3.0 The HIS Current Incentive Scheme
An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.
3.1 Key Weaknesses with the Incentive Scheme in terms of Motivation
The Sales Division’ performance is dissatisfactory because it lacks commitment and the directors are unhappy about it. Clients have been complaining about being sold expensive policies only to discover later that they were not as extensive as they were led
…show more content…
Armstrong (2007) notes that traditionally, the conversation of global reward strategy has been centred on a small group of elite expatriates moved from the company’s headquarters and rewarded in concealment from the local staff (p. 24). The strategic approach today is too reward all performers regardless of whether they are expatriates or locals. The HIS, which may hire members from their home country should design a reward and recognition system that is meant for all performers to prevent a situation where employees feel that rewards are for a certain level or
Firstly, there was compelling emphasis placed on exterior factors, for instance, Scanlon Bonus Plan, a motivator plan that inspires and drives employees’ performance, yet neglected to cultivate workers ' needs. If the Plant business integrates the Maslow’s Hierarchy of Needs into their strategic management process, it will guide them in evaluating employees’ needs. Engstrom Auto Mirror Plant should settle on the choice of keeping the current system in place, modify it, or design a new incentive plan. Keeping the ongoing incentive plan would be an awful decision for different reasons that were examined in preceding milestones; subsequently, the undeniable decisions would be to either correct the present plan or to make an altogether new one. For this proposition, it is ideal that a new incentive system be
Overall, the score of the article is a 95 out of a 100 because the author, Carol Patton was able to lure me into reading her entire piece. Additionally, after reading the article, I felt that I gained a bit of knowledge on the importance of reward programs and how it should be a “must have” in the work environment.
Reward and recognition has to be promoted for small and large achievements. An effective reward’s program keeps employees engaged, dedicated, and committed to the organization.
A number of motivational theories explain how rewards affect the behavior of individuals and teams. Performance related pay can have a motivational effect. Employees are motivated to increase prod...
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
If a company goes on making loss, it cannot survive in the business world. So, the success of company depends much on the performance of the sales representatives. There is no chance for sympathy and compassion. Willy Loman, a born salesman with dynamic outlook, fails to realise this pragmatic aspect of his job and comprehend the difficulties in his career. Richard T. Hise(1980) points out, “Because of the travel requirements, salespeople frequently find that they have to be away from home for extended periods of time.
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s
The newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision will affect everyone's earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon require a new sales rep.
The possible best solution to the cultural differences within WIYCR is to promote cultural unity by changing the mindset of WIYCR¡¦s expatriates, leading to a working environment with harmony, thus increasing overall performance. We need to consider the implementation of overall change in WIYCR¡¦s culture in short term and in the long run separately. As Christmas peak season is coming, we must focus on implementing steps in trust building and working as a team. In the long run, main focus is placed on improving the communication and relationship between the resort and head quarters to improve the overall efficiency. However, reward system is not in the recommendation as it is not a very effective measure to change the working attitudes of local workers, due to the fact that they enjoy the relationships with coworkers, family and friends rather than monetary or other rewards.
These are usually offered in the form of some type of bonus. Thus the purpose of a non-monetary incentive is to reward the employee after the fact of doing a good job. This may not always be the case for every type of non-monetary incentive, but these rewards are not generally something the employee works toward. Both monetary and non-monetary incentives can be effective in the workplace, but up to varying degrees. The Financial Methods used in form of incentives are Piece rates, salary, bonuses, profit sharing, time rates, commission, share ownership, performance related pay. Non financial Methods such as Job enlargement, job enrichment, team working, fringe benefits, Job-rotation are being given. In banking sector various types of incentives programs exists for boosting up employee psychologically. The question “Do the money /monetary rewards motivate employees?” has been asked for decades and there are numerous motivation theories that try to explain the extent to which money motivates employees. The overall success of an organization in achieving its strategic objectives relies entirely on the performance level of employees. Organizational incentives can affect attitudes, behaviors, and motivation. Therefore, it is important for managers to understand and appreciate clearly their importance at work place. According to Williams (2001) that conditions necessary for
In the past few decades, the world has experienced heightened globalisation. During this period, organisations have prioritised setting up leaders capable of dealing with the ever-increasing involvedness of running their global operations. Overseeing global talent along with career paths is consequently a decisive challenge in lots of multinational organisations. Individuals as well as organisations perceive International assignments as a constructive way of developing global occupational competencies (Brewster & Suutari, 2005).
In any organization, sometimes, monetary schemes doesnot get people involve to pursue work in a certain way, rather it demoralize and threatens the self-esteem of employees. According to Meyer (1975), “the basis for most of the problems with merit pay plans is that most people think their own performance is above average”. The amount may ...
Organizations in the United States spend billions yearly on incentive programs, which became a problem with management questioning its effectiveness. New research shows that these programs can improve work performance and motivation. However, it has to be administered in