Management and Organization
As an organization it is very important for the human resources to control employees, motivate them and ensure productivity. Business owners are searching ways to reduce the costs and maximize quality so it is very important to get the most out of every employee. One way to do this is reward systems. In this paper we are going to analyze the reward system parameters and discuss about evaluation criteria.
According to Burack an incentive or reward may be used to motivate an individual or group. A reward can be anything that attracts the employee and make them work in joy. İncentive programs are mostly monetary but it may also include non-monetary rewards such as recognition, training, development and increased job responsibility. The French says that paying can be two ways:
1. Fixed Salary
2. Reward linked to performance. Payment is happening one period to another depending on quantity or quality of work. The worker are paid according to work completed or items produced. The most important thing about rewarding system is to seperate the ”salary” from ”reward”. So rewarding system is needed to ”pay off” employees their performance, and also they will enchance employee motivation in order to make the firm reach its goals. Also rewards improve consistency of services and reduces absences of the employee. Rewards make the firm a great and attractive place to work, making employees happier and well-trained. Having such employees will also attract customers, can you think of a better advertisement?
The Key Features
Reward plans include monetary and non monetary elements. This will be better to match the needs of the organization and employees. The goals that the reward system is serving to has to be identified. Planning the incentive to be accurate and on time will be the basis of very succesful rewarding in order to make better workplace and organization. As a manager the plans have to setted by communicating the employees and deciding what is the most appropiate reward. Providing monitoring systems such as feedback will lead to succesful and accurate incentive. Rather than the quantity, the quality of the work should be more important for the manager.
Designing Reward and Recognition
A very good example for recognition may be ”the employee of the month” frame at businesses. It is a psychological reward that seperates the employee from its peers by the work he/she has done. Also as we have said before rewards can be tangible. It is very important for the firm to do effective rewarding system so that none of the employees will feel bad or useless for the organization. There are some essential factors for the rewarding system: The rewards must be observable for all of the employees. So that everyone will be sure that the rewarding system is made fairly.
The reward system needs to have realistic standarts that make the employees satisfied. The rewarding plan has to be clear and standartized to make sure that all the members can calculate the reward they will get for a certain effort. The standards of the reward plan has to be set high but realistic, specific, satisfying and effective. Standard is a plan that should not be changed is no necessary situations because it is a contract between firm and the employee. The rewards should be given oftenly to encourage high performance.
Types of Rewards:
1. Monetary Rewards: Monetary reward is the large raise or bonus payment that company is willing to give to the employee in order to motivate the job performance and meeting certain objectives. These bonus payments may be quick-motivators for the company. Good payments, incentives will make employees challange themselves but setting too much requirements will make the reward ignored. Also profit sharing will lead the employees to contribute more to achieve the profit goals of the company. Stock options become popular in these recent years, this gives employees the right to buy limited number for a fixed price. This option is a long-term motivator for the organization. Some benefit package may be given to employee such as insurance, good retirement, company gifts, meals, entertainment, flexible working hours, housing etc.
2. Non-Monetary Rewards: Reputation and recognition is very important for a person to feel important and valued. The company should make it clear for the employees that good performance will be recognized. Some examples may be: writing employee thank note, bigger desk, gift cards, personalized coffee mugs, games room, gym, child care, impressive job title, own visiting cards, own secretary etc. Also some informal incentives may be leaving early or coming late etc. Individuals are interested in getting others attention and increasing reputation.
As Herzberg and Maslow states: The physiological and psychological needs and desires of employees must be met and maintained to keep them motivated. So it is important to satisfy the employees in order to keep getting tasks done and achieving goals. Both internal and external motivators need to be used to keep the employee happy and good performing.