GENERAL KNOWLEDGE

Detailed explanation-1: -The goal-setting theory suggests that an employee’s performance has been directly linked with the goals set by them.

Detailed explanation-2: -If we want it to do something for us, we must provide rewards to it in such a way that in maximizing them the agent will also achieve our goals. It is thus critical that the rewards we set up truly indicate what we want accomplished.

Detailed explanation-3: -Motivation is the process that initiates, guides, and maintains goal-oriented behaviors.

Detailed explanation-4: -Goals and objectives are not a basis for reward systems. Historic financial goals and objectives, even though financial outcomes are wide ranging in scope, are also purely historic. The manager should be directed and controlled by the objectives of performance rather than by his/her boss.

Detailed explanation-5: -If a reward is based on performance, other employees may become demotivated. Another disadvantage of a reward system is that some employees may be led to believe they have poor performance at work. Those who lack faith in their performance abilities may become disheartened.