One major mistake that employers commit is to assume that monetary rewards contribute to employee motivation. Research shows that compensation does not enhance employee performance, particularly in cognitively complicated assignments. Three factors contribute to motivation. They are autonomy, mastery, and purpose. Employees perform well if allowed to make independent decisions. On the other hand, the mastery of a concept and the desire to enhance one’s skills contribute to motivation. The purpose of an assignment can help employee motivation. Gerhart’s perspective is closer to the truth. The way Gerhart presents his message has an impact on my opinion. The use of diagrams to explain the concept of employee motivation has made me view the issue from a different angle. Motivation is intrinsic. Monetary rewards can hardly arouse or sustain motivation.
Affordable Care Act
Affordable Care Act (ACA) will make it difficult for companies to provide for the health care needs of the employees. The Act has led to increasing in health care cost for many businesses. Affordable Care Act has resulted in the introduction of additional costs like reinsurance fee. Moreover, the Act requires companies to provide health insurance to children. Hence, it has led to an increase in the number of people that the companies cover. Before the enactment of ACA, companies had set the maximum amount that every employee could spend on health care. However, the implementation of ACA led to the abolishment of such limitations. Today, companies are forced to provide medical cover to employees who suffer from chronic diseases. Some conditions are too expensive to treat, and this adds to the costs that businesses incur. Today, companies are required to provide insurance cover for all preventative and emergency services. This requirement has led to companies paying high premiums for a majority of the insurance plans they provide for the workers.