The Role of a Reward in Employee Motivation

7/31/2019 The Role of a Reward in Employee Motivation

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The Role of a Reward in Employee

Motivation

Many employees are motivated by two goals: earning a paycheck and doing work that makesthem proud. The offer of an additional reward gives an employee that extra motivation to go

above and beyond. Some rewards may cost money, whereas others are investments in time and

effort. All can contribute to a more pleasant work environment.

Incentive

Employees must know that hard work and a high level of achievement will be rewarded

financially. According to Microsoft's Business website, a policy that offers incentives in

exchange for achievement can motivate all employees to prove their worth. When worker

productivity goes up, the bottom line often increases far in excess of the monetary rewards

distributed.

Uniting the Team

Employees are motivated by a workplace atmosphere of mutual respect. A reward emphasizes

your respect for your employee and encourages fellow employees to show respect to each other.

When the team is united, the lines of communication are open, and employees are likely to share

good ideas and put forth additional effort in the interest of the company's success. The Business

Research Lab points out that rewards motivate employees to see the company's mission as their

own. Instead of working for his own financial benefit, an employee who is amply rewarded is

more likely to personalize the company mission.

Employee Retention

An employee who has been rewarded is often more motivated to remain with the company. It

can cost a business quite a bit to deal with the loss of old employees and the training of new

ones. Rewards, given to employees who are considering leaving the company, may increase your

employee retention statistics and decrease your long-term training costs.

Self-Motivation

A good manager can encourage an employee to work harder and better from time to time, but a

reward can go a long way toward building employee self-motivation. According to Carter

McNamara, writing for the Free Management Library, the most effective rewards are tailored to

an employee's needs. When deciding what kind of rewards to give to employees, think of their

needs. An employee with children, for example, may be highly motivated to achieve more in the

workplace if you offer him additional time off to spend with his family.


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ccounting Concepts & Conventions Presentation

Transcript

ACCOUNTING CONCEPTS -: In order to make the accounting language convey the same

meaning to all people & to make it more meaningful, most of the accountants have agreed ona number of concepts which are usually followed for preparing the financial statements.

These concepts provide a foundation for accounting process. No enterprise can prepare its

financial statements without considering these concepts.

BUSINESS ENTITY CONCEPT Business is treated as separate & distinct from its members

Separate set of books are prepared. Proprietor is treated as creditor of the business. For other

business of proprietor different books are prepared.

MONEY MEASUREMENT CONCEPT Transactions of monetary nature are recorded.

Transactions of qualitative nature, even though of great importance to business are not

considered.

GOING CONCERN CONCEPT Business will continue for a long period. As per this

concept, fixed assets are recorded at their original cost & depreciation is charged on these

assets. Because of this concept, outside parties enter into long term contracts with the

enterprise.

ACCOUNTING PERIOD CONCEPT Entire life of the firm is divided into time intervals for

ascertaining the profits/losses are known as accounting periods. Accounting period is of two

types- financial year(1 st Apr to 31 st March) & calendar year(1 st Jan to 31 st Dec).

For taxation purposes financial year is adopted as prescribed by the Govt. Companies havingtheir shares listed on stock exchange publishes their quarterly results.

HISTORICAL COST CONCEPT Assets are recorded at their original price. This cost serves

the basis for further accounting treatment of the asset. Acquisition cost relates to the past i.e.

it is known as historical cost.

JUSTIFICATION FOR HISTORICAL COST CONCEPT This cost is objectively verifiable.

Justified by going concern concept. Current values are difficult to determine. Difficult to

keep track of up down of the market price.

DRAWBACKS OF HISTORICAL CONCEPT Assets for which nothing is paid will not berecorded like reputation, brand value, etc. Information based on historical cost may not be

useful to its members.

DUAL ASPECT CONCEPT Every transaction recorded in books affects at least two

accounts. If one is debited then the other one is credited with same amount. This system of

recording is known as DOUBLE ENTRY SYSTEM. ASSETS = LIABILITIES +CAPITAL


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REVENUE RECOGNITION/REALISATION CONCEPT Revenue means the addition to the

capital as a result of business operations. Revenue is realised on three basis-: Basis of cash

Basis of sale Basis of production

MATCHING CONCEPT All the revenue of a particular period will be matched with the cost

of that period for determining the net profits of that period. Accordingly, for matching costswith revenue, first revenue should be recognised & then costs incurred for generating that

revenue should be recognised.

Following points must be considered while matching costs with revenue-: Outstanding

expenses though not paid in cash are shown in the P&L a/c. Prepaid expenses are not shown

in the P&L a/c. Closing stock should be carried over to the next period as opening stock.

Income receivable should be added in the revenue & income received in advance should be

deducted from revenue.

ACCRUAL CONCEPT In this concept revenue is recorded when sales are made or services

are rendered & it is immaterial whether cash is received or not. Same with the expenses i.e.they are recorded in the accounting period in which they assist in earning the revenues

whether the cash is paid for them or not.

OBJECTIVITY CONCEPT Accounting transactions should be recorded in an objective

manner, free from the personal bias of either management or the accountant who prepares the

accounts. It is possible only when each transaction is supported by verifiable documents &

vouchers such as cash memos, invoices.

TIMELINESS This principle states that the information should be provided to the users at

right time for the purpose of decision making. Delay in providing accounts serves no

usefulness for the users for decision making.

COST BENEFIT PRINCIPLE This principle states that the cost incurred in applying the

principles should be less than the profits derived from them.

ACCOUNTING CONVENTIONS An accounting convention may be defined as a custom or

generally accepted practice which is adopted either by general agreement or common consent

among accountants.

)CONVENTION OF FULL DICLOSURE Information relating to the economic affairs of the

enterprise should be completely disclosed which are of material interest to the users.

Proforma & contents of balance sheet & P&L a/c are prescribed by Companies Act. It doesnot mean that leaking out the secrets of the business.

CONVENTION OF CONSISTENCY Accounting method should remain consistent year by

year. This facilitates comparison in both directions i.e. intra firm & inter firm. This does not

mean that a firm cannot change the accounting methods according to the changed

circumstances of the business.


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The Role of a Reward in Employee Motivation