...Evaluating Reward Systems and their Impact on2 EVALUATING REWARD SYSTEMS AND THEIR IMPACT ON PERFORMANCE Name Affiliation Date ChemLab supplies international is a company linked with worldwide leaders in laboratory and glassware industrial manufacturing. The business is devoted in providing various products and services of high quality from international sources that are recognized worldwide. These sources are for instance like fine chemical, specialty chemical and other associated industries. ChemLab international has been serving the world since 1998, its location is in Pakistan and it stand for foreign manufacturers. I am the human resource assistant at ChemLab supplies international and the company has been experiencing low employee turnover and high rate of employee resignation. The productivity is subsequently low and profit margins are not met. Preliminary problem statement Can the reward system be effective in improving performance and productivity in ChemLab Supplies International? It is clearly evident that the company employees are most certainly demotivated and that is why they absent themselves from work and a large number of them quit their jobs. A system to motivate these employees should be implemented to curb this problem. The employees are always giving reasons not to come to work and within no time the employee who has been giving reasons submits their resignation letter. A research has been conducted to find out why the employees absent themselves...
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...RESEARCH IN BUSINESS A STUDY ON THE IMPACT OF REWARDS ON EMPLOYEE MOTIVATION IN THE TELECOMMUNICATION SECTOR OF PAKISTAN Farheen B. Zaidi 1, Zahra Abbas 2 JULY 2011 VOL 3, NO 3 Abstract A good reward system is necessary to motivate the employees of an organization. This study was conducted in order to investigate the impact of rewards on the motivational level of employees of telecommunication sector of Pakistan. The impact of three independent variables rewards, monetary rewards and non-monetary rewards on the dependent variable motivation was studied. Four dimensions of motivation, focus, determination, effort and satisfaction were considered for the development of theoretical framework. A total of 292 questionnaires were returned fully complete. The research study showed that there exists a strong positive relationship in rewards and motivation among the employees. It was concluded that monetary rewards have greater impact on motivation of employees than the non-monetary rewards. Significant differences in rewards offered to employees and motivation level were found in the analysis of comparison of means with respect to gender, age group, marital status, working duration in the organization and salary. Keywords— Focus, Determination, Monetary Rewards, Non-Monetary Rewards, Motivation, Rewards . INTRODUCTION "Motivation is the art of getting people to do what you want them to do because they want to do it." (Eisenhower) Rewards whether monetary or non-monetary can...
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...managers, budget analysts, media planners, market research, innovation, sponsorship, public relations, events coordination, etc * In this research-based paper, I will be focusing on the company’s reward system for employees and the relationship this has with motivation. Currently, the company’s award system for the marketing department is based on each brand’s trimester performance, and the awards are given to the brand managers. The awards consist of recognition and a cash prize. * According to the Organizational Culture Inventory, SABMiller’s primary culture style is self-actualizing which indicates that the company values creativity, encourages employees to develop their skills, improve themselves and enjoy their work. The secondary culture style is Achievement, which indicates that the company encourages employees to set and accomplish goals (see figure 1.1). Organizational Culture Inventory Circumplex Figure 1.1 B. PROBLEM STATEMENT * SABMiller’s high management is not practicing good leadership skills regarding teamwork, employee recognition, acknowledgment of accomplishments, and motivation. The reward system is lacking fairness regarding who gets rewarded and the merits on which it is based. This situation is having an impact on employee motivation and performance, given the fact that team members are responsible for outcomes, yet...
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...Being a relatively small company (in terms of head count and revenue turnover) compared to others in the group, ABC Technologies does not have a dedicated Human Resources Management (HRM) function, and was referring to the Group HRM for all employee matters, including resourcing, learning & development, performance management, and employee rewarding. Being employees in a consultant firm, majority of the consultants had needs that were different from the rest of the employees in the group. The nature of the work mandated the company not only to hire exceptional employees, but to retain them as well. The recruitment process attracted and hired very good consultants, who with time become less productive and efficient due to the way the company rewards them. Employees always complained about gaps between their needs and management offerings. They also felt that the effort they put into the job, especially with the continuous travelling and long working hours, was not “rewarded properly”. The management on the other hand always insisted that it does take an extra step towards employee satisfaction and motivation, yet the performance of the business was clearly impacted by lack of motivation. Throughout this paper I will discuss the Employee Reward at ABC Technologies. The issue around that will furtherly be elaborated in...
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...Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees By: A. Drake, J. Wong, & S. Salter Behavioral Research in Accounting, Volume 19, pp. 71-89 Renee Claussen Janet Page Kevin Sandmann Matt Schlemmer Micah Shornack Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees It has been proven that the motivation level of employees can make or break an organization. This motivation level can be increased by the feeling of empowerment, and when the motivation level increases, so does organizational performance. Empowerment, a psychological concept, is greatly influenced by one’s habits, values, and surroundings. A model of psychological empowerment was developed by Gretchen Spreitzer, Professor of Management and Organizations at University of Michigan, and it is based on a survey of mid-level managers. Her model explains that by providing employees with performance feedback and rewards, the feeling of psychological empowerment will increase. In contrast to this model, Drake, Wong, & Salter (2007) conduct an experiment which uses subjects representative of lower-level employees, rather than mid-level managers. They choose to focus on lower-level employees because little research has been published that investigates the ideas of empowerment within this group (Drake, Wong, & Salter, 2007). The lower-level employees are directly...
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...Effect of Employee Engagement In Reward Systems and Performance Management Introduction The success of any organization rests on the strategic management of its employees. It’s vital for an organization to attract, motivate and retain the best talent available to achieve and sustain a long-term competitive advantage. To achieve this the Human Resources Department must design a performance management system that not only links employee performance outcomes and expectations to its strategic goals, but also uses the system as a tool to improve employee productivity as well as recognizing employee accomplishments, all while emphasizing the employee’s role in the process. The challenging part is motivating the employee to increase and sustain productive behavior. An organization’s reward system can be used as a motivational tool if the rewards being offered are considered valuable by the employee. A valued reward system can positively affect an employee’s performance. Organizations use pay, benefits, compensation and other rewards as effective performance management instruments to enhance employee productivity so goals can be achieved. So, how does an organization choose the reward system it offers? This paper will focus on the hypothesis that employee engagement in choosing a valued reward system will positively effect performance management and subsequent employee success. Assessment An effective employee reward system is an integral part of the employer/employee relationship...
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...Exploring the effect of ethical leadership in the relationship of reward system and Job performance Masters of Business Administration (Human Resource Management) BY Ayesha Amjad MBA3Y02121027 Sadia Mazhar MBA3Y02121010 Supervisor Mr. Muhammad Waqas LAHORE BUSINESS SCHOOL THE UNIVERSITY OF LAHORE ACKNOWLEDGEMENTS In the name of Allah, the Most Gracious and the Most Merciful Alhamdulillah, all praises to Allah for the strengths and His blessing in completing this research paper. Special appreciation goes to our supervisor, Sir Muhammad Waqas, for his supervision and constant support. Her invaluable help of constructive comments and suggestions throughout the research paper work have contributed to the success of this research. I would like to express my gratitude to the Dean, Lahore School of Business Dr. Naheed Sultana and also to the Head of Department, Lahore School of Business, Dr. Atif Mahmood for their support and help towards our postgraduate affairs. Sincere thanks to all our friends Amaima Yawar, Anum Sarwar, and Numan Irfan. Thanks for the friendship and memories. Last but not least, our deepest gratitude goes to beloved parents of Ayesha Amjad; Muhammad Amjad Fraooq and Mrs. Shazia Amjad and also to my brother Usman Amjad and sister Fiza Amjad for their endless love, prayers and encouragement. We also pay gratitude to deceased parents of Saadia Mazhar, Hafiz Muhammad Mazhar and Arjumand Mazhar and her sisters Ayesha Omer, Farkhanda Nouman...
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...Designing a Reward System Kendra Silver HSM/220 December 15, 2013 Armida Molina Designing a Reward System A reward system offer employees incentive to effectively and efficiently perform on the job. Every company needs a strategic reward system for employees that address certain areas such as compensation, benefits, recognition and appreciation. This can help motivate employees in performing better and going above and beyond the minimum requirements. There are nine major factors that motivate employees to perform their job effectively. These nine factors are respect for me as a person, good pay, chance to turn out quality work, chance for promotion, opportunity to do interesting work, feeling my job is important, being told my boss when I do a good job, opportunity for self-development and improvement, and large amount of freedom on the job. When creating a reward system these factors should be considered. “The relationship among organizational structure, employee satisfaction and motivation can be explained jointly by the characteristics of the jobs and by the attributes of the individuals employed (Oldham and Hackman, 1981). Some other studies also support the notion that characteristics of the job have direct impact on the work outcomes (e.g., Champoux, 1991; Bhuian and Mengue, 2002; Thomas et al, 2004; and Garg and Rastogi, 2006). Loher et al. (1985) concluded that there is a significant relationship between job characteristics and job satisfaction. In a study...
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...IMPACT OF NON-MONETARY MOTIVATORS ON STAFF PERFORMANCE Positive impact According to the Merriam-Webster dictionary, motivation is one of the external and internal factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject or to make an effort attain a goal. Armstrong (2014), classifies motivation as strength and direction of behaviour and the factors that influence people to behave in certain ways. This section will illustrate the impact of non-monetary motivators on staff performance. Watson, (1994) admits that motivation is the number one problem that is facing modern business today. Non-monetary motivation is one of the most essential ways to motivate staff within an organisation. In many countries owners and top managers are using systems of motivation for staff. In the U.S.A. seventy five percent of organisations motivate staff with non-monetary motivators. This percentage reflects the importance and positive impact of motivation of employees.There are many types of non-monetary motivators and all of them have positive impacts on organisations. Douglas, E (2012) believes non-monetary awards may include: • Restaurant coupons • Relocation costs • Movie tickets • Recognition of birthdays • Free lunches, snacks, or beverages • Covered parking spaces • Outstanding employee plaques • Employee discounts • Tuition Reimbursement • Preferred office/classroom/team selection • Flex time • Job "swapping" ...
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...Introduction 2 1.1 Research question 2 1.2 Background 2 2.0 Motivation 2 2.1 Definition of Motivation 2 2.2 Theories of Motivation 3 3.0 Reward System in Organizations 3 4.0 Types of pay Scheme’s 4 4.1 Payment by Result 4 4.2 Skills-based pay 4 4.3 Profit sharing 4 4.4 Performance-related pay 5 5.0 Discussion 5 6.0 Empirical Study 6 6.1 Volvo Current Reward System 6 6.2 Employee and Mangers View of Reward system in Volvo 7 7.0 Empirical Study 2 7 8.0 Conclusion 7 9.0 References 8 10.0 Appendix Page 9 1.0 Introduction 1.1 Research question Today an organizations result is highly dependent on the employees work motivation. It therefore becomes important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right and adequate combination of immaterial and material rewards can boost up an employees work motivation and enhance their commitment to the company. The aim of this documentation is to investigate and analyze how well a reward system helps generate employee motivation. More specifically it aims, to conclude that a financial reward is not an effective implementation to increasing employee motivation 1.2 Background A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy, however, it might be challenging...
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...focus. An optimal solution will be identified along with an implementation plan with meaningful end-state goals that support the vision of the organization. Situation Analysis Issue and Opportunity Identification Riordan Manufacturing has developed various processes and procedures to manage the business. The organization maintains a heavy focus on research and development with a strong sales force to help distribute the various products. Manufacturing plants are situated in Pontiac, Michigan; Albany, Georgia; and Hangzhou, China with the corporate headquarters in San Jose, California. With rapid growth and expansion Riordan Manufacturing has begun to experience issues that will impact organizational goals and strategic plans. The key issues affecting the organization center on employee motivation, employee...
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...Rewards are positive outcomes that are earned as a result of an employee’s performance. Some researcher agreed that employees are motivated to achieve organizational goals if there are high rewards as an outcomes. Extrinsic motivation is based on tangible rewards. Unlike intrinsic motivation that is self-administered, extrinsic motivation is external to the individual and is typically offered by a supervisor or manager who holds all the power in relation to when extrinsic rewards are offered and in what amount. Extrinsic rewards are usually financial in nature, such as a raise in salary, a bonus for reaching some quota or paid time off. However, extrinsic rewards can also be as simple as getting the better office, verbal praise, public recognition or awards, promotions and additional responsibility. These material rewards can be motivating to employees because pay, time off, advancement and recognition are important to most workers. Just imagine how de-motivating it would be to underpaid, overworked and unappreciated, and you can quickly see how important extrinsic rewards are to organizational success. An extrinsically motivated person will work on a task that they do not particularly care for simply because of the anticipated satisfaction that will come from some extrinsic reward. For example, employee may not be interested in the product he is...
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...associate with reward and employee motivation and identify association between employee motivation and employee motivation variables for instance gender, age, education, and income level and job experience in banking in Pakistan. The study should be based on primary data and sample size, by use of questionnaires. The partners are, therefore, in case of a business opportunity should apply relevant entrepreneurial skills in order to succeed especially by following the following path. Two hypotheses were developed for the present study and were tested by using Chi-square Test and binary Regression Test. The result of Chi-square shows that P- value is 0.048 of Chi-square its mean there is an association between salary and gender. The correlation between rewards and Employee Motivation is 0.546, which shows the positive relationship between compensation and employee motivation Payment structure is a crucial element in a business plan and should be carefully be looked into for instance the partners should make sure that they recruit a reasonable number of workers that they are able to manage. Objectives of this study (i).To determine if there is an association between rewards and employee motivation, biographical factors (Gender, age, education, qualification, and Income level). (ii).To identify the types of reward system in Pakistani Banks. (iii).To determine the impacts of rewards system on Banks employees’ biographical variables. (iv) To suggest ways in which reward program in...
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...Is Intrinsic or Extrinsic Motivation Better? Motivation is a conceptual theory which used to explain and understand the reasons of individuals’ behaviors, actions and desires. Another explanation to motivation is that the psychological process that arouse and direct goal-directed behavior. From past to nowadays, motivation is a significant initiator in many incident. For instance, World War 1, World War 2, exploring new continent such as America, foundation of new companies, people’s life and etc. There need to be an initiator for incident to occur. Motivation is the first thing that comes to mind for the initiator role. There have been a lot of academic journals and researches about the effects and forms of motivation. Researches show that every human being has a different form and satisfaction level of motivation. In theory of Edward L. Deci and Richard M. Ryan which called the Self-determination theory focus to the choices that people make without any external influence and interference and the individual’s behavior whether is self-determined and self-motivated or happens with an external influence. This theory brings us to studies that happened in 1970’s which are the intrinsic and extrinsic motives. Intrinsic and Extrinsic motivations are the exactly the opposite of each other. “Intrinsic motivation occurs when we act without any obvious external rewards. We simply enjoy an activity or see it as an opportunity to explore, learn actualize our potentials.” (Coon, 2010)...
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...Rewards System Proposal Name: Felecia Simmons Professor John Muehl Total Rewards Date: February 12, 2012 Introduction Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry. Total Rewards Concept The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination...
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