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Coca-Cola

Coca-Cola

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Published by Monaaa
Reward manmagement at Coca-Cola Pakistan
Reward manmagement at Coca-Cola Pakistan

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Published by: Monaaa on Nov 18, 2008
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05/09/2014

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Reward Management
Reward management is concerned with the formulation and implementation of strategies and policies the purposes of which are to reward people fairly, equitably andconsistently in accordance with their value to the organization and to help theorganization to achieve its strategic goals. It deals with the design, implementation andmaintenance of reward systems (reward processes, practices and procedures) which aimto meet the needs of both the organization and its stakeholders.Reward is special payments for special work. Reward refers to all forms of financialreturns and tangible services and benefit employees receive as a part of an employmentrelationship.Fairness is important in reward allocation process and to retain good employees in theorganization manager must be concerned about fairness and appropriately reward thosewho deserve itOrganizations are interested in reward management for two important reasons. First, theabsolute cost of payments bearing on cost effectiveness depends on organizations toorganizations. Second affect, on employees work attitude and behavior, employee work effectively, to undertake training and accept additional responsibility (Bratton & Gold,1999, p. 191,192).According to our analysis, this author demonstrating reward, in a scenario to influenceemployees to work more with greater productivity as well as to reduce cost witheffectiveness. Reward can change the behavior of employees, if employee get the rewardhe will satisfy with his job and his behavior is good towards others employees. He will beloyal to the organization. If he cannot get the good reward with respect to his job his behavior may be change towards the employees and not loyal to the organization, so theworking condition of office is change this will effect to other employees well.
Objectives of Reward Management
There are three main objective of reward management in an organization to attract andretain competent employees. It encourages and attracts qualified and competentemployees to retain in the organization. Reward system is design and managed to1
 
improve productivity and control labor costs through motivation. Reward system shouldcomply with pay legislation (Bratton & Gold, 1999, p. 192).
Types of Rewards
Basically organizational reward is two types include intrinsic rewards and extrinsicrewards. Intrinsic rewards are internal to individual and are normally derive frominvolvement in certain activities or task it includes achievements, feelings of accomplishment, informal recognition, job satisfaction, personal growth and status.Extrinsic rewards are directly controlled and distributed by the organization and are moretangible than intrinsic rewards it includes formal recognition, incentives benefits, pay promotion social relationship and work environment (Byars & Rue, 2000, p. 272).As far as literature is concerned, organizations mostly used two types of rewards likewise Intrinsic (non monitory) and extrinsic (monitory). Intrinsic reward is depended tothe extrinsic one. Both play a vital role to motivate employees optimistically to increaseefficiency and effectiveness. One important aspect of rewards is that they are used tocontrol employees’ behavior to the extent to achieve organizations tasks as competentlyas they can. On account of rewards employees’ feels job security, and job satisfactionwith them. According to our analysis these are very important considerations to influence performance of employees as well.
Alternative to reward management
There are different alternatives to reward management like wise, pay for knowledgesystem, group incentive gain sharing plan, profit sharing, cost saving (Scanlon plan), andcafeteria style benefits. These all are used to help reward management strategies to makethem more gainful (Bratton & Gold, 1999, p. 212).
Criteria of reward management
A criterion is very important to maintain a strong base for any system to run it withoutambiguity and bottlenecks. Criteria for reward management give a fair idea aboutorganization internal culture, philosophy of organization, defines its mission, vision,values as well as its overall road to success.
Customer satisfaction
Work quality
Problem solving2
 
Work quantity
Setting and achieving objectives
Improving work processes
Attendances
Acquiring new skills (Deeprose, 2006, p. 36).
Relating rewards to performance
The free enterprise system is based on the premise that rewards should depend on performance. This performance reward relationship is desirable not only at theorganizational level or corporate level but also at the individual level. The underlyingtheory is that employees will be motivated when they believe such motivation will lead todesired rewards. Unfortunately, many formal rewards provided by organizations can not be connected to performance. Rewards in this category, including paid vacations,insurance plans, and paid holidays, are almost always determined by organizationalmembership and seniority rather than by performance. Other rewards, such as promotioncan and should be related to performance.The primary organizational variable used to reward employees and reinforce performanceis pay. But relating rewards to performance demands that performance be accuratelymeasured, and this is often not easily accomplished. It also requires discipline to actuallyrelate rewards to performance. Another reason is that many union contracts require thatcertain rewards be based on totally objective variables, such as seniority. While nosuccessful formula for implementing a pay for performance program has yet beendeveloped, a number of desirable preconditions have been identified and generallyaccepted:
Trust in management
Absence of performance constraints
Trained supervisors and managers
Good measurement systems
Ability to pay
Clear distinction among cost of living, seniority, and merit3

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