...Assignment #5 – NEW AND IMPROVED REWARDS AT WORK Leslie Medlock June 15, 2012 Total Rewards - HRM 533 Dr. Judie Bucholz, Instructor Assignment #5 – New and Improved Rewards at Work 1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. The innovations in employee benefits can improve the overall competitive compensation strategy of the organization tremendously in a positive manner due to the employee benefits strategy directly contributes to the success of an organization by attracting and retaining good employees. The benefits offered by an organization are an extremely important part of the puzzle in order for an organization to retain their top talent and for the organization to be competitive in the job market and the success of the organization. In order for the success to take place an organization must present itself differently than others; the employee benefits tied into the competitive compensation strategy is a very successful differentiator to make this happen. Some examples in which an organization could implement in reference to benefits to improve the overall competitive compensation strategy: • Education Benefit – This is plan in which help an employee save money and prepare for their child (ren) education. This benefit could cover the child (ren) tuition, room and board, book and supplies. • Scholarships – Which would be paid by the organization that...
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...specific jobs. After that, it critiques the effectiveness of equity-based rewards systems versus those with more creative approaches and discusses the key elements of integrating innovation into a traditional total rewards program. And last, it recommends a process that optimizes an employee-based suggestion program to continually refresh the total rewards of the organization. 1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In this century, every dimension of life changes so fast. In unison, the way of companies doing business, personal lives of employees and employers, and working environments change, too. To stay in the business, companies need to comply with these changes. Employees have changeable needs and companies need to make employees keep working with their comprehensive benefits. They must find innovative ways of engaging employees that encourage and support their commitment and improve their performance. Otherwise they will be out of the race. Also, in this century, in workplaces the diversity of workforce increases. Companies must understand and address the diverse needs of their workforce to survive, thrive, and stay competitive. For example, the dramatic increase on women in the workforce, resulting in the rise of the dual focus worker- workers focused on work and family, rather than on work or family- and the aging of the workforce are among the most critical factors...
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...Classic Airlines is facing the same issues that many organizations are faced with which is providing increased value to their customers with a tighter budget, as the fifth largest airline Classic airlines has had declining profits and their stock prices have fallen this has adversely affected the organization. To make matters worse Classic Airlines has lost 19 percent of their Classic reward members; and the members they have left are flying with Classic even less these days (UOP Portal, Classic Airlines, 2011). This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report. Chief Executive Officer Amanda Miller has tasked the leadership teams to make improvements to the frequent flier program that will promote positive returns. The board of directors recently mandated a 15 percent cost reduction across the board that will be in effect for the next 18 months. To achieve this task Classic will need to analyze feedback from customers and understand their objectives and align those with their long term goals. The issues and opportunities present in Classic airlines will be addressed as well as any ethical dilemmas or stakeholder perspectives that need to be addressed. The problem definition and the end state vision will be discussed and the optimal solution will be proposed for Classic Airlines. Issue and Opportunity Identification Classic Airlines has several issues that they need to address...
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...Alignment of Reward and Recognition Programs with Organizational Strategies for Effective Total Quality Management Quality Function Management and TQM April 10, 2009 Total Quality Management (TQM) as a management philosophy emphasizes the importance of meeting and exceeding customer (internal or external) expectations through the continuous quality improvements. To achieve competitive advantage, total quality organizations develop and establish goals, plans, and policies. Employees are internal customers of organizations, the efforts of which are directed towards meeting the expectations of external customers (Chang, 2005). Employees are valuable assets of organizations whose knowledge, skills, and performance impact the overall performance and success of organizations (Boon et al., 2007). Studies have demonstrated that in the era of globalization, increasing competition, and re-organization, employees not only work for gaining profits but also search for organizations that acknowledge and celebrate their achievements and efforts (Campbell-Allen, Houston & Mann, 2008). The data from “World at Work” surveys has demonstrated that being dissatisfied with employers, in 2003, approximately one-third of employees were considering other jobs while by early 2007, over 54% of employees were poised to leave for other job alternatives (Huff, 2007). P. B. Crosby stated that “people really don’t work for money. They go to work for it, but once the salary has been established...
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...is valuable to its employees and stakeholders. Although between employer and employee there is an exchange of money for labor, intrinsic motivation is also a driving force which empowers and uplifts the employee to accomplish the required tasks more effectively. Extrinsic rewards such as bonus and commission are tangible rewards that companies bestow on employees who achieve set levels of performance (Resnick, 2009). According to (Deci, 2000), intrinsic motivations are intangible rewards such as inspiration and job satisfaction that employees get from doing meaningful work and performing it well. Hence, it is critical for organizations to examine and have an in depth understanding of these effects towards employee's motivation. 2. Effects contributing to extrinsic rewards Extrinsic rewards are appreciation through compensation which an organization pays to its employees for better performance, commitment and efficiency at work (Muhammad Ehsan Malik, 2010). Extrinsic reward is highly related to company policies and administration, supervision, interpersonal relationships, working conditions, salary status and security (Herzberg, 2003) (Gkorezis, 2008). Other example of extrinsic rewards are financial rewards, training, promotion or advancement opportunities within organization, the social climate, and physical working conditions, extra vacation time (O'Driscoll, 1999) (Panagiotis Gkorezis, 2008) (Resnick, 2009). (Herzberg, 2003) proposed two factor theory of motivation, hygiene...
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...for companies to take into consideration the impact of employee needs, morale and expectations and to negotiate appropriate work arrangements for motivating employees as part of performance recognition. The following paper presents a discussion on the importance of employee motivation in the workplace. The discussion is mainly based on literature review and points that employee motivation is necessary for improved work performance. The paper has explored the important contributing played by work-life balance and financial incentives in improving employee motivation. The research indicates that the two factors foster loyalty by employees, increased performance and commitment, which are essential indications of motivation. The concept of Employee Motivation and Rewards Most discussions of motivation begin with the concept of individual needs – the unfulfilled physiological or psychological desires of an individual. Content theories of motivation use individual needs to explain the behaviours and attitudes of people at work. The basic logic is straightforward. People have needs. They engage in behaviours to obtain extrinsic and intrinsic regards rewards to satisfy needs (Schermerhorn et al, 2011). According to Jenkins, Mitra, Gupta and Shaw (2001) employee motivation is an intrinsic drive and enthusiasm to successfully accomplish tasks related to work. Greene (2001) has defined it as an internal drive which causes individuals to take initiatives in the workplace. In their...
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...Running Head: STARBUCKS REWARDS AND PERFORMANCE The purpose of my research is to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers...
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...outcomes such as shared intelligence, improved performance, or higher levels of innovation. Role of knowledge management The goal of Knowledge Management is not to capture all knowledge, but rather manage the knowledge that is most important to the organization. It involves applying the collective knowledge and abilities of the entire workforce to achieve specific organizational objectives. * Increases customer service-responding to customer’s faster with more relevant and complete information gains sales and retains clients. * Compliance with regulations- effective knowledge management will reduce the cost of audits and assist in complying with regulations such as health and safety. * Reducing administration labour cost-less movement of information around and outside the company saves staff time and cost of labour. * Better collaboration- projects requiring content and information from different departments and external parties benefit from easy access allows greater team work and competition. * Reduce wastage of time and mistake-Access to constantly updated information from an easy to locate source prevents repetition of work on out of dated documents. Staff can add and edit information efficiently and quick. * Improving competitive advantage-The goals and expected outcomes of an organization with effective KM include improved organizational effectiveness, improved productivity, a way to capture best practices, improved decision making, becoming a more...
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...Incentive Compensation: Total Rewards BUS 405 Labor Relations August 21, 2011 Corporations have a responsibility to their employees and their company to retain the best employees. This is done through total rewards. Total rewards are tools used to attract employees as well as motivate and retain them. Total rewards are anything the employee perceives to be of value resulting from the employment relationship. Any successful total rewards approach has five top advantages. The advantages include: improved recruitment and retention, reduced labor cost and cost of turnover, heightened visibility, and enhanced profitability. Each area is important to the success of the total rewards approach. Increased flexibility speaks to the business’ ability to think out of the box and walk away from the one-size-fits-all approach to benefits. Improved recruitment and retention strengthens the power of the business in terms of hiring high potential employees while ensuring they retain those employees. “Today’s workers are looking beyond the ‘big picture’ in deciding where they want to work. Work and personal life should be seen as complementary priorities, not competing ones” (Saville). Ultimately, a total rewards system must offer the employee an advantage to working for them. The reason this is important is because competing companies all have something to offer potential employees in the hiring and retention aspect. Therefore, the total rewards approach allows the business...
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...action after they have – often subconsciously – evaluated three critical components of the theory. * Expectancy: the relationship between an individual’s effort and her performance (or the effort-performance relationship). If an employee believes her additional effort will be recognized in a future performance evaluation, she may be more likely to exert more effort in her work. * Instrumentality: the belief that an individual’s performance will result in a reward for that performance (or the performance-reward relationship). If an employee works for an organization that rewards employees with salary increases or promotion based upon positive performance evaluations, the employee may feel justified in the additional effort he has exerted to receive the positive evaluation. However, if the organization only offers such rewards based upon employee tenure or to employees who pander to their boss’ egos, they may find their employees are not motivated to “go the extra mile.” * Valance: the value the individual places on the reward when considering his personal goals, needs, and values (or the rewards-personal goals relationship). One employee may be motivated by the possibility of receiving a small bonus for their performance while another may not value small bonuses has highly,...
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...ASSIGNMENT #1 TOTAL REWARDS Describe each of the top five (5) advantages of a total rewards approach. According to the book, WorldatWork, (2007) total rewards are the monetary and nonmonetary return provided to employees in exchange for their time, talents, efforts, and results. It has five key elements; compensation, benefits, work-life, performance and recognition, and development and career opportunities that attract, motivate, and retain the talent required to achieve results. The need for a total rewards approach is getting stronger everyday and has many advantages for the employee and company. The top five advantages of a total rewards approach are increased flexibility, improved recruitment and retention, reduced labor costs/cost of turnover, heightened visibility in a tight labor market, and enhanced profitability. Increased flexibility allows employers to create different blends of rewards packages for different workforce segments. The rewards programs are now able to be mixed and remixed to meet different needs of the employees. In this era the employees must integrate their life style and their work and the flexibility through the program allows them to determine when they work, where they work, and how they work. Improved recruitment and retention is a reward strategy used to handle the issues created by recruitment and retention. Normally, money is used as the solution but since it raises the company costs instantly they developed a deal that addresses...
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...Behavior and Leadership Role of Rewards in retaining skilled Employees Presented To: Dr. Akl Keyrouz Presented By: - Amale R. Abboud [ID: 19030] - Chimène M. Abou Nahoul [ID: 19542] Contents Abstract: 2 Introduction: 2 Overview of Literature 2 Results Discussion: 2 A- Employee Reward and Recognition Systems 2 1- REWARD VS. RECOGNITION 2 2- DESIGNING A REWARD PROGRAM 2 3- TYPES OF REWARD PROGRAMS 2 a- Variable Pay: 2 b- Bonuses 2 c- Profit Sharing 2 d- Stock Options 2 B- Reward Systems and Organizational Change 2 1- Reward as a Lead 2 2- Reward as a Lag 2 3- Rewards as a Motivator of Change 2 C- Conclusion 2 References: 2 Abstract: Reward is one of various human resource (HR) tools that organizations use to manage their employees. For an organization to collect its money’s worth, stimulate, and preserve skillful employees, it needs to confirm that its compensation system is not an island by itself. Not only is it important for an organization to tie reward to its general goals and strategies, it is vital that its compensation system supports with its HR strategy. Too many organizations plan and control their pay systems by default; or worse, fall back on “the squeaky wheel gets the grease” practices. More than any other area in HR, disregarding pay and performance systems can be devastating. It is a very costly and laborious procedure to employ new employees, buy back trust of existing...
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...company’s COO, was quoted as saying “We want smart people, who work hard, and who get things done.#” To get the best employees, you have to offer the candidate something enticing. Microsoft saw their benefit as giving employees the opportunity to change the way people live and do business, and in turn, change the world. They recruited from the top schools, and when they saw a candidate they liked, they got them. Microsoft was an intense culture, who pushed their employees to be the best. However, as Microsoft matured and experience changes in their company due to explosive growth, they found it increasingly hard to and retain and motivate the extraordinary people that had worked their way up to senior levels within the company. In Microsoft’s early days, they experienced the benefits of being one of the leaders in technology advancement. One of their best attributes was their reputation that made it appealing to top new developer candidates. Microsoft preferred creative, smart and motivated individuals to experienced and knowledgeable candidates when recruiting for new hires. They therefore recruited the top talent of top universities like Harvard, MIT and Yale. They looked for individuals that were not afraid of working long hours and under demanding constraints. They pushed their employees to the limit. Their “n minus 1” philosophy was an example of this by having one less employee than the work really required. Developers were also given stretch assignments...
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... University title OPERANT CONDITIONING 1. Introduction Operant conditioning is a type of behaviour that is acquired through rewards and punishment of a particular behaviour. It is also known as instrumental conditioning. It creates an association between behaviour and a consequence of that behaviour. Operant conditioning was named after a behavioural psychologist who was known as B. F Skinner, and may sometimes be referred to as Skinnerian conditioning. Skinner having studied both human and animal behaviour for a long time concluded that a person’s internal thoughts and behaviour could not be used to determine ones behaviour. On the other hand, he proposed that people should look at the external observable causes of human characteristics. He coined the term ‘operant’ as the active behaviour of a human being that acts upon the environment to result in particular consequences. Skinner attempted to explain how we acquire the varied types of behaviours that we exhibit each and every day. (Harnad, Stevan R; Catania, Charles A, 1988) The key concepts in operant conditioning are reinforcement and punishment. Reinforcement is further categorised into two: positive reinforces and negative reinforces. Positive reinforces are the favourable outcomes of a behaviour. The response or the behaviour is strengthened by praise or a reward. On the other hand, negative reinforces refer to the withdrawal of an unpleasant outcome after a particular behaviour. In either reinforcement...
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...traditional organizations because individual contributions add to the group goal. High performance workplaces create effective teams who share accountability. Team skills complement individual skills and contributions from team members increase the value of the team’s accomplishments. To improve work effort high performance teams motivate employees through intrinsic rewards and extrinsic rewards (Schermerhorn, Hunt, & Osborn, 2008). Intrinsic rewards do not require participation from management and are self-perceived feelings of achievement when positive work outcomes support individual needs and goals. Extrinsic rewards are given to individuals by the organization for positive work outcomes and include compensation and recognition. Workplace stress occurs when individuals face extraordinary demands, constraints or opportunities and are often perceived differently by employees and management. High performance organizations recognize constructive stress increases work effort and stimulates creativity and that destructive stress can be dysfunctional for the individual and the organization (Schermerhorn, Hunt, & Osborn, 2008). Stress can be reduced through individual strategies such as improved...
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