The Motivation And Rewards Management Essay

Motivation and wagess has been chosen as our subject for this assignment. Motivation and wagess is really of import for any organisation or even any industry. Motivation is a behaviour that can non be created but can be influence while wagess are something that the employees gained from making a good occupation in their work ( Thomas, 2009 ) .

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AirAsia was the company that chosen for this assignment. AirAsia do implement the motive and wagess in their company successfully. AirAsia is a low-priced air hose concern which had become more and more popular around the universe. AirAsia was established on twelvemonth 1993 and started its concern in twelvemonth 1996 ( McNamara & A ; Troftgruben, n.d ) . Government owned corporation is the found of this company. AirAsia is the largest company that presenting innovator of low-priced travel and largest low-fare and in Asia and they have their slogan which known as “ Now Everyone Can Fly ” .

AirAsia is a successful illustration for other air hose companies. It has been transformed as an unthinkable construct to be successful in air hose industry. This success can be proved from a money-losing undertaking to profitable. Although AirAsia presenting no-frills service to their client and utilizing 2nd manus aircraft, but it would still be a menace for other Asia air hose companies ( Michael Swathe, 2011 ) . AirAsia have a really good public presentation in consumer head by offering low menus, bulk on-time record for flights and keeping staff with high productiveness and work ethic.

Based on the information in Indonesia Straits Times, it is stated that in August 2011, Malayan Airline signifier an confederation with Air Asia but the understanding of both air hoses were voided because the confederation was struck down by the Malayan authorities. ( Leslie Lopez, 2011 ) AirAsia now is a successful air hose company which expand from 2 planes to 80 planes and from 200 000 riders to over 75 million riders in 7 old ages clip. It is a seeable success that we can see twelvemonth by twelvemonth. ( McNamara, 2012 )



In direction, motive defined as a power to coerce person to work in certain manner so that it able to make certain coveted end. As what people ever said, motivated people ever work harder as comparison with those unmotivated people. Harmonizing to Lavinsky ( 2012 ) , a company should do the employees feel making something meaningful. As a consequence of a study done by BNET show that bulk agrees making something meaningful were the most motivative things about work.

Harmonizing to Lavinsky ( 2012 ) , motive is internal and external factors that inspire employee involvement, in which they need to, listen, concentrate and understand employee demands and wants through an effectual communicating. A company director should alter the inquiry from Whom to How. An illustration given by Lavinsky ( 2012 ) , say ‘How we can better this procedure? ‘ instead than, ‘Who screwed up this up? ‘ This action might able to actuate the employees so that they will be more careful for their work so that wo n’t let down their company.

To hold motivated workers, a director must handle workers as single, empower employees, redesigning occupations, and supply a comfy and flexible workplace. Below are the significance of the effectual direction patterns ( Griffin, 2006 ) : –

Effective direction patterns


Empowering employees

Empowering employees means that giving the person in an organisation authorization, liberty, trust and encouragement to finish their undertakings.

Redesigning occupations

Redesigning occupations is one of the best motives in the workplace. Usually persons go to work every twenty-four hours making the same modus operandi. This makes the workers become less motivated. Something really can be done by the directors to better the status before the employees become de-motivated and bored. The manner that director can utilize is occupation redesign. Concern and cognition are required for directors and have them convey it with them to the organisation and so use motivational theories into their work to better the productiveness and satisfaction of the employees.

Making flexibleness

World nowadays is all about flexibleness. Peoples presents have excessively much things to take attention of but they do non hold adequate clip to make it. Employees value more about personal clip. Due to the household needs, a traditional nine-to-five working hours every twenty-four hours except Sunday may non work for many people. Therefore, flexibleness which let employees to command and put their ain working hours is the best.

In AirAsia point of position, they believe that their full staff act as subscriber for the company, hence, they ever been treated as a large household and every bit. This is an illustration of authorising employees. The company will hold invariably talked with their employee in order to understand their demands and wants. They will form a monthly staff forum and make some merriment plans to assist them let go of their working emphasis. In the event, they besides give employees an chance to talk out their point of position towards their on the job topographic point ( McNamara, 2012 ) . Harmonizing to Zhu ( 2010 ) , even though the wages gave to employees were low, but all employees were giving wide scope of inducements. Such as, portion offers stock options, productiveness and performance-based fillip. Those motives may give employees sense of ‘ownership ‘ and it able to better in effectual and focused work force.

Despite that, Airasia employees are able to execute in multiple functions in level organisational construction because the air hose has implemented a flexible work regulations ( Zhu, 2010 ) . This can be an illustration of making flexibleness. Flight attenders besides can be work at check-in counter. They can alter to different section after they work for one month. By making this, the employees wo n’t be bored to working in the same country. Flexibility will actuate the employees to work harder because they are happy with all the flexible regulations given and therefore, they can derive more experiences in that industry. Even though AirAsia ever try to minimise their disbursals cost, but they are really determined on employee work ethic. Therefore, AirAsia ever provided their employees the best preparation and guarantee that they are happy in their on the job topographic point. ( Foo, 2012 ) This can be called as redesigning occupations. As a consequence, AirAsia gets to set up a Numberss of quality and excellence employees because the employees are satisfied with their occupations that are ever fresh to them.


A wages is a strategy to back up desirable behaviour. Wagess can be in footings of fiscal and non-financial. Example of fiscal wages is bonus wage and illustration of non-financial wages is degree of accomplishment, chance to growing or even praise from the top direction or director for making a good occupation.

Reward is different from motive. Reward is something that the worker or employees gain from seting attempt in their occupations while motive is something that they need to hold in order to set more attempt in their occupations. Intrinsic and extrinsic are the two types of wagess that can actuate employees. ( Mcrill, n.d ) .

Types of wagess


Intrinsic wagess

Intrinsic wagess are self-administrated. An intrinsic wages refers to the motive that comes from inside of an person instead than from any outside wagess such as fillip, gifts and so on. It is an result that gives an single personal satisfaction such as an experience after finishing a occupation, professional growing and sense of pleasance. The person will experience good because he or she have the feeling of acquisition and accomplishing something which can be besides called as personal development. Besides that, the person will besides hold the feeling of competence and self-denial over her work. The motivational stimulation in intrinsic do non depends on the actions of other people. People ever trust that the most powerful wagess come from a individual ‘s interior.

Extrinsic wagess

Extrinsic wagess are externally administrated. Extrinsic wagess are normally can be seen like fiscal in nature. For illustration, an addition in rewards, particular assignments or inducements for making some quota. In add-on, extrinsic wagess can be besides every bit simple as acquiring a verbal regards, public acknowledgment, and awards for accomplishing something, publicities and some other excess duty. The motivational stimulation in extrinsic depends on the actions of other people which is besides opposite from the intrinsic wagess because it originates outside the person. All those wagess are really of import for most of the workers therefore the wagess can be actuating. They will experience they are valued or been appreciated.

In every direction, intrinsic wages is a must to be given to the employees. While in AirAsia, they have a really good relationship with their employees. Employees reward given by AirAsia is really worthy. Every twelvemonth, some of the employees will be chosen to acquire free flights to different finishs if they do good in their occupations. They besides provided up to 90 % of price reduction for their employees on grant travel. This encourages employees to set more attempt on their duty in order to acquire the wagess.

Besides that, AirAsia presenting fillips based upon each employee ‘s part to the company productiveness, and expects to increase trueness through its ESOS ( Employee portion presenting strategy ) which will be available to all employees and it besides may assist employee to better their public presentation. The group ‘s direction encourages unfastened communicating which creates a dynamic. AirAsia besides presenting long service awards for their employees who work more than 10 old ages.

Motivation and Wagess

Although its reference above that wages is different from motive, under some fortunes, reward able to construct in motive. In societal psychological footings, it besides referred as ‘the hidden cost of wagess ‘ . Harmonizing to Frey ( n.d ) , he has utilizing an economic construct to specify this theory, which is bonus against attempt. A purely monetary value consequence shown addition in fillip besides can increase employee attempt towards their work. In other word, motive ever link with wages.

AirAsia do use this in their direction. Not merely AirAsia, even other companies will make. Before they serve the client, they do happen many ways to fulfill the employees such as giving motive and wagess. When the employees are satisfied and happy with the occupation, they will be more enjoying and run their undertakings better. Therefore, AirAsia clients will be treated in a better quality of service.

Last, as what have discussed above, a fiscal or non-financial wagess might given by the company to their employee in order to actuate them to be more responsible towards their occupation. Example, AirAsia award fillips to their employees based on their public presentation, so it is a sort of motive that able actuate their employees to work harder in order to accomplish the coveted end, which is to acquire the fillip.


Multiple functions public presentation of AirAsia in a level organisational construction has the possibility as mentioned by Zhu ( 2010 ) which is to compromise the AirAsia ‘s production in the hereafter as it evolves. The efficiency and the effectivity on undertaking possibly lowered when multiple undertakings assign to the employee. This is because employee will experience de-motivated when the occupation range assign to them is excessively broad for them to concentrate on the occupation. Besides that, excessively broad of occupation range and multiple undertaking assign to employee can take to confusion on the occupation in the organisation. Hence, this could perchance ensue in a low efficient province for the AirAsia as the organisation seeking to spread out for a better growing and impacting the air hose ‘s productiveness indirectly because the ability to execute is a short-run worthwhile competitory advantage due to over dependance on the employees ( Zhu, 2010 ) .

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Furthermore, Air Asia receives a batch ailment from clients on their service ( Solano, 2012 ) . There are several ailments has been made from the Air Asia clients. Flight holds, unneeded charge payment being behavior and non able to alter the flight or acquire a refund when the clients could non do it on the engagement day of the month were some of the ailments that the clients made. There are besides ailments like bad services from the staff that are in charge on the peculiar displacement. Besides that, as what stated by Solano ( 2012 ) , Air Asia did non hold their ain care, fix and inspection and repair ( MRO ) installation. Therefore, if Air Asia continually received the same ailments and did non do any betterments on the topographic point, this would ensue the loss of clients and besides the productiveness of the company. As assurance and satisfaction degrees of clients bead, it affects Air Asia profitableness.

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In add-on, Air Asia has fast track publicity as what mentioned by the Malaysia Airline Families. Fast path publicity really means that it is the fastest and most direct path to achievement. Malaysia Airline Families says that if an employee worked for Air Asia since 1997, his or her wage will still stay based on the last drawn salary as of twelvemonth 1997. Last drawn wage is the last drawn monthly indispensable wages which besides includes the pension allowance. When the payment of wages are below their outlooks and no increase that is being awarded from twelvemonth to twelvemonth, this could take employees to be de-motivated from working in the organisations. Despite that, they might be after to switch to the other company that provides them with increase that they think they should hold it. ( Malaysiairlinefamilies, 2013 )

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However, Air Asia ‘s employees were non unionized as been stated by Zhu ( 2010 ) .Air Asia policy was chiefly focused on maximising efficiency and productiveness of the company. Besides that, Air Asia besides tends to maintain their staff costs at a consistent degree with low-priced bearer industry criterions. This means that the Air Asia employees were provided with a broad scope of inducements. Even though wages offered to the employees were lower than the wages of their challengers, at least Air Asia still offer their employees with a broad scope of inducements. This shows that Air Asia still give their employees some benefits. The awards being given to the employees are the performance-based fillips ( PBB ) , portion offers, and stock options ( Zhu, 2010 ) .

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Other than that, pilots in Air Asia were provided with some wagess or benefits to better the flight operation. Air Asia adopted a sector wage policy. They can both maintain flight and minimum their operating clip. Besides that, flight sectors can be covered every bit many as possible within a twenty-four hours. Therefore, Air Asia adopted a sector wage instead than an hourly wage graduated table for their pilots. Furthermore, Air Asia gets to cut down the figure of cabin crew or can be said by salvaging on employee ‘s cost is because of the absence of the in-flight services ( Zhu, 2010 ) . This can be said as a method of minimising organisational disbursals. It is a tendency in the planetary air hose industry nowadays particularly in the Air Asia.

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We extremely recommend that the direction of AirAsia should reconsider their preparation class for their employees and supply re-training if possible. Harmonizing to Adams ( 1998 ) , direction preparation classs fail because they: ( I ) are excessively generalized ; ( two ) fail to run into the specific demands of trainees ; and ( three ) fail to take into personal features such as age, educational back-ground, old work experience and willingness to take part in preparation. Besides that, Analoui ( 1997 ) mentioned that sing the perceptual experiences, personal involvements, aims and penchants of trainees ‘ could ensue in greater apprehension of developing aims. Hence, employees will hold a clearer position of the functions in executing a certain undertaking and transport it out more efficaciously. Role perceptual experience is one of the MARS theoretical account constituent which affects employees voluntary behaviors and public presentation. The direction can kill two birds with one rock by implementing it because it will increase the effectivity and efficiency of the direction. For illustration, every actions performed by the employees is in the best involvement of the company and non otherwise.

Besides that, AirAsia ‘s direction should besides farther better on their organisational ( affectional ) committedness in the workplace. Affectional committedness – is the employee ‘s emotion fond regard to, designation with and engagement in a peculiar organisation. In another word, affectional committedness is a individual ‘s feeling of trueness to the topographic point where he or she works. First and first, organisational committedness can be boosted via organisational comprehension. This refers to the overall comprehension of the organisation, including its strategic way, societal kineticss and physical layout. For case, giving staff information and chances to maintain up to day of the month about organisational events, communicate with colleagues, detect what go arounding in different parts of the organisation and survey about organisation ‘s history and future programs. Besides that, trust is the key to unlock employees ‘ trueness. This refers to the positive outlooks that one individual has towards another individual or group in state of affairs affecting hazard. AirAsia should increase employees ‘ occupation security to heighten trust that employees have in the direction and the employment relationship.

Last but non least, Four-drive theory can be practically applied to the direction of AirAsia. The theory explains the innate drivers to get, bond, learn and defend and that incorporates both emotions and reason. Besides that, emotions play a cardinal function in employee motive. These thrusts create emotions, which represent the premier mover or beginning of attempt of single behavior. The first recommendation is that the direction of AirAsia should make a best workplace that helps employees to carry through all four thrusts. Therefore, the direction should supply sufficient wagess, larning chances, societal interaction and so forth for all employees. The 2nd recommendation is that fulfillment of the four thrusts must be kept in balance ; that is, AirAsia should avoid excessively much or excessively small chance to carry through each thrust because the four thrusts counterbalance each other. For illustration, alteration and freshness in the workplace will ease the thrust to grok but excessively much of it will originate the thrust to support to such extent that employees become territorial and immune to alter. Therefore, it is critical for the direction to supply balanced chance to to the full use it.


Air Asia as known by everyone that a successful and good established air hose company non merely in our state Malaysia but besides in the universe. There have many manner to specify the successful of this air hose company, one of it is utilizing the right manner to pull off the company, and the manner is motive and wagess towards the company, all of that we had mentioned above. Everyone knows that human capital is of import for a company, and the human capital of a company means is employee of one company. A motivated and rewarded employee can be a productive employee. A productive employee can be a really profitable employee. While employees that are de-motivated, they will go less productive, less originative, and this may do less of an plus towards the company. Now more than of all time, company inevitably motivated employees. When the employees become more productive, the company will besides go more productive, while productiveness of a company addition, the net income of a company will besides increase. With this the company will remain in the competitory concern and ready to travel suppress the universe.

In this assignment, we have learned much of things, one of it is motive and wagess are a good corporate civilization that will direct a company to a successful manner. Furthermore although Air Asia is a successful and good established air hose company, it besides may hold some failings that we mentioned in the findings portion, but that is non a job. We merely necessitate to happen out the manner to work out the job. By this a company merely can go on taking in the industry and unharmed in this sort of we call it competitory and barbarous concern universe.


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