Long-Term and Short-Term Incentives.

LONG-TERM AND SHORT-TERM INCENTIVES. 1

Long-Term andShort-Term Incentives.

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Long-Term andShort-Term Incentives for Middle managers

According to Herriot (1995), middlemanagers play a critical role in improving the general performanceand engagement within an organization. Middle managers bring theorganization together by bridging the gap between the workers in thelow level and the top management. They, therefore, have a greatinfluence on the productivity of the staffs on the organization. Thisfact clearly shows how important they are, and organizations shouldgive them better incentives as a means to motivate them to perform intheir work.

Recent studies have shown that about25% of the middle managers are dissatisfied with their job. The mainreasons resulting to this includes: position monotony, lack ofprospects for advancement, promotion of the newly recruited peopleinstead of promoting those who have worked there for long, middlemanagers not given specific incentives while top management has beengiven specific ones, them being misused by the senior management and,lastly lack of respect from the higher manager (Wharton, 2008). Whenthe right short term and long term incentives are put in place, themiddle managers will be motivated and become more efficient in theirwork, increasing the overall productivity of the organization.

Long-term incentives.

To provide long-term incentives forthe middle management, organizations should properly set themselvesready to fit the needs of this demographic. According to (Acona,2005), many organizations that have succeeded in the 21stcentury are because they have flattened management tiers. Whenorganization`s managerial structure is flattened, it creates anenvironment that is useful to the middle managers. Middle managersget a new role, levers, and other responsibilities. This strategyreduces overreliance on the top managers and gives the middlemanagement a chance to exercise their role fully and their positionremain relevance in the administration of the organization.

Another long-term incentive is givingthe middle management the priority when it comes to new positions inthe top management. Some organizations have a habit of hiring peoplefrom outside when there is a new post in the top management, and thishas led to most of the middle managers getting dissatisfied. Thissituation has damaged the morale of the middle management and hasmade them believe that the whole organization has no confidence intheir abilities to deliver. This further proves to them that theorganization has no interest in recognizing and rewarding them forthe services and time they have offered to the organization. In thereal sense, the external people who are being hired to these highmanagerial posts are not any better than the internal workers sincethe internal workers have great knowledge about the organization.They, therefore, are best fitted to these positions and promotionwhenever any chance comes.

Short term incentives.

One of the most effective short-termincentive that motivates middle managers is the reward given to themas a result of their excellent performance in their normal workduties. Organizations should give incentives not only for a specialperformance on a task given but also on the success of the normalduties that contribute to the overall improvement of theorganization`s performance. In many instances in organizations,incentives are only given when there is an achievement beyond thework that was allocated. This, therefore, shows no concern for thework of the middle managers, and they lose motivation in the process.Incentives should be given to everybody who has contributed to thesuccess of the organization regardless of special or normal duties(Miller, 2012).

Another short term is givingtransparent and fair incentives to the middle managers. In manyorganizations, middle manager`s incentives are not clearly outlinedand therefore they don`t get what is due to them. The seniormanager`s incentives take this advantage and end up taking much thatwas supposed to be awarded to the middle-level managers. Thissituation makes the middle managers lose motivation on theirpositions since they do a lot of work but the higher managers areenjoying the incentives and bonuses. To curb this habit, theorganization should come up with a tangible system of incentives thatis designed specifically for the middle management.

Middle management requires separateconsideration because for a long time, they have not been wellconsidered by the organizations, and their incentives are not clearlystipulated. It has not been put in black and white what entails theirincentives unlike or the top management whose incentives are clear,and they know what the organization should give regarding incentives.The top management has continued to take the advantage of the middlemanagement by getting the incentives that were supposed to go to themiddle management, and this has greatly affected the morale of themiddle managers affecting their efficiency and the overallproductivity of the organization. It is, therefore, a better thing toseparate them so that they can benefit fully from the incentives theorganization provides. This will boost their morale and love fortheir job and position at large.

Reference.

Acona. D.(2005). Managing for the Future. Canada: Thomson.

Herriot P,Pemberton C. (1995). A new deal for middle managers. Peoplemanagement.

Miller. S. (2012). Incentive compensation tips and pitfalls shared.Society for Human Resource Management. Boston: BostonConsulting Group.

Wharton.(2008). Caught in the middle: Why developing and retaining middlemanagers can be so challenging: University ofPennsylvania.