Notify me of new comments via email. Notify me of new posts via email. Blog at WordPress. Different Types of Rewards Rewards can be divided into four categories: Transactional, relational, individual and communal. Reference: Armstrong, M. Share this: Twitter Facebook.
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Permalink , Reply. Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in:. Email required Address never made public. Name required. Follow Following. Sign me up. Already have a WordPress. Rewards may or may not enhance the employees financial well being. If they do they can do this directly through wages, bonuses, profit sharing, and the like, or indirectly through supportive benefits such as pension plans, paid vacations, paid sick leaves and purchase discounts.
Direct payment consists of salary, wages, commissions, incentives, bonus, allowances etc. Indirect payment includes pensions, medical insurance, paid leaves, paid sick leaves, purchases, discounts etc.
Non-financial rewards are potentially at the disposal of the organization. However, such rewards provide more job satisfaction. Preferred lunch hours, preferred office furnishing, parking spaces, impressive job title, desired work assignments, business cards, own secretary etc.
The reward depends upon the performance of an individual in the actual work floor. Performance-based rewards are exemplified by the use of commission, piecework pay plans, incentive systems, group bonuses, or other forms of merit pay plans. These rewards are exemplified by the use of commissions, piecework pay plans, incentive systems, group bonuses, or other forms of merit pay plans.
Membership based rewards are those rewards that are paid on the basis of being a member of an organization. In addition, some of the jobs in facility management companies may be simple and routine and therefore may lack motivational style. The facility manager may try to decrease such absenteeism by combining certain rewards to attendance. For example, the manager may set a policy of giving a monetary bonus or extra days of paid leave for an ideal or near-perfect attendance.
Porter and Lawler suggest that the combining between performance and reward that is intrinsic and extrinsic rewards is a strong factor encouraging performance Chella-durai , Some directly provide the employee with hard cash. Bonuses based on productivity against budget, quality or other benchmarks may be used as instant financial incentives. Management rewards by bonuses have become admired in some companies as a mode of offering employees with an instant buster for completion of an activity.
Mainly companies exercise financial compensation plan to encourage their employees like Sales challenge are short-term incentive plans that can be an effective encouragement device if they are carefully and precisely calculated. A sales challenge should have an exact purpose, such as to growth in sales in short-term sales of slow moving products or getting new customers. The plan of the sales challenge should take into thought the following points-each salesperson has an equal opportunity to earn, use sales quotas and select either open ended in which unlimited number of salespersons can earn.
Additionally to the above, closed ended challenge could be use in which there are limited number of salespersons winning the contest.
Reward should be lucrative, each constitutes of cash prizes. At least 10 percent of the budget should be spent on sale contest, so there is an enthusiasm in the company. Precision should be taken in order that employees do not use unwanted means such as using pressure strategy to accomplish their targets. In order to reduce the unwanted method is not to announce the contest period in advance. However, personal management skills still have a significant role to play in arranging their own motivating skills to acquire individual within their organization to give their best accomplishment by to making good use of the motivational systems and processes provided by the company.
Acknowledgment is gratitude of accomplishment by the organization of an act done by the team or team member. Acknowledgment has two essential goals to motivate the employees or team to replicate or maintain the behavior and to motivate others employees to do the same. Most team acknowledgement tactics fall over into celebrating organizational objectives usually as an event, intended to recognize the successful completion of crucial company goals.
This is to produce a superior consciousness or to prompt people of the value of the goals accomplished within the company. For example, a division of large telecommunications company held an all hands meeting at an off-site facility to rejoice the achievement of their goals.
Acknowledgment either informal or formal has been the most lucrative way to reinforce necessary actions for productivity within an organization. Feedback in specific positive disapproval is essential for the expansion and development of the employee. Negative fortification such as demonstrating mistakes and intimidating employees with job loss, causes employees to regulate their behavior just sufficient to shun punishment. It may get to make a positive consequence at the job but it will not produce eagerness.
Positive feedback encourages the employees to perform as a team. Using cross-sectional survey data, two studies found that self-reported use of manufacturing measures by managers had a positive impact on professed supposed implementation in some built-up settings but not in others Ittner and Larcker Abernethy and Lillis A comparable revise found no such confirmation Perera et al.
This is a TQM study using the rewards as compensations where it has been examined that there has no study been made till now that information the use of non-financial compensations that includes promotions, appreciations, and different incentives. The findings of this paper illustrate that the mainly workforce were frustrated with the motivation plan Most of the respondents were also not content with the safety benchmark of the organizations.
From research study it investigate that incentive plans are a good way of lead to implementation and loyalty for employee. Employees of services sectors that studied for research show a strong willingness of launching incentive plans for the high performance. Baron, R. Behavior in Organizations. Bowen, R. Recognizing and Rewarding Employees.
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How deficiency in management contributes to the United States' competiveness problem and what can be done about it?. Human Resource Management, pp. Deckers, L.
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