...THE RELATIONSHIP BETWEEN REWARDS, RECOGNITION AND MOTIVATION AT AN INSURANCE COMPANY IN THE WESTERN CAPE by ROSHAN LEVINA ROBERTS Submitted in partial fulfilment of the requirements for the degree of MAGISTER COMMERCI in the DEPARTMENT OF INDUSTRIAL PSYCHOLOGY at the UNIVERSITY OF THE WESTERN CAPE SUPERVISOR: KARL HESLOP NOVEMBER 2005 ABSTRACT Increasingly, organisations are realising that they have to establish an equitable balance between the employee’s contribution to the organisation and the organisation’s contribution to the employee. Establishing this balance is one of the main reasons to reward and recognise employees. Organisations that follow a strategic approach to creating this balance focus on the three main components of a reward system, which includes, compensation, benefits and recognition (Deeprose, 1994). Studies that have been conducted on the topic indicates that the most common problem in organisations today is that they miss the important component of recognition, which is the low-cost, high-return ingredient to a well-balanced reward system. A key focus of recognition is to make employees feel appreciated and valued (Sarvadi, 2005). Research has proven that employees who get recognised tend to have higher self-esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative (Mason, 2001). The aim of this study is to investigate whether rewards and recognition has an impact on employee...
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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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...The Time for Employee Recognition and Rewards Programs Is Now Thesis: Employee Recognition and Rewards Programs Can Generate Significant Revenue and Profits Introduction In today’s economy, many companies are dealing with a workforce that has been – or very soon will be – reduced to core essentials. The competitive marketplace, on the other hand, cannot be put on hold until the economy improves. Attracting and retaining the very best talent is a key element to stability at any time, but it is especially so during a recession. Successful companies know that they must have the entire team fully engaged in the success of “their” company during challenging times. This is important to success not only during the recovery, but also well beyond. A lack of engagement, according to recent research, can lead to an overall reduction of 10 percent in our GNP, not to mention its effects on the corporate bottom line. Creating a climate of appreciation, where efforts are recognized and potentially rewarded, can go a long way toward strengthening the process of engagement and improving the outlook for the company as a whole. Further complicating the recession economy is the shrinking talent pool. As baby boomers retire (or hope to soon), so-called baby busters and millennials are taking over leadership roles throughout corporate America. A shortage of talented workers worldwide is inevitable in the coming years. Global recruitment will see an increase in diversity – in age, experience, language...
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...Reward and Recognition Blue Group Liz Crane Mark Glover Annice Lappin Tim Rowler Adele Vesty The Strategic Human Resource Management strategy that we will be focussing on for this presentation is ‘Reward and Recognition’. The award winning organisation that we have researched is Schweppes Australia, winner of the 2014 Australian HR award for the Best Reward and Recognition strategy, sponsored by Solterbeck. The format of our presentation will be to: 1. define the key terms, 2. present the research and literature focussing on both corporate and not for profit organisations 3. outline the award, 4. compare and contrast the award with the research of best practice of reward and recognition. 5. conclude with the benefits and limitations and alternatives of this Strategic Human Resource Management practice. Definition For the purposes of this presentation we have used the MIT Human Resources Division definition being, “The purpose of an employee recognition program is to recognize and reward work and behaviors that support/further the mission, goals, values and initiatives (of the organisation).” While Liz Prudden of San Diego State University separates this into two main categories, “The two types of reward and recognition are easily distinguishable: Monetary, receiving dollar incentives for performance and Non Monetary (NMR), various forms of "soft" recognition. Formal and Spontaneous are additional distinctions of Reward and Recognition” ...
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...retain the best employees, companies must aim to create an environment where employees feel appreciated for their contributions. Recognizing their efforts and presenting them with monetary and non-monetary rewards help companies to create a right workforce for organization that can be partner in success. Recognition of their efforts and boosting their morale results in increased productivity and decreased attrition rate. The purpose of this study is to investigate the process of reward and recognition and how effective is the process in one of the Malaysian manufacturing unit of Bemis Asia pacific which is a subsidiary of Bemis co. Inc. Bemis Co. Inc. is a multinational company in North and South America. It was founded by twenty-five year old Judson Moss Bemis in 1858 in St. Louis, Missouri. It is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, medical and pharmaceutical companies worldwide. The information was gathered through interview of employee working in Bemis Sdn Bhd. From the collection of data it was found that the company believes that recognition should be an on-going process and there is not a need for employee recognition program. Hence there is issue with reward system and there is no formal recognition program. Therefore study is concluded with some recommendations and there are some references used in the study. INTRODUCTION Background of Bemis co. Inc. Bemis Co. Inc. is a multinational company...
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...it important to reward your employees? The deepest principle of human nature is the craving of being appreciated, which is when rewards come into place. Rewards are an impressive technique for motivating good work performance. Mainly, rewards are given when any organization wants to motivate their employees or want to reduce the employee turnover rate so that the goals and objectives of the organization can be met. Rewards also come up with idea of recognizing. Varying in definition, rewards and recognition still give the same thought of motivating the employees to work for the organization. The strategic and operational goals can be met through rewards and recognition. Every organization requires a reward system so as to address compensation, benefits, recognition and appreciation. A strong employee reward program is essential for motivating the employees, creating a positive work environment and getting results. Through rewards, employees take pride in their work and in their job responsibilities, feel appreciated for the contribution, they heighten the level of commitment to the organization, improve relationship between workers. A reward is a consequence that occurs after an employee’s job performance and makes that performance happen more often. Whether a consequence functions as a reward depends on its effect. If an employee’s job performance is followed by a consequence and the job performance occurs more often, then that consequence was a reward. On the other hand...
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...budget analysts, media planners, market research, innovation, sponsorship, public relations, events coordination, etc * In this research-based paper, I will be focusing on the company’s reward system for employees and the relationship this has with motivation. Currently, the company’s award system for the marketing department is based on each brand’s trimester performance, and the awards are given to the brand managers. The awards consist of recognition and a cash prize. * According to the Organizational Culture Inventory, SABMiller’s primary culture style is self-actualizing which indicates that the company values creativity, encourages employees to develop their skills, improve themselves and enjoy their work. The secondary culture style is Achievement, which indicates that the company encourages employees to set and accomplish goals (see figure 1.1). Organizational Culture Inventory Circumplex Figure 1.1 B. PROBLEM STATEMENT * SABMiller’s high management is not practicing good leadership skills regarding teamwork, employee recognition, acknowledgment of accomplishments, and motivation. The reward system is lacking fairness regarding who gets rewarded and the merits on which it is based. This situation is having an impact on employee motivation and performance, given the fact that team members are responsible for outcomes, yet...
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...MONETARY REWARDS [pic] EMPLOYEE MONETARY REWARDS Monetary rewards are given for a variety of reasons. Some examples are meeting sales goals, achieving quality, outstanding performance in a given situation, or delivering a special project. Typical rewards are money in a form of a bonus, trips paid for by the company, gifts from a rewards catalog, or services such as cell phone or paid cable. TYPES OF REWARDS Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards is to select items that will spark the participant’s interest or feelings, and support the program’s objectives. Effective rewards will both motivate short-term behavior and provide motivation over time. VARIABLE PAY Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these. It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn Tully in Fortune , "The test of a good pay-for-performance plan is simple: It must motivate managers to produce earnings growth that far exceeds the extra cost of [the program]. Though employees...
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...Introduction Rewards, Motivation and Job Satisfaction are important and significant variables to the organization success as it is an employee’s attitude towards their job. The higher the job satisfaction, the more the employees will hold a positive attitude towards their jobs. Similarly, the organization will have low turnover rate and better in talent retention. (Sarwar & Abugre, 2013) Therefore, an organization’s strategy is linked to job satisfaction of the employees as it has direct impact on productivity and profitability. (Khalid, et al., 2011) In many organizations, employee turnover is a major issue because of the cost involved with new hiring and training. The purpose of this study is to find out the relationship between job satisfaction and employees performance in Gas Pte Ltd. (Sarwar & Abugre, 2013) Chapter 2 – Literature Review In the past, the organizations provide a permanent guarantee for the job and employees will in return give the organizations their loyalty and their best performance. However, this is a dream now which show that the job satisfaction in the organization has changed over the years. Employees are more educated and highly trained in skill. They are able to perform their duties based on their capabilities to achieve the goals of the organization. As a result now, organizations should recognize what are the needs to motivate their employees to deliver their best to the organizations. (Zaidi & Abbas, 2011) 2.1 Rewards In today’s...
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...Introduction Rewards, Motivation and Job Satisfaction are important and significant variables to the organization success as it is an employee’s attitude towards their job. The higher the job satisfaction, the more the employees will hold a positive attitude towards their jobs. Similarly, the organization will have low turnover rate and better in talent retention. (Sarwar & Abugre, 2013) Therefore, an organization’s strategy is linked to job satisfaction of the employees as it has direct impact on productivity and profitability. (Khalid, et al., 2011) In many organizations, employee turnover is a major issue because of the cost involved with new hiring and training. The purpose of this study is to find out the relationship between job satisfaction and employees performance in Gas Pte Ltd. (Sarwar & Abugre, 2013) Chapter 2 – Literature Review In the past, the organizations provide a permanent guarantee for the job and employees will in return give the organizations their loyalty and their best performance. However, this is a dream now which show that the job satisfaction in the organization has changed over the years. Employees are more educated and highly trained in skill. They are able to perform their duties based on their capabilities to achieve the goals of the organization. As a result now, organizations should recognize what are the needs to motivate their employees to deliver their best to the organizations. (Zaidi & Abbas, 2011) 2.1 Rewards In today’s...
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...provides a list of reward and recognition options for team leaders to consider. Successful use of reward and recognition in the work place will help team leaders to ensure that team members feel supported, valued and enjoy job satisfaction. When used appropriately in an environment of trust, recognition and reward supports the development and enhancement of: ( Productive work cultures ( Commitment ( Attraction and retention of outstanding staff ( Career and professional development ( Positive and constructive work environments ( Ongoing learning ( Collaboration ( Employee satisfaction How to recognise and reward team members To be effective, the process of providing recognition and reward should adhere to the following principles: ( It should always be genuine and sincere – that is, you must believe it is worth giving ( It should not be used in a manipulative or inequitable way ( It should reward and recognize achievements that further the collective cause of the team and is linked to this common vision as well as individual success ( It should be linked to the leadership principles of having high expectations of others and having a credible record of achievement oneself ( Recognition of self-evaluation and of learning from mistakes is as important as recognition of achievement ( Recognition should be an everyday informal activity, as well as a ceremonial one ( Recognition and reward shouldn’t be ‘overdone’ Types of recognition and reward General types...
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...Pay for Performance Case Meredith Viera 22 August 2010 Job Evaluation Case 1. The new Utley management would like to establish a pay-for-performance system. What does this mean to the Utley management Pay for performance system is designed to reward employees that meet and exceed performance objectives and exhibit behaviors that are aligned with company’s goal. Utley management must determine what does the organization values, which type of individual employee contribution should be rewarded, their ability to pay, administer and willingness to communicate a merit pay plan before it is created. Management must also establish some performance standards as the basis of measurement of employee’s contribution against organization’s goals and objectives. In order to establish a reliable, fair and valid pay for performance system, Utley management must make sure that employee’s performance objectives are aligned with the organizational goals (WorldatWork, pg.312). 2. What changes will have to be made in the way the system operates now? The actual pay for performance system is not working because the process has several flaws. The system is not reliable and it does not capture the necessary information needed to perform a more accurate evaluation of employee’s contribution towards organizational goals. For instance, the use of a single question in a performance assessment cannot capture all the elements that...
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...of expectant theory; expectancy, performance and valance. The base component of the theory, expectancy behavior, is built by process that an individual undergoes to make choices. This theory is used by leadership and managers to understand how individuals are motivated and how they will respond to rewards closely tied to the task given. This is proposal is understood to be an individual’s understanding of how their efforts lead to a given performance level. Identified in the theory is the belief that more effort put into a task or objective leads to better performance. Therefore, effort leads to performance or (EP). This is closely tied to the individual’s belief that they can perform a given task (self-efficacy), whether they believe the task is obtainable, and the individual can control the goal or performance. The theory highlights the need for the organization to relate rewards directly to performance and ensure the rewards provided are deserved and wanted by the individuals. If the result of a strong effort is a good or exceptional performance the result of a good performance should be the given outcome, (P O). The outcome should be a reward tied closely to the task and performance. A reward that is tied significantly to the performance will motivate the effort to accomplish that task and individuals efforts. Another key component of the theory is valence. This refers to how much value the individual places on the reward. V [R]. The reward should be tied to the outcome, with...
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...| | |BM 0210 | | | |Reward Management | |By Rebecca Ambler | BMO 0210 – CIPD Reward Management This assignment will critically evaluate reward philosophy, strategy and policy in Genix Healthcare Ltd. The Key economic, psychological and motivational theories that influence reward policies and practices will be identified as should the factors that influence employee satisfaction with our rewards and the reward system such as equity, fairness, consistency and transparency. Overview of Company Genix Healthcare is the UK’s fifth largest dental corporate company, founded in 2005 Genix was set up to address the shortage of NHS dentists in the UK by providing easy access to affordable dental care. In 2006, Genix Healthcare bought its first dental clinic in Garforth, Leeds. To support the local community Genix became the main sponsors of Garforth Town Football Club...
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...Rewards System Proposal Name: Felecia Simmons Professor John Muehl Total Rewards Date: February 12, 2012 Introduction Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry. Total Rewards Concept The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination...
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