Tuesday, April 2, 2019
Rewards Management Incentives For Employees
Rewards Management Incentives For EmployeesReward management is whereby make-ups distribute unlike types of incentive to employees both in the form of direct and indirect m mavintary and non-pecuniary rewards according to their contribution (Armstrong 1999). It is likewise an essential part of encouraging employees to field of studyplace as you indispensability, so that those goals be met. The goal of the reward management is to meliorate the overall disposals output and transaction by developing a administration aimed at rewarding employees of the ecesis based on their contribution to the scheme (Armstrong Murlis 2007). In doing so, the employees leave behind flavor that they belong part of the organisation as their works ar being recognised by their superiors. This go away at the same time, create a sense of belonging and improve employees homage to the organisation.What are the exact roles played by the reward management in the organisations? Firstly, it allows the organisations to attract and retain suitable employees by paying the employees based on their excellent proceeding and ensuring direct and indirect rewards thus implying the brass recognises and measure manpower. Therefore organisations are able to control weary costs so they can remain aggressive in the competitive market. Secondly, rewards improve employees work performance and keep them motivated. As all organisations want to improve productiveness and enhance advance, good reward management corpses which buy the farm to a much committed workforce will reliablely play an alpha role. In addition, by having an effective rewards brass, it will motivate employees to showcase their skills and abilities to obtain effective performance. Lastly, comply with employment legislation and regulations as employment laws changes occasionally in the UK and European Union hence the need make some adjustment (Bratton Gold 1999).What kinds of deferred payment and rewards do empl oyees want some (Nelson 2003)? Nelson (2003) stated that employees value managerial support and involvement in organisation future projects. world part of decision making, support them when they made mistakes and giving them trust and countenance in doing their personal line of credit. There are divers(prenominal) types of praise employees wants, mainly in-person praise, written praise, public praise and electronic praise.In this essay, I will mention about how rewards are seen as a powerful stopcocks for impetuous cultural change in organisation in capital of capital of capital of Singapore victimisation Singapore Airlines, as an example, to show how rewards can drive cultural change. I will similarly mention whether rewards play a role in managing cultural and change in firm run internationally with special example from Pakistan. Also, some negative impacts of the reward schema will in like manner be discussed.Rewards organisation in SingaporeDuring the 1960s-1980s, incentives much(prenominal) as rewards, benefits and wisdom are non highly practice in the labour force. As the people then were poorly educated and the lack of family plan resulted in a large family, the heads of the family (mainly the fathers) most of the time do non obtain much bargaining power as they stick only one think in mind, that is to support their family member at all cost. In point to feed their, they have to do whatever the comp some(prenominal) want them to and they would take on any affairs that were available to them. They did not expect any bonus and incentives from the company and they were easily well-provided as long as they can support their family.However as the government shift from labour intensive assiduity to k instantaneouslyledge base industry people are nameting more highly educated than before, (people no monthlong discover at A or Diploma) more people will conform to higher education such degree. They no longer have the event to suppo rt the family, like what their parents used to experience thus they no longer have the sense of loyalty and have more tendency to air hop whenever better opportunity comes about. They will tend to be meddling about the military control they work in, choose jobs that they fancy or a better organisation who can give them higher benefits. Therefore organisations now have to come up with effective reward and recognition purpose to attract employees. It is proven that highly motivated employees will come up with high quality performance and by rewarding them it will also genius to employee job cheer.Singapore Airlines (SIA) is one organisation in Singapore who promotes motivating their staffs through rewards and recognition. Singapore Airlines adopt a series of rewards and recognition which include interesting and varied job content, symbolic forms of recognition and performance-based administer options (Heracleous, Wirtz Pangarkar 2006). Recently SIA introduced a new benefit sch eme rewarding their gangs monetary whereby the company associated many types of variable components to the organisation pecuniary performance such as salary according to the individual employee contribution to the organisation and profit sharing incentive (Wirtz, Heracleous Pangarkar 2008). A non-monetary form of motive and recognition which the organisation came up with is by awarding the best crew with best cabin crew service award. By obtaining this award, it will boost the morale of the crew thus stimulate them to work harder. Another form of recognising service virtue is by communication. The annual Deputy Chairmans Award, Mr Sim stress the importance of recognition, We know that a pat on the back, a good ceremony, photographs and write-ups in the newsletters can be more motivating than mere financial rewards, hence we put in a lot of effort to ensure that heroes and heroines are recognised for their lading and dedication (Heracleous, Wirtz Pangarkar 2006 p.165.) With suc h attractive reward scheme, the crew are highly motivated hence producing high quality service. All these factors helped SIA to build and declare truth service consistently for over few decades at that placefore Singapore Airlines was being crowned one of the best airlines in the world.Reward system in ParkistanPakistan is developing into one of the more developed country in the world therefore in order to be kept up to date, the working environment is becoming more and more competitive. Organisation productiveness is dependent on the employees hence employees request for extra training, skills and attractive package such as incentives, working conditions, recognitions and fringe benefits (Warsi, Fatima Sahibzada 2009). In e very(prenominal) organisation, the performance of employees plays a crucial role in the organisation accomplishment. The success of an organisation is how an organisation keeps its employees motivated and shows how they value their employees. Nowadays peopl e do not want to stay or work in an organisation for long, they will see there is any better opportunity outside and get better job prospect for that reason the family between organisation commitment and rewards and recognitions plays a crucial role in retaining good employees.In the recent year, many organisations hope that, through different types of incentive and performance recognition, to improve employee commitment and their performance in the organisation as rewards are being identified as the most of the essence(p) tool in recognising their contribution and performance (Danish Usman 2010). Rewards are deemed as a motifal tool for employees today as it able to motivate them thus change magnitude job performance and satisfaction. By motivating employees organisations can also increase their productiveness by giving them recognition which will eventually lead to increasing organisation performance. There are many types of incentive, in the form of financial rewards (improv ed pay and performance bonuses), promotions and incentives (parental leave for sick children and family day) that satisfy employee to a certain design. It has also been showed that rewards are required to ensure committed employees feel comprehended and to keep them motivated and committed (Danish Usman 2010). Rewards and recognitions is a form of communication with employees. It is a way to acknowledge their hard work, appreciate, motivate and to keep them committed. Thus employees feel that what they have done is being recognised and this will ultimately lead to increased employees loyalty and job satisfaction.Despite all the advantages of reward system, there is an also a disadvantage side of reward system. Although the reward system can motivate employees to do better in their work, it can also have a negative impact of the organisation. This is because rewards are usually very limited and precious, and as a result, this reward system has increased the competiveness of the em ployees in the organisation. As only a few employees out of the whole organization are entitled, this will lead to unhealthy competition between different departments of the organisation and even within the department itself. This will eventually lead to lower productiveness because people no longer willing to get by their knowledge with one another as they are afraid that others susceptibility have the upper hand to obtain the reward. In order not to lose out, they will no longer share their knowledge so in long term, this might not be beneficial as what they initially thought.In the commercial bank of Pakistan, they agree that rewards and recognitions play a significant role in helping the organisation achieving organisation efficiency. Employee motivation is identified as one of the main productions in the commercial banks. In todays competitive world, the organisation has to work closely together with the employees in order to remain competitive among peers.As the banking ind ustry contributes to a large extent to the economy of the nation, it is important to ensure that employees are motivated since employees play an important role in todays highly competitive banking sector. The management of the bank have to come out with different ways to attract and motivate the employees since for most of the commercial banks, employee loyalty and motivation are important issues as it is not an uncommon scene to see a promising employees joined to a rival bank. As the employees play an important role in the banking industry to provide good service to the customers, their enthusiastic, commitment and determination towards job completion play essential role in the success of the bank (Khan, Farooq Ullah, cited in Cheng 2010). By providing excellent service, customers will have a good look and developed a positive perception in their eyes. This is especially important for the banking sector.According to Khan, Farooq Ullah (cited in Petcharak 2010), maintaining emp loyee satisfaction with their jobs has been included as one of the job scope for the human re quotation manager. This strongly suggests the importance of employee motivation. To improve the productivity of the organisation, it is important to have a pool of highly motivated employee. In order to achieve that, reward and recognition system plays an important role. This system not only provides financial rewards but also it encourages their morale and mind with regard to their job, resulting in improvement of individual performance which eventually benefited the total team and even the organisation. It has also been reported that poor employee and organisation performance is usually caused by workplace displeasure.ConclusionFrom the example taken from both domestically and international firms, we can see a strong relationship between reward and organisations productivity. This strongly highlights the importance of reward system in todays labour market. Therefore rewards play an impo rtant role in ensuring that an organisation remains competitive and productive. Rewards lead to increasing employees motivation and job satisfaction which in turn lead to organisation profitability. Reward systems come from theories of motivation and experimental research evaluation strategies to motivate employees will affect job performance. Two most common of theories which discussed work motivation includes Maslow and Herzberg. Maslow states that higher-order needs become progressively more important as lower-order needs are satisfied (Bratton Gold 1999). Herzberg demonstrated that motivation of employees play a significant source of satisfaction when it comes to a form of reward (Bratton Gold 1999). Even though rewards might have some negative impacts on the organisation, with proper planning of the reward and recognition system I strong believe that the advantages of this system will surely outweigh the disadvantages. Therefore it can be seen that rewards do play an importa nt role in managing cultural changes in firms operating domestically and internationally.Word Count 1916 wordsReferences ListArmstrong, M 1999, A Handbook of Human preference Management Practice, 7th edn, Kogan Page Limited, The john Press, tubful.Armstrong, M Murlis, H 2007, Reward Management A Handbook of wage Strategy and Practice, 5th edn, MPG Books Ltd, Great Britain.Bratton, J Gold, J 1999, Human Resource Management Theory and practice, 2nd edn, Macmillan Press Ltd, Great Britain at The Bath Press, Avon.Danish, RQ Usman, A 2010, Impact of Reward and Recognition on Job ecstasy and Motivation An Empirical Study from Parkistan, International Journal of Business and Management, February, vol. 5, no.2, pp. 159-167, viewed 9 August 2010, Proquest Database.Heracleous, L, Wirtz, J Pangarkar, N 2006, Flying High in a Competitive Industry Cost-Effective Service Excellence at Singapore Airlines, Mc Graw-Hill Education (Asia), Singapore.Khan, KU, Farooq, SU Ullah, MI 2010, The R elationship between Rewards and Employee Motivation in Commercial Banks in Parkistan, investigate Journal of International Studies, issue 14, pp.1-18, viewed 16 August 2010, Proquest Database.Nelson, B 2003, Five Questions About Employee Recognition and Reward, Harvard Management Update, September, vol. 8, issue 9, p. 3, viewed 9 August 2010, Proquest Database.Wirtz, J, Heracleous, L Pangarkar, N 2008, Managing human resources for service excellence and cost effectiveness at Singapore Airlines, Managing Service Quality, vol. 18, no. 1, pp. 4-19, viewed 9 August 2010, Proquest Database.Warsi, S, Fatima, N Sahibzada SA 2009, Study on Relationship Between organizational Commitment and its Determinants among Private Sector Employees of Parkistan, International Review of Business Research Papers, April, vol. 5, no. 3, pp. 399-410, viewed 9 August 2010, Proquest Database.