Rewards

Reward is a system to uphold and strengthen wanted performance, such as wage rate that upsurges with the output of the employee..

At my current workplace which is in Censura Consulting, only sales department gets rewards by getting bonuses and if we reached over our targets or even just on the spot , then we get 4% of the sales. Not only this, we also get a basic present from the manager if we constantly go on to reaching our target, we sometimes gets what we want like free lunch. However, it varies from different department as our department are more vocal to speaking to our manager about rewards. In addition to this, our job is easier to reach the target other than the other department. Fairness is assured as the management and we have a record of our individual sales where we can see if we are above or below the target sales. We can also calculate how much bonuses are we meant to be getting as they have explained the procedure of how to calculate the bonuses.

I think ,at present, my workplace do not have a stable reward system for the company to expand . Also, I noticed that most employees often are unhappy with the way the company is managed and most of their reasons for resignation is their wages. I believe, by changing this and improving their reward system, employees are more motivated into working harder and gaining excellent sales. As the management needs to keep in mind that employee satisfaction is also essential, as they are the aid in reaching the company’s aims and objectives.

In my opinion, I believe Chief executives should not receive their rewards if they have underperformed and resulted for the company to not do so well and lose out with potential profits. Here are the arguments for and against regarding giving rewards to chief executives:

Arguments for:

·         The chief executives are still doing their job. They are the ones who go in every day doing the hardest job, stressing out, and responsible for everything when something goes wrong so they still deserve the large bonuses.

·         If not, this will discourage the chief executives to work at a better rate and better pace and will lead into more underperformance.

·         If something bad happens to the company, they are the only ones who can turn things around because they know the company way better than anyone else as they are they know how to manage the company more than anyone else.

Arguments against:

·         It can lead into unemployment because employees might leave since large bonuses were taken off by paying it all out to the chief executives.

·         They have underperformed therefore they should not need to be getting large bonus; maybe the company should give them lesser bonuses than they usually get.

·         Bonuses will be led to waste if their performance will not improve. The money given for bonuses can be used for better things i.e. better facilities, tools and equipment, etc.

·         It will encourage the chief executive to work harder if they want their large bonuses back. This will motivate them to concentrate harder and perform well in order to get their bonuses.

·         They might continue to be doing the same mistake every month and the same performance will be made, this will lead the company to its downfall and bankrupt.

In conclusion, reward programs have their position in all business. Business owners must initially verify anticipated employee actions, abilities, and achievements that will uphold their business objectives. Through rewarding and identifying exceptional performance, entrepreneurs will have an advantage in a competitive corporate climate. Likewise, it is wise for the organisation to keep in mind the fairness for each employee regarding rewards to avoid conflicts yet to improve performance.

References:

Mullins, L. ( 2010) Management & Organisational Behaviour : ninth edition. London: Person Education Limited.

Holbeche,L.(2009)Aligning Human resources and Business strategy. Great Britain:Elsevier Ltd.

Armstrtong,M.(2002)Employee Award:third edition. Great Britain: Cromwell Press.

Kerr,J., Slocum,J. (1987) Managing Corporate Culture Through Reward Systems [online].1 (99). Available from: http://www.jstor.org/pss/4164733 [ Accessed on 21 April 2011]