meetings and also team lunches. Additionally, the cost of lunch, once per month is limited and potential benefits are worth the cost.

This program is capitalizing on making the workplace a desirable place to work. By building the intrinsic value of each employee we are capitalizing on building value in each employee thus yielding a more motivated employee.

Such a program can withstand pressure. As employees begin looking forward to these morale building events the value of such events will become more durable. Employees will begin owning such events and coordinating them in advance.

As intrinsic value of employees is built over time, greater efficiency will follow. As morale increases so will employee performance. As employees feel more valued, they will all increase their potential and efficiency will increase.

The morale exercises are practical because they can be built into the weekly schedule according to employee schedules. Additionally each of these exercises are practical in nature because they are implementing team collaborations that occur currently, however the motives of these meetings and social events are more directed.

Due to the nature of the problems within the organization, performance must be increased in the best method possible. It has been validated that performance based bonuses that are team based do increase the individual performances because employees are having an impact on fellow teammates (Achim, Dragolea, Balan, 2013). However, the fore-mentioned morale proposal is satisfying other needs that are greater than the mere fiscal advantage to self. These needs include self-esteem and feeling a sense of worth. As this self-actualization occurs, employees are no longer employees in the sense of a job they go to everyday. This sense of belonging creates a greater sense of responsibility to the organizational mission. (Maslen & Hopkins, 2014).

At the end of the fiscal year the results were published using the criteria of performance reports, survey, and performance measures. Data is compared with previous years. The performance measures have increased by 40% satisfaction by 20%, and surveys by 40%.

  • Achim, I. M., Dragolea, L., & Balan, G. (2013). the importance of employee motivation to increase organizational performance. Annales Universitatis Apulensis: Series Oeconomica, 15(2), 685.
  • Maslen, S., & Hopkins, A. (2014). Do incentives work? A qualitative study of managers’ motivations in hazardous industries. Safety Science, 70, 419-428. doi:10.1016/j.ssci.2014.07.008