1.

Introduction
When working in organisations, both individual-based as well as team-based performance
matters when achieving the goals of that particular organisation. No matter how smart the
strategies of the organisation are set, if the individuals are not organised and not ready to accept
the challenges and contribute to the organisation, the performance will fall down and end up
with a failure. To avoid these repercussions human resources of organisations need to be
managed in such a way, so that each and every individual will have the opportunity to
contribute to the organisational success either as individuals or as groups. In this particular
assignment, opposing arguments are developed for the statement that “Team-based
performance rewards are better than Individual-based performance rewards”. Based on
literature and practical evidence, the arguments are strengthened in order to bring new insights
to this particular matter.

2. A Conceptual Overview

In most of the studies that have been conducted in relation to organizational performance
rewards, variety of strategies have been considered. Given the context, in different situations
Individual-based performance rewarding strategies are continuously compared with the Team-
based performance rewarding strategies. Based on the extent to which how people react to
these reward strategies the success or failure of the strategy will depend.

Nowadays most of the companies are trying to identify lucrative and attractive compensation
strategies by creatively linking those strategies to performance of employees in order to
motivate employees and thereby to improve the performance of the organisation. These
rewards may include not only the material rewards such as salary increments and bonuses but
also non material rewards such as verbal appreciation which will have significant impact on
the performance level of employees (Allen and Helms, 2001).

1
Figure 1: Influence of Rewards towards Organisational Performance

Source: Allen, R. S., & Helms, M. M. (2001). Reward practices and organizational
performance. Compensation & Benefits Review, 33(4), 75.

Early scholars who researched in this area have identifies several factors such as “Preference
for type of incentive strategy, Differential effects of aggregate incentives and Moderating
effects of individual predispositions” when determining the effectiveness of different reward
strategies.

Quite interestingly Hofstede’s model of national culture has been relied upon in developing
arguments regarding in relation to international reward management. When it comes to cross-
cultural reward management this theory has been widely discussed. In the light of Hofstede’s
model of national culture it is argued that based on the culture of different nations the citizens
of those nations may have different values, attitudes and believes which may influence their
behavior even within organisations. Yet, at the same time there are arguments and criticisms
for the applicability of this model in different contexts. As per Triandis (1982), “Hofstede’s
dimensions are considered as too narrow and confined only to the study of work-related values,
which are not the same as national values”.

In a study conducted by Chiang (2005), it was revealed that cultural elements have an influence
on the reward preferences. However according to the findings, it was demonstrated that not
only the cultural factors but also the other contextual factors such as economic conditions also
may have a strong influence on the rewards preferences of the employees.

As depicted in Figure 2, both extrinsic as well as intrinsic rewards can be utilized to recognize
both individual as well as team based performance in organisations.

2
Figure 2: Types of Reward/Recognition Tools

Source: Cacioppe, R. (1999). Using team–individual reward and recognition strategies to drive
organizational success. Leadership & Organization Development Journal, 20(6), 327.

As it could be observed in the business organisations, performance rewards are more oriented
towards individual-based performance rather than team-based performance. Based on this brief
conceptual overview, the rest of the assignment will focus on three main arguments which
would oppose the statement which highlights that “Team-based performance rewards are better
than Individual-based performance rewards”.

3
Argument 1 – Individual-based performance rewards are better as it would promote and
encourage independent thinking.

Even though an organisation is commonly defines as a group of people working together to

achieve a common goal, each and every individual plays a major role within this group in
achieving organizational success. In this process, individual-based rewards and personal
recognition were continuously relied upon and acknowledged by most of the organisations and
managers in order to motivate employees. As an example “Employee of the month schemes,
profit sharing, and monetary payment for higher productivity or commission on sales revenue”
were continuously used as means of rewarding individual performance within organisations
(Cacioppe, 1999, p.322).

When rewards are linked to individual performance,

 Employees would be more focused on thinking independently and contribute to the

organisation without depending on others thinking.
 It would boost the confidence level of the employees while paving the way for each
and every employee to distinguish their performance from others, based on their own
capacities and capabilities.
 With the promoted independent momentum, the employees would proactively and
progressively contribute to the activities of the organisation.
 The organisation would be easily direct the behaviours and performance of the
individuals towards the goals and objectives of the organisation.

As the ultimate result, through individual-based performance rewards the organisations would
be able to promote independent thinking of the employees and thereby obtain the maximum
output from the employees by directing them towards achieving what the organisations
ultimately need to achieve.

4
Argument 2 – Individual-based performance rewards are better as it would create more
control over performance and assign responsibility.

When working in groups there is a high tendency for social loafing. According to Comer, in
social loafing, “the social loafer, like the free rider, profits from the work of other group
members without working up to his or her full potential (1995, p. 649).” The following model
depicts how feedback obtained under real work conditions can have influence the perception
of the group members and subsequently the loafing tendencies (Comer, 1995, p. 660).

Figure 3: Loafing in work Groups

Source: Comer, D. R. (1995). A model of social loafing in real work groups. Human Relations, 48(6),
p. 660.

5
As depicted in the above model, social loafing can be considered as a reason for reduced work
performance when working as teams or groups. In such occasions, team-based performance
rewards may not effective enough in boosting organizational performance. In such
circumstances

 People will not take direct responsibilities of their work

 Due to that it would be difficult for the managers to have control over the work that
employees do.

Given the context, in such occasions individual-based performance rewards will be effective,
because when rewards are linked to individual-based performance

 The responsibility of the allocated taken will be taken by the respective employee
 Due to that the managers will have the necessary control over the activities that
employees do.

Argument 3 – Individual-based performance rewards are better as it would stimulate

creative and innovative thinking.

When rewards are linked to individual performance naturally employees will try to
differentiate themselves from others. In that process employees individually strive to do
creative and innovative things through which their contribution will be highlighted. Thus, in
that way Individual-based performance rewards will lead to creative and innovative thinking.

According to the research findings of Allen and Helms (2001), Individual-based performance
rewards would support the activities of employees toward things that they can control directly.
Further, even though Individual-based performance rewards may have a significant time lag,
when continuously and regularly the employees are provided with timely rewards, it will create
a reflective influence on the behavior of employees.

6
In this way, when the employees are provided with adequate rewards with timely feedbacks,

 They would be motivated to do creative and innovative things within organisations.

 Moreover, this will boost the individual recognition of the employees within
organisations.
 This condition will also create and promote self-discipline of the employess aprt from
the rules and regulations of the organisation.

Conclusion

Both individual-based as well as team-based performance are important for an organisation to

achieve its targets. However, due to the inherent weaknesses of team-based performances in
some occasions, people may think that individual-based performance rewards are better than
team-based performance rewards. Throughout the assignment, opposing arguments were
developed for the statement that “Team-based performance rewards are better than Individual-
based performance rewards” based on literature and practical evidences.

Based on the arguments developed in the assignment it can be concluded that based on the
context, the above statement may go wrong and you would feel that “Team-based performance
rewards are not always better than Individual-based performance rewards”.

7
References

Allen, R. S., & Helms, M. M. (2001). Reward practices and organizational

performance. Compensation & Benefits Review, 33(4), 75.

Cacioppe, R. (1999). Using team–individual reward and recognition strategies to drive

organizational success. Leadership & Organization Development Journal, 20(6), 322-
331.

Chiang, F. (2005). A critical examination of Hofstede's thesis and its application to

international reward management. The International Journal of Human Resource
Management, 16(9), 1545-1563.

Comer, D. R. (1995). A model of social loafing in real work groups. Human Relations, 48(6),
647-667.

Triandis, H.C. (1982) ‘Review of Culture’s Consequence: International Differences in Work-

Related Values’, Human Organization, 41, 86–90.