Reward Management
Explain what is reward system. Describe the reward system of your organization or any organization you are acquainted with. How financial reward systems have been helping in improving organizational performance. Explain with examples.
Answer. The only way employees will fulfill your dream is to share in the dream. Reward systems are the mechanisms that make this happen. However, reward systems are much more than just bonus plans and stock options. While they often include both of these incentives, they can also include awards and other recognition, promotions, reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you.
Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. In fact, several studies have found that among employees surveyed, money was not the most important motivator.
Example: Reward System in my Company
The organisation is a national company which was formed in 1976 and has thirteen branches. The core business activities are the importation, sales, hire, and spare parts backup of various types materials handling and mobile equipment. In addition the company is also a national fleet management service provider. The company employs approximately 179 blue-collar workers of which 110 were in field service and the remaining 69 are workshop based, 57 sales and management staff, 64 administration staff, and 4 senior managers.
Reward System
Spotters Fee
The spotter's fee rewards the employee for providing leads from which a major overhaul (over Rs. 80000 revenue), equipment sale, or hire / service contract has been won. The reward offered is a taxable Rs. 4000 cash bonus paid via the payroll
Answer. The only way employees will fulfill your dream is to share in the dream. Reward systems are the mechanisms that make this happen. However, reward systems are much more than just bonus plans and stock options. While they often include both of these incentives, they can also include awards and other recognition, promotions, reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you.
Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. In fact, several studies have found that among employees surveyed, money was not the most important motivator.
Example: Reward System in my Company
The organisation is a national company which was formed in 1976 and has thirteen branches. The core business activities are the importation, sales, hire, and spare parts backup of various types materials handling and mobile equipment. In addition the company is also a national fleet management service provider. The company employs approximately 179 blue-collar workers of which 110 were in field service and the remaining 69 are workshop based, 57 sales and management staff, 64 administration staff, and 4 senior managers.
Reward System
Spotters Fee
The spotter's fee rewards the employee for providing leads from which a major overhaul (over Rs. 80000 revenue), equipment sale, or hire / service contract has been won. The reward offered is a taxable Rs. 4000 cash bonus paid via the payroll