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The purpose of this paper is to explore the use of Merit Pay and Incentives as motivators for increased productivity The key focus is the system at Richmond Memorial Hospital To do so one must begin at the beginning The use of financial incentives financial rewards paid to workers whose production exceeds some predetermined standard was popularized by Frederick Taylor in the late 1800s As a supervisory employee of the Midvale Steel Company he had become concerned with what he called systematic soldiering This was the tendency of employees to work at the slowest pace possible and the fact that some of these same workers still had the energy to run home and work on their cabins even after a hard 12-hour day Taylor knew that if he could find some way to harness this energy during the workday huge productivity gains would be achieved REFERENCE Thus was born the concept of motivational and incentive systems What is motivation The root word is move which would mean that anyone who is moved to do something is motivated Therefore sitting on a tack or at least the pain associated with it is a motivator For those of us in Graduate School we are aware that without a B average we will be eliminated from the program Maintaining that average is our motivator Attaining the certificate of graduation is our incentive In psychology at its most basic a motivator is that which impels or compels an individual to act toward meeting a need On a physiological level thirst hunger and sex are motivators or drives They are basic needs which must be met Relating this to a hospital environment it is not base compensation which drives the employee but what the base compensation can satisfy in a higher level of needs Money cant buy love but it can buy some security such as insurance benefits After basic and security needs are met compensation is
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