Individual&Group Reward

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CAN CHANGE OF REWARD SYSTEM ENHANCE MOTIVATION AND BEHAVIOUR IN TASK FORCE TEAM? A. Introduction It is undeniable that employees are a high valuable asset for a company. They are main resource for the company to maximise its profit. Employees have given their abilities and efforts to help the company achieve its goals. Then, it is logic that they would ask for appropriate rewards for what they have done. A problem exists when they feel that their efforts are not properly rewarded by the company. This leads to depression of employees and it is bad news for the company because this problem will be likely to contribute negatively to the company’s performance. The main purpose of having reward system is to motivate and satisfy employees in undertaking jobs. The reward system can be applied both in team level and individual level. Some companies prefer team reward system to the individual one. It depends on how the reward systems would affect employee’s performance in the workplace and also the complexity of measuring employee’s performance. However, in today’s rapid-changing business environment, it is uncommon that an organisation uses the same reward system over long period of time. As Fletcher (2005) said, it is unlikely that any appraisal scheme will be relevant to the needs and situation of the organisation for more than a few years. The statement seems to be true when Bank of Rakyat Indonesia or “BRI” (Indonesia state-owned government bank) has changed its team-based appraisal system to evaluate its Non Performing Loan (NPL) Task Force Team performance. BRI claims that this “old” reward system would strengthen the group-work and eventually would increase team outcome. Unfortunately, this pay mechanism failed to improve the performance. Instead, it decreased member’s motivation and caused members to change their behaviour against the team. Through mini investigation, I would suggest that the existing reward should be replaced by individual reward. Slowly but surely, the individual reward system has been successfully enhancing individual motivation and behaviour within the team and ultimately, increasing team performance. This report aims to see how change of reward system from group based into individual based can enhance motivation and behaviour within the NPL task force team and how well this case conforms to the motivation and performance theories. There are three main ideas for supporting this paper. First, it explains how NPL Task Force

Team is organised and evaluated. Secondly, it describes inequity situation within the team when group reward was being applied. Lastly, it illustrates how individual reward mechanism could enhance individual motivation and behaviour so that it re-balanced the situation within the team. B. How NPL Task Force Team Was Organised and Evaluated? According to Grigsby (2008), task force is a small-work group typically comprising expert in specified area of knowledge brought together to accomplish a specific objective. Bank of Rakyat Indonesia has used NPL task force team strategy to cope with its NPL problem. NPL is a performance indicator concerning how much a bank has bad assets/debts in its business portfolio. It’s very crucial because it has a big impact to bank’s profit (Appendix 1). The task force team is separated from core organisation because it needs to do the tasks independently, more focused, and more effective in achieving specific goals rather than general objectives. Each member is responsible for his/her individual work and reports their work to a project leader. Then, the detailed report will be presented by the project leader to Risk Management Team and NPL Director. Based on my experience, when I was assigned as a project leader of NPL task force group in one of BRI business unit located in Kediri (East Java of Indonesia), the team comprised 6 account officers and was targeted to reduce NPL outstanding from 3 millions dollar to 1 million dollars in six month. The...
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