Designing_a_Rewarding_System

Designing a Rewarding System Angelia Cullom Axia College University of Phoenix June 15, 2007 Designing a Reward System According to Wikipedia “a reward is that which is given following the occurrence of a behavior with the intention of acknowledging the positive nature of that behavior, and often with the additional intent of encouraging it to happen. The definition of reward is not synomous with the definition of re enforcer, which includes a measured increase in the rate of a desirable behavior following the addition of something to the environment. There are two kinds of rewards intrinsic and extrinsic. Intrinsic rewards are internal to, or within, the individual; for example, satisfaction or accomplishment. Extrinsic rewards are external to, or outside of, the individual; for example, praise or Money. In psychology, motivation refers to the initiation, direction, intensity and persistence of behavior (Gen, 1995). Motivation is a temporal and dynamic state that should not be confused with personality or emotion. Motivation is the desire and willingness to do something. Personality invariably refers to more or less permanent characteristics of an individual’s state of being. As opposed to motivation, emotion refers to temporal states that does not immediately link to behavior. Organizations undertaking change initiatives must engage employees. Paying the employee instead of the job and offering variable incentives and stock are two of the most powerful changes an organization can make in moving its reward system toward one that supports performance change. Organizations should be built to change. There is a variety of features that can be effective. An organization that is built to change, the role of rewards and motivation promoting change is of the up most importance in an organization built for change. My reward system will focus on motivational tools that promote increased output and personal change. Methods Used: This Reward System Design is based on a search of the literature and Ideas derived from my own personal work experience. Mine is the bonus system and a four step “Reward Ladder.” The Bonus System is a tool that demonstrates the valued of the employee. It involves points for processed productivity, “on time” behavior. It also recognizes multiple degrees of longevity, performance evaluation, compensation and special achievements. Rewards can be based on jewelry and other merchandise. Reward system: • Award Diversity: Versatile corporate emblems, tasteful medallion watches, highly prized award rings, and hundreds of gift selections ranging from binoculars to outing kits, sporting knives to heirloom quality clocks, and cameras to crystal. The employee gift will be as individual as its recipient. • Assured Exclusivity: To be truly effective, employee service awards must be unique and exclusive. Every award will be customized using the company name or symbol. A watch is just a watch, but a tastefully designed timepiece featuring the company logo is an award available only to those who have earned it. • Investment Controls: Graduated award levels at specific and predetermined price points make it a simple process to match awards to accomplishments and service. • Communication: Managers will communicate the criteria for awards and recognition, and show employees ways to earn their recognition and service awards. By publicizing and promoting the program, managers can motivate employees to participate as well as increase the prestige associated with awards. This criteria, along with other organizational specific input, help maximize the benefits of employee recognition. (Britton, 1999) Criteria Used: In my reward system I have use the Need-Path-Goal Model (Miles, 1975; Poter and Lawler, 1968). This model deals with the needs of the employee, help the employee determine his/her goals and achieve their goal. My system is built on the criteria of the Allocating Extrinsic Rewards and Employee Benefits. Klubnik (1995) declares “ in order to reap benefits such as increased productivity, the organization designing a reward program must identify company or group goals to be reached and the behaviors or performance that will contribute to this. teamwork is a business goal, a bonus system rewarding individuals who improve their productivity by themselves or at the expense of another does not make sense. Likewise, if quality is an important issue for an organization, the reward system that he or she designs should not emphasize rewarding the quantity of work accomplished by the employee.” Henemen (1995) claims as “more organizations use team structures to reach their goals, management looks for ways to reward cooperation between departments and individuals. Bonuses, profit sharing, and stock options can all be used to reward team and group accomplishments. An organization can choose to reward individual or group contributions or a combination of the two. Group-based reward systems are based on a measurement of team performance, with individual rewards received on the basis of this performance. While these systems encourage individual efforts toward common business goals, they also tend to reward under performing employees along with average and above-average employees. A reward program which recognizes individual achievements in addition to team performance can provide extra incentive for employees.” A recognition program may appear to be merely extra effort on their part with few tangible returns in terms of employee performance. While most employees certainly appreciate monetary awards for a job well done, many people merely seek recognition of their hard work. For an organization with more ingenuity than cash available, this presents an opportunity to motivate employees. (Glasscock, 1996) Deeprose (1994) states “recognition can take a variety of forms. Structured programs can include regular recognition events such as banquets or breakfasts, employee of the month or year recognition, an annual report or yearbook which features the accomplishments of employees, and department or company recognition boards. Informal or spontaneous recognition can take the form of privileges such as working at home, starting late/leaving early or long lunch breaks. A job well done can also be recognized by providing additional support or empowering the employee in ways such as greater choice of assignments, increased authority, or naming the employee as an internal consultant to other staff. Symbolic recognition such as plaques or coffee mugs with inscriptions can also be effective, provided they reflect sincere appreciation for hard work. These latter expressions of thanks will be received positively. Employees will look less kindly on managers of thriving organizations who use such inexpensive items such as centerpieces of their reward programs. Both reward and recognition programs have their place in organizations. Organizations should first determine desired employee behaviors, skills, and accomplishments that will support their business goals. By rewarding and recognizing outstanding performance, organizations will have an edge in a competitive corporate climate.” In order for a rewards program to be successful, the specifics need to be clearly spelled out for every employee. Motivation depends on the individual's ability to understand what is being asked of him/her. Once this has been done, reinforce the original communication with regular meetings or memos promoting the program. Keep your communications simple but frequent to ensure staff is kept abreast of changes to the system. (Spitzer, 1996) Conclusion We hear the word “reward” daily. It can be said that a “reward system” is a vehicle That motivates, encourages and stimulates the American lifestyle. Parents offer rewards to their children to encourage appropriate behavior and to stimulate academic excellence. Some form of reward system is used in the work place to motivate employees productivity and work performance. References Britton, P. (1999). “Rewards of Work.” Ivery Business Journal. Deeprose, D. (1994). How to Recognize and Reward Employees. AMACOM. Glasscock, S. (1996). “Winning Ways: Establishing an Effective Workplace Recognition System.” National Productivity Review. Henemen, R. (1995). Balancing Group and Individual Rewards: Rewarding Individual Contributions to the Team.” Compensation and Benefits Review. Klubnik, J. (1995). Rewarding and Recognizing Employees. Irwin. Spitzer, D. (1996). “Power Rewards: Rewards That Really Motivate (Employee Incentives).” Management Review.