As a boss, the ability to provide your folks with rewards they value comes from your formal authority and position. Pay increases, bonuses, expense accounts, choice work assignments, better work schedules, status symbols (e.g. a large office) are a few examples of rewards that bosses control. Yukl (2010) gives the following six guidelines for using reward power (p. 158):
1. Offer the type of rewards that people desire
2. Offer rewards that are fair and ethical
3. Don’t promise more than you can deliver
4. Explain the criteria for giving rewards and keep it simple
5. Provide rewards as promised if requirements are met
6. Use rewards symbolically (not in a manipulative way)
Rewards work because people like them, but they should always be used with a clear understanding of their limitations. Rewards work well as a method to get people to comply, but they are less effective at building true commitment. Rewards are unlikely to motivate people to put forth any additional effort beyond what is required to complete the task and receive the reward.
When rewards are used frequently as a source of influence, people may come to perceive their relationship to the leader in purely economic terms. They will expect a reward every time they are asked to do something new or unusual. It is more satisfying for both parties to view their relationship in terms of mutual loyalty and friendship. (Yukl, p. 158).
Don’t let your use of rewards turn you into a benevolent dictator in the eyes of your employees. A boss with tight group of sycophants intoxicated by hubris probably has a potent but perverted system of rewards.
One of the most effective rewards you can give to others is simply a sincere “thank you” for a job well done. It costs nothing to express gratitude. Even those with no official authority or position can earn considerable influence simply by recognizing and appreciating the hard work of those around them.
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Timely post. Enjoyed discussing something similar this morning on the call.
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Bret L. Simmons Reply:
October 22nd, 2010 at 9:57 pm
It was a great discussion. Thanks! Bret
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I completely agree. A well-timed “Thank you” costs nothing but is often the most appreciated reward. People want to know that their work matters and is valued.
Also, great application of expectancy theory.
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Bret L. Simmons Reply:
October 22nd, 2010 at 9:59 pm
I love expectancy theory – one of the most useful frameworks for understanding motivation. I’m finding Yukl’s text to be very useful and surprisingly well written. Thanks, Michael! Bret
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Bret,thanks for the thought- provoker. Your post reminded me of clients who struggle with how to reward their “star” employees outside of the usual monetary increases or bonuses. Interestingly, they rarely think of asking them what they’d like! Many organizations provice some latitude for the manager to provide non-traditional rewards, so the ability to be creative in this arena is certainly possible – within reason, of course (and you’ve outlined some of the boundaries to consider).
Such a simple thing – asking your stars how they’d like to be recognized and rewarded. Yet rarely considered.
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Bret L. Simmons Reply:
October 24th, 2010 at 9:49 am
Don’t assume anything about what people want and why they want it. Ask. And the act of asking is itself a reward, a clear sign that you respect and value the individual. Thanks, MJ! Bret
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