1. Introduction Rewards and recognition processes play an essential role in any hospitality organization willing to achieve its goals and objectives. Also, it is imperative for the hospitality workplace to motivate its employees using rewards and recognition theories. Rewards can recognize employees’ individual efforts and increase employees satisfaction. Recognition can achieve sales target and build an effective teamwork.The correlation between business goals and objectives and employees’ performance enhances human resources as important resources owned by an organization. Therefore, in order to motivate staffs and enhance employees’ performance, human resource managers use reward and recognition processes to retain more effective and talented workforce in the hospitality workplace. This report provides a discussion on the reward and recognition theory and states the importance of these theories applied to the hospitality industry. For instant, this includes the concept of intrinsic rewards and extrinsic rewards, and informal recognition and formal recognition. Moreover, the report aims to find reward and recognition problems as related to the identified case study of Capitol Hotels of New Zealand, and provides recommendations for the identified problems that can improve the performance of Capitol Hotels of New Zealand. Reward and Recognition Theory 2.1 Reward Theory 179/300 Rewards include two main parts there are intrinsic rewards and extrinsic rewards (Rudman, 2010). Intrinsic rewards, which is intangible and usually comes from itself，refers to the feeling of self-worth and accomplishment, and includes interesting work, growth, and responsibility. Intrinsic rewards related to job itself, job enrichment, job enlargemen... ... middle of paper ... ...ournal, 37(3), 321–328. doi:10.2224/sbp.2009.37.3.321 Reid, D. (2009, April 24). Establishing sales targets. Management matters, 237(6199), 17. Retrieved from http://search.proquest.com.ezproxy.aut.ac.nz/docview/229375608 Rudman, R. (2010). Human resources management in New Zealand. New Zealand: Pearson. Sarwar, S., & Abugre, J. (2013). The influence of rewards and job satisfaction on employees in the service industry. The Business and Management Review, 3(2), 22-32. Trends in Employee Recognition (2005). Scotsdale, AZ: WorldatWork. Types of sales targets. (2013, November 15). Retrieved from Queensland Government website: http://www.business.qld.gov.au/business/running/sales-customer-service/sales-targets/types-sales-targets Wood, R. (1994). Organisational Behaviour for Hospitality Management. Oxford UK: Butterworth Heinemann.
In a business or a workplace, it is essential for the organization, which consists of the employers, the managers, and their employees, to work towards reward programs within the human resources in order to create a healthy and cordial work environment and most importantly, to efficiently achieve business’ goals. In Carol Patton’s (2013) article, Rewarding Best Behaviors, she explains the importance of several companies that are beginning to recognize their employees, not just for the end-results, but for reflecting good behaviors towards the business’ values, such as demonstrating creativity on certain projects, problem solving towards certain issues, and also collaborating with fellow co-workers. Patton stresses that these reward programs could help suffice the overall being of a company as long as the rewarded behaviors correlate with the corporate strategy. Patton expresses that some things human resources must comprehend include “how its company creates success, what drives its business strategy and what behaviors are needed from employees to achieve that success” (Patton, 2013 para. 15). Moreover, the employee would be reflected as a role model for others and perhaps influence them to demonstrate comparable behaviors.
Job satisfaction is an important issue to address within a work force because it ensures that the employees’ care and value is considered. If the company puts effort into making their employees happy with their work, then this will produce positive outcomes. This includes having more people wanting to work for the company, the employees will want to stay longer, increased productivity and the company will gain an exceptional reputation. When employee satisfaction is not addressed, the ...
While motivational and job satisfaction theories can help employers or leaders to gauge what motivates their employees, it is impossible for them to be used to explain all motivating factors. By analyzing these theories, it is possible to understand their basic concepts, and see how they can be an advantage in motivating their employees to the best possible outcome for the
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...
Mullins (2002) classifies motivation into Intrinsic and Extrinsic types. Intrinsic motivation involves psychological rewards to enhance job satisfaction, such as the opportunity to use one's ability, a sense of achievement, receiving appreciation and positive recognition or being treated in a considerate manner (Mullins, 2002:P490). Such methods ensure employees are constantly motivated while being engaged in activities that are enjoyable and rewarding.
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
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.
Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. It has been treated both as a general attitude and satisfaction with five specific dimensions of the job: pay, the work itself, promotion opportunities, supervision, and coworkers. Challenging work, valued rewards, opportunities for advancement, competent supervision, and supportive coworkers are dimensions of the job that can lead to satisfaction (Nelson & Quick, 2013, pg. 58-59).
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
Today businesses believe that the sustaining of performance and competitive advantage to becoming a great organization. As an organization’s success depends on their employees’ performance, the value of specific individual employee has played an important role within an organization to be competitive. At that time, the value of each and individual employee and their satisfaction with their jobs are one of the key factors for an organization and organizations need to find ways to improve employee job satisfaction to achieve organizational goals.
Mullins (2002) also classifies motivation into Intrinsic and Extrinsic types. Intrinsic motivation involves psychological rewards to enhance job satisfaction, such as the opportunity to use one's ability, a sense of achievement, receiving appreciation and positive recognition or being treated in a considerate manner (Mullins, 2002:P490). Such methods ensure employees are constantly motivated while being engaged in activities that are enjoyable and rewarding.
This study examines the performance management and reward strategy used in Unilever to retain and motivate their employees for a long term. Both intrinsic and extrinsic rewards are given to employees to make them loyal and to utilize their skills to further improve the performance of Unilever. Almost all the factors of reward strategies and performance management are discussed and evaluated accordingly. Performance of the employees might be get affected if the rewards are not given to employees, so to motivate them furthermore the Maslow Hierarchy of need theory is also recommended to Unilever to make their employees loyal.
Job satisfaction includes challenging work, interesting job assignments, equitable rewards, competent supervision, and rewarding careers. The quality of work life and psychological rewards from employment are very important. It is doubtful, however, whether many of us would continue working were it not for the money we earn. This paper establishes the definition of compensation, overview of compensation philosophy, critical components of a compensation strategy, and an example of an effective compensation practice. (www.indiana.edu/~busx420/Book.../chap09.doc)
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
Job satisfaction represents one of the most complex areas facing today’s managers when it comes to managing their employees. Many studies have demonstrated an unusually large impact on the job satisfaction on the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business organizations. There is a considerable impact of the employees’ perceptions for the nature of his work and the level of overall job satisfaction. Financial compensation