Carmen knows that she will not have bonus dollars to reward her high-performing management team this year due to a shortfall in company profits. Furthermore, a companywide hiring and promotion freeze will prohibit her from hiring entry-level workers to allow existing staff to be promoted to higher levels. In response, she has arranged for her management team to attend the annual corporate planning meeting, affording them a unique opportunity to interact with and gain recognition by company executives. She has instituted this nonmonetary reward because

Question

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When monetary rewards such as pay raises and bonuses are not available, nonmonetary rewards can still be effective in motivating employees. In this case, Carmen is using the opportunity for her management team to interact with company executives as a way to recognize their performance and provide a form of reward. This is consistent with the idea that nonmonetary rewards can be effective in motivating employees when traditional forms of rewards, such as pay and promotions, are not available.

Carmen Knows That She Will Not Have Bonus Dollars to Reward