Improving Reward System at Vid Public Bank

TABLE OF CONTENT

ACKNOWLEDGEMENT 3
ABBRIVIATIONS 4
LIST OF FIGURES 5
LIST OF TABLES 6
EXECUTIVE SUMMARY 7 1.1. Rationale 9 1.2. Research Objectives 10 1.3. Research Questions 10 1.4. Research Scope 10 1.5. Theoretical Background 10 1.6. Research methodology 11 1.7. Structure of thesis 12
CHAPTER 2: THEORETICAL BACKGROUND ON REWARD SYSTEM 13 2.1. The concept of reward system 13 2.2. The supporting components 14 2.2.1. Business Strategy 14 2.2.2. Reward strategy 14 2.3. The elements of reward system 16 2.3.1. Financial Reward 16 2.3.1.1. Base Pay 16 2.3.1.2. Variable Pay 17 2.3.1.3. Employee benefits 20 2.3.2. Non financial reward 22 2.4. The aims of reward system 28 2.5. Factors to assess the reward system 29
CHAPTER 3: CURRENT REWARD SYSTEM AT VID PUBLIC BANK 30 3.1. Overview of VID Public Bank 30 3.1.1. History 30 3.1.2. Corporate Philosophy 32 3.1.3. VPB business results 32 3.2. The current reward system at VID Public Bank 33 3.2.1. Financial reward 33 3.2.1.1. Base salary 33 3.2.1.2. Variable pay 33 3.2.1.3. Benefits 35 3.2.2. Non financial reward 40 3.2.2.2. Promotion Policy 40 3.2.2.3. Training 41 3.3. Findings on the VID Public Bank reward system 42 3.3.1. Findings on financial reward 42 3.3.1.1. Base pay 42 3.3.1.2. Variable pay 44 3.3.1.3. Benefits 46 3.3.2. Findings on non financial reward 47 3.3.2.1. Recognition 47 3.3.2.2. Growth and development 48 3.3.2.3. Work itself 49 3.3.2.4. Supervision 50 3.3.2.5. Interpersonal Relations 51 3.3.3. Summary of strengths and weaknesses of VPB reward system 51 3.3.3.1. Strengths 51 3.3.3.2. Weaknesses and causes of weaknesses 52
CHAPTER 4: RECOMMENDATIONS FOR IMPROVEMENTS 55 4.1. Business Target for 2010 - 2011 55 4.2. Recommendation to improve VPB reward system 55