REWARD MANAGEMENT

Presented by Praveen t v 2nd sem mba

What is a reward?
A reward can be anything that the worker¶s attention and stimulates him to work Reward could be two types 1. Primary rewards 2. Secondary rewards

Reward have 5 aspects Value of rewards Amount of rewards Timing of rewards Likelihood of rewards Their fairness .

Features of a reward system An incentive plan may consist of both monetary and non. accuracy and frequency of incentives are the very basis of successful incentive plan .monetary elements. Mixed elements can provide the diversity needed to match the needs of individual employees The timing.

Contii«. provide feedback and encourage redirection . The plan requires that it should be properly communicated to the employees to encourage individual performances.

Determinants of rewards Most organizations believe that the reward system is designed to pay off or merit. Some define merit as being deserving. The problem is that the definitions of merit are often debatable. while to others. merit is being excellent .

we concede how unsatisfactory our efforts have been at trying to measure performance .Contii«. Deserving rewards may take into consideration such factors as intelligence. effort or seniority If excellence is performance.

performance Performance is the output. The issue with performance is differentiating between quality and quantity . To reward people in the organization agreed-upon criterion for defining performance.

rewarding of efforts may be the only criterion to differentiate rewards on the assumption that those who try.effort In organizations the performance is generally of a low calibre. should be encouraged The employee who can show his effort. . will stand to be rewarded more than sincere counterparts. without really putting one.

. and while they do not play in important role in business organizations. Seniority represents an easily quantifiable criterion which can be substituted for performance.seniority Seniority dominates most government organizations in the world. there are evidences that length of time on the job is a major factor in determining the allocation of rewards.

those individuals who possess the highest skills or talents will be rewarded commensurately. . Skills become a major element in the reward package. The requirement that an individual needs a university degree in order to attain certain within the organization is utilizing skills as a determinant of rewards In a competitive market.Skills held Regardless of whether the skills are used.

May be viewed as less deserving in reward than those that are more complex and sophisticated.Job difficulty The complexity of the job can be a criterion by which rewards can be distributed Those jobs that are highly repetitive and can be learnt more quickly . .

There is no room for decision making by the incumbent.Discretionary time The greater is the discretion called for on a job. the greater is the impact of mistakes and need for good judgment. As discretionary time increases. . greater judgmental abilities are needed and rewards must commensurately be expanded. there is a little discretionary time.

Non-monetary rewards Treats Knick-knacks Awards Environment Social acknowledgement Tokens On-the-job rewards .

Treats Free lunches Festival bashed Coffee breaks Picnics Dinner with the boss Birthday treats .

Knick-knacks Decoratives Company watches Tie-pins Brooches Diaries Calendars Wallets T.shirts .

Awards Trophies Plaques Certificates Scrolls Letters of appreciation .

Environment Renovation Music Flexible hours E.mail .

Social acknowledgement Informal recognition Recognition at office get-togethers Friendly greetings Solicitation of service/suggestion Membership of clubs Company facilities of personal projects .

Tokens Movie tickets Vacation trips Coupons redeemable at stores Early time-offs Anniversary/birthday presents .

On the job rewards More responsibility Job rotation Special assignments Training Representing the company at public fora .

Merits of non-monetary rewards Motivates employees to perform better Costs the organization next to nothing Builds tremendous self-esteem among employees Makes employees more loyal to the company Creates an atmosphere where change is not resented .

.Demerits of non-monetary rewards Demotivates people if processes are not transparent Could result in unhealthy competition among employees May lead to shortsighted. and hasty decision making Work intrudes on the family life of employees Will never work if monetary rewards are inadequate.

problem solving and innovation. Teams are today setting new standards in productivity.Rewarding teams Cross-functional teams are becoming a dominant feature of every organization.. They are taking organizations to newer heights .

How to reward teams Set quantifiable targets while evaluating team performances for rewards Ensure that top performance in each team earns the highest level of rewards Link team performance closely to the company¶s profits and overall financial health .

Contii« Avoid subjectivity while assessing both the teams and the individual performances Offer uniform non-tam based increments to employees within each grade .

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