Reward System Staff
Human Resource Management
How can organisations use reward systems to improve the performance of their staff
Reward system consists of an organisation's integrated policies, processes and practices for rewarding its employees in accordance with their contribution, skill and competence and their market worth.
Reward system can also identify as; Procedures, rules, and standards associated with allocation of benefits and compensation to employees.
There are many aspects of how organisations can use reward systems to improve their staff performance. There are factors that contribute of how staff can improve their performance, these are work flexibility, monthly appraisals, set targets, E- learning and non financial rewards.
Organisation would need to recognise that pay incentives and rewards are also communication and motivation devices. Any organisation can clarify by using rewards to give messages out to staff to notify them what's important. Organisation would need to consider in great deal how they will influence staff to perform and how they would be rewarded by the exception of managers.
If a manager in the organisation wants staff to work together in teams, they must set performance goals and rewards. Rewards can be based on individual behaviours and performance or can be given to the whole team and equally divided amongst the individuals based on team performance.
By group of staff working in a team, an organisation can improve the performance of the staff by using rewards system. The organisation can call a meeting and say to the staff that if you can sell 20 cameras each month then they will get extra pay by completing this task. The ways that the organisation can do this is support the team and encourage them they can get this task completed. With the organisation doing this the staff would be motivated and also knowing that the belief the organisation has in them to accomplish the task.
But in many ways there are problems as such organisation promising that they will be paid if the task is accomplished. The quote below shows the kind of problems that can occur in an organisation that would not improve the performance of the staff.
An example is; In a study, Hay management consultant found less than 50 per cent of middle level managers, 30 per cent of professional/ technical workers and 20 per cent of hourly workers feel that their pay is linked to their performance. These percentages have decreased by about 5 per cent or more since 1994 for middle management and hourly workers. (Gross 1995). Gross has suggested that the staff are reporting back that lack of team pay is causing the team to fail to approach with the targets that have been set.
The information above has shown that organisation needs to take a hostile approach to teams. Organisation business strategy and goals need to be supported by team culture, the team roles, and key competencies and reward systems.
The model below shows how compentices and behaviours are required to achieve the team and organisational goals. Model is showing that it helps to motivate the team members to achieve the goals and also enable them to reinforce the key roles and behaviours that are needed to be a successful team. (Robbins etal, 1994)
. By summarising model it shows how an organisation works together to meet their goals as to improving the performance of staff. It shows that discipline is required to create successful team. Elements of team work would need to be structured into all aspects of the group and its meetings. It suggests that reward and recognition systems are one of the most important ways to advance positive interdependence and personal accountability.
Information above has explained how team can be effective to improve their performance. There are many other ways how team can improve the performance by using reward system.
At a major retail clothing company, teams are provide with one time cash awards when management believes the team has done an exceptional job in developing products or marketing strategies, among other types of performance, (Goeber 1995) However this states the organisation would evaluate the outcome of the team, as how it performed such as customer satisfaction and suggests it determines whether a specific team should be provided with incentives.
Instead, when the organisation feels a team has done an outstanding job, the team is provided with a monetary or nonmoetary reward. (Kanin- Lovers, 1993) This suggests that unlike goal based system, the team is not provided with a predetermined performance standard which would guarantee the receipts of specific predetermined reward.
The advantages as organisation of not notifying the staff are if they don't get an award they will be able to identify what went wrong. They will be to see how to improve as the team who has won the cash award. For some teams of not winning will have sense for them to be motivated for next time as to when the prize and knowingly in the group having confident they can win the price. It would show where the performance can be improved and also motivated that they can be better than the rivals.
The only problems that can occur in a organisation if for example: if the same team was winning the award and other groups of team weren't wining the award, this would have a major impact such as decreasing in the teams motivation to perform well. The team would think they wouldn't be able to win the award.
Overall the information about teams is that teams don't necessarily work together as a group, also getting into many conflicts in the group. This has impact as the team would not always proceed clearly from one stage to another. Reward systems and recognition can be used to manage and focus the team in each of these stages.
Other reward systems that can be used are appraisals, career development, and goal setting target. The way organisation can award a individual staff by using the objective of setting a target they will need to meet. An example: If you keeping excellent service to the customers and providing the services as what is required you would give an award such a holiday away for 4 weeks where ever you want to go as the company will pay for it.
By using this type of system this can improve the performance of the staff member as they might think that would lovely time off work for once. Staff member can be motivated by thinking they can go an extra mile knowing they can do better and also can sure other people in the organisation how well the staff member is performing. Important factor if the member of staff achieves the objectives set may other staff organisation might realise I could have done that and it wasn't hard I was just being lazy. For the next time the member of staff will be ready to compete. Important factor is that the staff member might want to prove to the organisation how valuable they are for the company with meeting aim and objectives ser.
Organisation will need to take into consideration that they should be fair as notifying all member of staff that they is an award that would be distributed to meet the aims of objectives. The only problems if all the staff members meet the objectives the company will have problems they won't be able to afford to send every staff member on holiday. So the organisations would need a strategy of rewarding in different ways such as given the best 10 people prices as meeting to the criteria set.
Case study example of ASDA were having a problems such as they weren't making profit and also to having many customers coming to the store. What ASDA decided to do was develop a comprehensive reward and recognition scheme. Designed to motivate the workforce and focus them on the customer, the programme had various element. (Macaulay2001). ASDA are suggesting that something needs to be done for the whole organisation to improve their performance and also attempting to save their jobs as well. ASDA then implied an ABCD scheme which was based on customer and manger nomination. By doing this it was successful for ASDA as they have performed to get staff member to improve their performance rather than before as not helping customers much out.
Important factor was that ASDA had considered looking at the four factors that were mentioned by Coil that were important in organisation as to improve staff performance.)
These are Stages of team cycle, reward, and recognition categories, type of team, public, private or not for profit sector, culture of the team organisation, (coli 1997)
ASDA had reported that developments were made and they were success of using this type of programme as it had a significant factor in the success of the whole of the organisation which had changed strategy. This helped is was able to generate greater openness to customers and good understanding of each member of the whole organisation.
ASDA had also looked at Cacoppe suggestions saying that organisation need to have informal and formal rewards that provide feedback an encouragement given to the employees. However Cacoppe is saying that if a organisation doesn't concentrate on staff member who perform poorly as they would be many consequence to deal with. Such as organisation ignoring poor performance can lead the staff member to be morale low. It is very important that organisation give so sought of insight as to have the word with the member and encouraging them you can do this don't say you cant.
Organisations should not reward poor performance as this would devalue the recognition of those who have performed well.
Other ways reward system can be used as in format of appraisals. There are many problems suing appraisals. Many organisations used appraisals different rather the motivating them perform they demotivate staff as making them fell and bad and also the moral of them reduces. By doing this the staff member would problem thing they are not valued at the organisation and may think I should work how I fell like and not be told by anyone what to do.
Appraisals are also useful for many organisations to use that encourages for staff to perform better in the organisation. Driver and Coombs make specific linkages between operational HR appraisals and reward systems, organizational strategy and structure, and the career aspects and motivations of co workers, manger and executives. (Larsson etal 2003) This suggests that how appraisals can be used to motivate individual staff members and linking to tactics that organisation will have to get them to perform better. Such as identifying to the person have a career move to go into manger.
Organisation can say to the member of staff that if they meet the aims and objectives they will able to become the manager. The way the organisation would do this is by telling them what the strengths are of them and the weakness. But encouraging them that the weakness can be improved and they will get all the help that is needed by the organisation. This is would encourage to improve the performance of the staff member as they would know that they can achieve something that was unexpected that would really good for them. The support and encouraging the staff ember will have will have enormous effect on the employee to be motivated to get the task completed and also how the different can qualities they have with continuous improvement of they performance.
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