Reward For Performance And Contribution Assignment
Introduction: Reward For Performance And Contribution
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1. Analysis
1.1 Analysis of the principles of reward as well as its significance in organizational culture and performance management
The respective study sheds light on the business context of the reward environment and it also focuses on the policy initiatives of the respective organization.
The business context of the respective organization
Different approaches to performance management
Creating natural and positive experiences of rewards for their employees
Alignment of the rewards with the goals of their organization to achieve the organization's goal (Poperwi, 2018)
Unified rewards in order to offer a proper customized deal and motivates the employees for increasing their efficiency rate
Evaluation of organization strategy and the mission of the respective organization (Parent and Hoye, 2018)
The principles of rewards deal with the payment of the respective organization to its employees as well as a proper method to reward them based on the performance of their employees. There are various rewards principles for the organizational culture, including. The employees of the respective organization show positive responses if they are designated with rewards. Moreover, it motivates them as well as increases their efficiency in their assigned work. The principles of rewards are very important for the organizational culture as well as performance management because it helps in the evaluation of strategy as well as the mission of the respective organization. Additionally, it is stated that the programs of the rewards need to consider the various types of the workforce within the organization. In addition to this, the package of rewards is completely different for the unskilled workers as well as entry-level. The principles of rewards are significant for both the performance management as well as an organizational culture since it helps the respective organization to make a proper balance between retaining talented people and giving wages in the market competition to attract the people in the market.
1.2 Explanation of policy initiatives as well as practices are executed
Clarity of assignments and management
Inaugurate written guidelines (Dover et al. 2020)
Holding meetings with its employees
Giving proper training to its employees to improve their work (Petersen, 2020)
The policy of initiatives deals with simplifying the management as well as assignments because the work is done within a single group. There are many ways to implement the policy initiatives by establishing written guidelines, holding meetings, conduct training with its employees. The establishment of proper guidelines is very important for the employees of the respective organization because it shows the violations of the prohibited acts of the concerned organization. Holding the meetings within the organization is very necessary because it helps the employees of the concerned firm to understand the different policies, which are taken by the leaders of the respective organization. Moreover, it is claimed that training is very important for the employees of the respective organization since it makes the employees more skilled in their assigned tasks. In addition to this, it helps to increase the rate of efficiency of the employees and it also helps to increase the profit margin of the organization. Conducting training of EEO is very important for the different firms because it protects the respective company from misconduct as well as the liability of employees.
Starting conversations with the associates
Proper reading about the policies of the organization as well as its business management system (Gaulin and Le Billon, 2020)
Benchmark practices of the organization
Implementation of innovative software within the concerned company (Rasiah et al. 2018)
There are various ways the implementation the practices within the respective organization by starting conversations with the associates of the respective organization. In addition to this, the practices are also implemented by a proper reading about the organization’s management, business, technology as well as websites. Moreover, it also includes benchmark practices and implementation of “Software as a service” (SaaS). The implementation of the practice of starting with associates within the organization is important because it provides better job security, and higher earning potential to the employees. There are various associates in every industry as well as in each function and most of the associates manage research and systemize the various learnings on the outstanding practices of their respective industry or function. In addition to this, there are a few expensive groups such as the company’s member-based advisory, and corporate executive report which shares as well as collects best practices from the member of the respective companies. Moreover, it is stated that having proper knowledge about the respective organization’s management as well as business is very important since it becomes very easy for the employees to work properly.
1.3 Description of how organizational performance and people can have an impact on the approach
It helps to attract top talent and to hang on for the fresh and new talents (Sanyal and Hisam, 2018)
It helps to provide a positive as well as strong culture in the company
Reinforce the “Employee Value Proposition” (EVP) and accords to employee wellbeing (Rawashdeh, 2018)
Reduce turnover of the employees and absenteeism and ease the job satisfaction of the employees
There is a positive impact on the people towards the approach to reward because it helps to attract talented candidates for the work, and it helps to keep top talent in the organization. Moreover, it is claimed that giving rewards assists a positive as well as a strong culture for the concerned company. In addition to this, it also assists to strengthen the “Employee Value Position” (EVP) and it proffers to the wellbeing of the employees. Moreover, it can be stated that it increases as well as improvise the productivity of the people and helps to construct a good reputation in the respective organization. At the same time, there are various impacts on the reward system of the respective organization, which include restorative performance and job effort, and enhancing the commitment of the employees of the respective firm. Moreover, it includes reducing turnover of the employees and absenteeism, facilitating the organizational choices and occupation of the employees of the respective organization, and easing the job satisfaction of the employees.
1.4 Comparison of different types of merits offered by organizations
Health insurance benefits the employees (Tajudeen et al. 2018)
Retirement accounts of the retired employees of the organization
“Flexible spending accounts” (FSAs)
Paid holidays are one of the major benefits given by the organization to its employees (Ketkar and Workiewicz, 2022)
There are various benefits that have been offered by the different organizations are Health insurance benefits, retirement accounts, “Flexible spending accounts” (FSAs), and paid holidays. Health insurance benefits are very important for the employees because it sanctions the employers to keep their benefits, which are normally its employees. In addition to this, there are several merits of health insurance which include coverage against the expenses of medical, coverage opposed to the critical illness of their employees. Additionally, benefits related to tax as well as cashless claim benefits and added protection above and over the employee cover. The main aim of the insurance of medical is to collect proper medical care “without any strain” on the person's finance. In addition to this, there are various merits of the retirement accounts which include returns on investment, benefits on tax, and Financial backup for the employee's emergencies. At the same time, the cost savings for the employees is one of the major merits of the retirement accounts.
Money of the employees moved into FSA before the taxation (Talavera and Sanchis, 2020)
Provides a similar benefit to pre-tax and payout tax-free income on the daily expenses
Immediate access to the funds for the employees of the concerned organization (Marjerison et al. 2022)
Reduces employee retention
There are many benefits of the flexible spending accounts that have been given by the respective organization are the money of the employees moved into a flexible spending accounts before the taxation. In addition to this, there are various types of flexible spending accounts to consider by the employer each type provides a similar benefit of pre-tax. Additionally, it allows the employees of the respective organization to pay out tax-free income on the daily expenses authorized by the plan of the concerned organization. Another merit of flexible spending accounts is the employee's financial coverage for the things which are not covered by the insurance of the concerned firm. Moreover, the major benefit is the healthcare flexible spending accounts for everyone in the family and immediate access to the funds of the employees from flexible spending accounts. One of the major benefits for the employees is paid holidays that are provided by the concerned organization. The merits of paid holidays are as follows: reduction in the unscheduled absences, competitive advantage. At the same time, it increases autonomy, helps to increase the morale of the employees, as well as it reduces employee retention within the organization.
1.5 Assessing the contribution of intrinsic and extrinsic rewards to improve employee contribution
Extrinsic rewards within the organization include extra bonuses to its employees
Compensation for individual effort (Malik et al. 2019)
Recognition of the skilled labor through rewarding
Pay raise of the employees as per their performances (Song et al. 2020)
The extrinsic rewards deal with the tangible or financial rewards given to the organization’s employees like extra bonuses, extra benefits as well as pay raises. On the other hand, the intrinsic rewards for the employees of the respective organization deal with the physiological rewards. Additionally, in this, the employees get rewards from the leaders of the organization by performing well in their assigned tasks as well as doing meaningful work in their concerned company. There are various benefits of extrinsic rewards such as it motivates the people as well as encouraging the employees to complete their work in a proper manner. In addition to this, due to the extra bonus, the employees are happier to do their assigned jobs. Moreover, it increases their efficiency rate and that is acknowledged by the respective organization, and the employee’s receive rewards according to that.
Motivate the employees of the organization (Coccia, 2019)
Intrinsic rewards are about physiological rewards
Performing well in their assigned tasks and acknowledged for that (Huang, 2019)
Intrinsic rewards include commitment and enthusiasm for the employees
Intrinsic rewards for the employees are very important because it helps to motivate the employees, and it also increases the level of performance of the employees. In addition to this, the intrinsic reward is also known as the physiological reward and this reward is given to the employees when the employees perform well with their assigned tasks. On the other hand, the motivation for the employees is fully related to the commitment as well as enthusiasm for the employees of the concerned organization. In order to motivate the employees the leaders of the organization needs to set proper goals for each employee as well as motivate them on the path to their success. Additionally, it is stated that listing to the problems of the employees helps to understand the employees as well as motivates the employees because the leaders are listing to them and they have a concern for them. Paying the employees well and on right, time motivates the employees to do their work properly because they are receiving the proper wages on basis of their work. The most important point is to encourage the employees by acknowledging their achievements of the employees and giving them intrinsic rewards.
2. Examining
2.1 Assessing the business context of reward environment
Reward environment in a business context requires paying attention to certain factors for successful reward management in companies and firms.
Companies and industries need to build effective communication among employees.
Benchmarking is an essential criterion for an efficient reward environment in businesses.
Rewarding the performance ofemployees is essential in maintaining good business in organizations by enhancing their motivation level (Ortega-Arranz et al. 2019).
Communication skills of higher authorities such as managers and leaders need to be polished and improved to maintain good and effective communication throughout organizations. Additionally, in business context rewards need to be provided to employees as per their regular performance and assessment of specific business operations. Communication is considered an initiative to provide intrinsic motivation by providing rewards through using good communication skills. Reward environment in case of business context can be assessed with the help of utilization of certain tools to examine employees' performance and effectiveness of factors associated with reward management. Reward environment of companies creates an impact on business operations of companies and industries as employees get motivated through it and offer good performance. Assessment of business context can be done by measuring these factors and their effects on businesses.
Benchmarking comes under the factors associated with the reward environment of companies that offers necessary insights for understanding their potential.
Business context can be analyzed as per effectiveness of these factors related to reward management.
Providing employee feedback comes under a reward environment and it can be analyzed with the help of a survey (Loon et al. 2020).
Non-financial rewards include providing non-traditional solutions for employees such as flexibility.
Companies provide rewards that are non-financial to their employees to retain top-performing employees in organizations. Additionally, nonfinancial rewards can include providing developmental training for employees. On the other hand, offering “non-traditional solutions” programs to employees can be considered non-financial rewards that are effective and include flexibility in working schedules and others. Analysis of non-financial rewards in the forms of developmental training, on boarding programs, and others is fruitful for analyzing business context of reward environment. Employee performance can be enhanced with the help of providing rewards and incentives to them. Businesses of companies can be improved with the help of employee feedback, maintaining good communication skills, considering non-financial rewards, and others. Assessment of these factors shows areas of business context that need further improvisation. Business operations of companies are highly dependent on employee motivation and this can be enhanced by improving the reward environment of companies.
2.2 Evaluation of the most appropriate ways of collecting benchmarking data
Benchmarking is highly related to gathering information on the performance of opponents.
Research and surveys are appropriate ways for which companies can obtain benchmarking data to develop insights.
Competitive benchmarking data can be gathered by competitor analysis in the market areas of a company (Xu et al. 2020).
Social media provide a way for gathering benchmarking data that paves a way to develop insights.
Benchmarking data is collected for several purposes and one of the most crucial ones is to generate insights to understand potential of organizations. Additionally, traditional methods for obtaining benchmarking data involve casual conversations with other companies’ employees as well as formal interviews and others. On the other hand, benchmarking data gives an opportunity for companies to determine the ways that can generate a high level of organizational performance. Benchmarking that can be gathered through significant processes of benchmarking facilitate knowledge about processes of competition as well as strategies against a company. Benchmarking data paves a suitable way for comparing other companies’ strategies with that of a certain company to offer insights into business operations and their effectiveness in market areas.
Processes of benchmarking include choosing subjects to benchmark, deciding on companies to benchmark, documenting current procedures, and collecting and analyzing data.
These measures for collecting benchmarking data are considered less reliable; however, assist to gain insights (Khoshbakht et al. 2018).
“Natural Language Processing” technology (NLP) helps to analyze these gathered data and knowledge to generate actionable insights.
Visualization of interactive data enables companies to delve deep easily into specific company-related topics.
Benchmarking data can be collected in various ways such as through news articles, reports, press releases, and other different marketing materials. Certain online software websites provide an opportunity to analyze collected benchmarking data and assist in providing insights. Comments, as well as reviews from customers, can be considered as benchmarking data that is collected from companies’ websites helping to understand the performance of companies in markets. Interactive data analysis assures obtaining comprehensive knowledge about consumers and market trends in recent days that in return is effective for gaining insights. “Competitors benchmarking data” is strenuous to gather and it requires assessing big data. There are several types of benchmarking such as strategic, internal, and competitive. Addi9tionally, with the help of these above-mentioned procedures companies, can gather benchmark information that is utilized for generating insights.
2.3 Development of organizational reward packages and approaches on the basis of insight
Generating and gathering insights pave ways for companies to improve their decision-making procedures.
Organizational insights give opportunities for improving reward approaches and packages of companies to offer employee satisfaction and motivation.
Systematically embedded key strategies that are based on organizational insights have potential to improve reward environment and management of organizations (Kirchmayer and Fratri?ová, 2020).
Reward approaches can be improved with the help of altering the process of rewards and incentives based on organizational goals and objectives.
Organizational motivation can be gained through the utilization of improved reward approaches in companies that in return enhance motivation level of employees. Companies can utilise several motivation theories such as Maslow's and others to improve their reward strategies and approaches. Companies need organizational insights in developing reward approaches and reward packages. Insights assist companies to increase their returns on sustained performance of a business and transformational efforts. Additionally, transformational efforts of companies that are generated from insights are conducive to improving the reward approaches. Benchmarking data gives insights and with the help of this companies can understand whether they need to improve their reward packages.
Various types of reward approaches and their strategies give rise to various opportunities.
An intrinsic approach to rewards known as non-tangible rewards is effective in generating long-term motivation.
Additionally, while improving reward packages companies need to consider several matters such as benefits, impacts, bonuses, conditions, company policies, and others.
Budget of companies needs to be improvised prior to improving reward approaches and reward strategies (McGahan, 2021).
Insights provide an opportunity to understand market conditions and compare between prevailing conditions of market, and demand for new dynamics in supply. Organisational policies have a direct impact on improvisation of reward systems and reward approaches in companies. Additionally, insights provide a suitable way for enhancing effectiveness of reward approaches by unveiling limitations of current reward systems of companies. Reward approaches and reward strategies are essential to motivate employees to show their potential and efficiency in their regular job performance. There are different reward approaches such as intrinsic and extrinsic, financial, non-financial, performance-based reward approaches, and membership approaches to reward.
2.4 Explanation of legislative requirements impacting reward practice
Legislative requirements refer to ordinances, regulations, by-laws, orders, and others that create a direct impact on reward practices.
Company policies and laws can create a huge impact on reward environment of organizations that in a majority of cases are beneficial for introducing effective reward practices (Yong et al. 2020).
Policies related to company budgets can create issues for funding for rewards in organizations.
Rewards need to comply with certain legal regulations of companies that can provide effectiveness to reward systems.
Employment laws of companies cover specific areas such as legislation for equal pay, and minimum wages for ensuring minimization of prejudices in organizations. Reward systems need to comply with regulations related to employment laws. On the other hand, company policies such as providing rewards for contributing high-level of performance need to be reflected in reward practices of companies. Companies’ reward practices and schemes need to complement ethical legislations of companies.
Companies follow specific rules, policies, and regulations for benefit and well-being of employees.
Reward practices of companies can be included in company policies for establishing good reward practices throughout organizations (Rawashdeh, 2018).
Performance-related payment and incentives come under legislation of companies to provide equal amounts of incentives and rewards for similar performance of employees in workplaces.
Commission refers to a form of “remuneration” used for different sales staff and company legislations include commissions covering areas of reward practices.
Incentives and rewards need to be provided by companies to employees that in return increase motivation level of employees. Legislations and laws of companies include rewards, incentives, and others in their employment regulations. Companies need to reflect on their policies while providing incentives and rewards to their employees and workers. Companies require funds for maintaining a healthy reward practice throughout their workplaces.
3. Execution & Review
3.1 Assessing various approaches to “performance management”
The comparative approach includes a ranking of the employees based on their performances (Fu et al. 2020)
The behavioral approach is one of the approaches to the performance management
The attribute approach includes problem-solving skills, teamwork, and communication
The quality approach includes problem-solving by teamwork (López-Fernández et al. 2018)
Various approaches for the performance management of the respective organization approach, behavioral approach as well as attribute approach. The competitive approach deals with the ranking of the employees of the respective organization on the basis of their performance in the workplace. The approaches of the performance management depend on the performance of the employees on the various factors such as conductive work environment, work profile, compensation as well as a bonus system within the concerned firm. The attribute approach in order to measure the performance of the employees includes the skills of problem solving, and communication among the team members of the organization. Moreover, teamwork is the major skill for the employees to do the tasks or the projects properly. Additionally, it is stated that judgment, as well as creativity with innovation, comes under the attribute approach.
The resulting approach is very important for the performance management
A quality approach improves the customer satisfaction (Huang, 2019)
The resulting approach is based on the Balanced Scorecard technique
A balanced scorecard focuses on the financial, and internal parts of the organization (Coccia, 2019)
The other approaches to project management are the result approach, as well as the quality approach. The resulting approach is very important for the project management since in this the respective organization mark their employees based on the performance results of the employees of the concerned organization. Moreover, it is stated that the approach of result is based on the “Balanced Scorecard technique”. The technique of a balanced scorecard focuses on the various parts such as financial, internal and operations, customers, leading as well as the growth of the different organizations.
3.2 Reviewing the role of different people practice in case of supporting line managers to make reward judgments
It encourages the employees
Rewards increase self-esteem (Rasiah et al. 2018)
Rewards improve the relationship between the organizational leader and employees
Increase their efficiency rate (Sanyal and Hisam, 2018)
The judgments on the rewards need to be done properly to give rewards to the employees of the concerned organization. The managers of the concerned firm reward their employees by saying thanks to their employees in front of all the employees. Additionally, by giving handwritten notes to the best-performed employees is to motivate them to increase their efficiency rate. Moreover, it can be stated that the managers of the organizations can give small gifts or give them increment in their designation to motivate them.
3.3 Explanation of the ways for line managers to make reward judgments based on organizational approach
Rewards the employees based on the business values
Provide performance feedback (Petersen, 2020)
Provide coaching feedback
Provide well-being to the employees (Dover et al. 2020)
The line managers of the respective organization play a very important role in order to communicate the respective organization's reward benefits to their employees and developing the reward strategy of the respective organization. The reward strategies of the respective business are based on the business values of the concerned organization. The role of the line managers is to provide performance and coaching feedback to all the employees.
Conclusion
Various principles for the reward of employees
Benefits of the respective organization
Based on the above study it can be concluded that there are various principles for the reward of the employees due to this it motivates the employees and encourages them to increase their efficiency rate. In addition to this, the respective study also highlights the different types of benefits that are offered by the respective organization.
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