The Application of Monetary Awards in Tourist Organizations: Rent-A-Car Sectors in Buenos Aires, Argentina

The Application of Monetary Awards in Tourist Organizations: Rent-A-Car Sectors in Buenos Aires, Argentina

Maximiliano E. Korstanje (University of Palermo, Argentina)
DOI: 10.4018/978-1-4666-9761-4.ch012
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Abstract

Over years, management and marketing has been influential and useful to organize the working condition in modern corporations in tourism fields. The classical literature suggests that motivated workers enhance their commitment respecting to the goal of corporation. In this process, the assistance of managers is vital to achieve the success. In doing so, the program of incentive (monetary awards) gives to workers a reason to internalize management decisions. This not only is not truth but also we have found in this case-study opposite evidence. The capital somehow, disorganizes the human relations and harmony in service organizations. Of course, outcomes of this review should not be extrapolated to other unit of analysis; this is valid only for this organization.
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Introduction

While specialized literature emphasizes on the needs of motivating workforce to improve the production, the present paper shows the pervasive nature of financial incentives in tourist-organizations. Our outcome evidences that the monetary awards not only trigger the pre-existing conflict but also reduce the confidence and loyalty within organizations. This research is a result of a much broader project of investigation concerning the negative effects of a monetary incentive program in one of the most well-known rent a car companies in Buenos Aires and Argentina. Ethnography was the primary source of research here. The real names of participants and interviewees were covered into anonymity because of ethical issues. Added value is a significant aspect of psychological motivation recommended by marketing and management literature. This was the reason why one day the studied corporation contracted to a consulting advisor. One of the first tips was the implementation of a program based on monetary incentive for workers and employees. This program not only conferred a payment for workers in basis of their production but applied punishments based on the error or misconducts. The final outcome to be paid is transformed in argentine pesos. Although, the production increased, the conflict within workforce and top management obscured the labor Enviroment.

The history of management reveals that the relationships between workers and capital owners were determined by the conditions of production, which varies from time to time. Originally, the policies to foster production were based on paternalist viewpoints, but with the passing of time, it set the pace to more measure-stricken philosophies. Therefore, it is safe to say the concept of resource management surfaced from the rational needs of organizing works in a stage of centralized production. Whatever the case may be, from harder to softer models, from individual to collective work, the labor policies were implemented by top-management taking seriously the sense of authority (Davis 2006). This begs a more than interesting point of entry for this essay review, is postmodernity effacing the classical notion of authority, by which conflict arises?.

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