What are some limitations of implementing monetary reward systems in the public sector? Are the non-monetary reward systems at the workplace effective in motivating employees? Why or why not?
Monetary reward systems can often lead to undesired results for the firm. The compensation system of the financial services industry is much to blame for the crash of the US financial markets. Agents (employees) learn which products or markets will return the highest compensation to his or herself. They may (and frequently do) put clients in products with high fees and high compensation rates rather than a comparable product that will save them the fees that would otherwise be earning compounded interest. Issues such as ...
This solution discusses some of the pros and cons of both monetary and non-monetary reward systems. 329 words with one reference.