Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others. To what extent is this style of management effective? Are there better ways of encouraging employees to work hard?

It is better to motivate employes for their exceptional contribution to an organization by employer. Such pratice have both positive and negative impacts. Positive impact of rewarding employes is work efficiency of employes would increase and that directle helps to improve the productivity of an organization. Employes could do better performance and as result company will go on profit. For instance; Mr. A works in ABC bank Limited and He knows that he will get reward for better performance. So he work hard and able to meet his target then he gets extra money for it. Here, we can easily understand that the employee work hard to get his target which is not only his target but the target of an organization as well, and he achieve the target as result he get rewards by getting extra money that encourages him to work more in future. And employer also get achieve it's target by investing little extra money which will come back to him as dividend. Negative impact of rewarding employes might be, it will create more mental pressure and physical stress to employes. For getting reward they have to spent more time for work which may negatively impact on their relations. This is like cycle employes problem means organizations problem and affect organization as well. For example Mr B work hard and over time for the reward then he couldnot maintain his good health and gets sick. Now the organization should allow him leave which is loss to an organization. In my opinion, rewards giving to employes for better performance is good if it is done in systematically managed way. For instance setting some logical criteria for it. In conclusion, Extra money as reward to better performing employes is effective way to encouraging employes for better performance in an organizayion.