* DESIGNING A REWARD PROGRAM
The key characteristics of developing a reward program are as follows: Identification of company or group goals that the reward program will support. Identification of the desired employee performance or behaviors that will reinforce the company’s goals. Determination of key measurements of the performance or behavior, based on the individual or groups previous achievements. Determination of appropriate rewards.
Communication of program to employees.
Reward systems are concerned with two major issues: performance and rewards. Performance includes defining and evaluating performance and providing employees with feedback. Rewards include bonus, salary increases, promotions, stock awards, and perquisites. * Large corporations with several different businesses may have multiple reward systems. And while they may share some fundamental philosophies and values, they may differ according to the particular business setting, competitive situation, and product life cycle. Thus, multiple reward systems can support multiple cultures within one organization. * These components will be designed, developed and maintained on the basis of reward strategies and policies which are created within the context of the organizations between strategies, culture and environment: 1. Improve Organizational Effectiveness: Support the attainment of the organizations mission, strategies, and help to achieve sustainable, competitive advantage. 2. Support and Change Culture: Under pin and as necessary help to change the organizational culture as expressed through its values for performance innovation, risks taking, quality, flexibility and team working. 3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process. 4. Manageable: It helps to manage the undue administrative burdens imposed on managers and members of the personal department. 5. Motivate Employees: Motivate employees to achieve high levels of quality performance. 6. Increased Commitment: Enhance the commitment of employees to the organization that will: a) Want to remain members of it,
b) Develop a strong belief in and acceptance of the values and goals of the organization; and c) Be ready and willing to exert considerable effort on its behalf. 7. Fairness and Equity: Reward assesses people fairly and consistently according to their contribution and values to the organization. 8. Improved Skills: The employees can upgrade competence and encourage personal development. 9. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service. 10. Develop team working: An effective award system improves co-operation and effective team working at all level. * PERFORMANCE MANGEMENT, REWARDS AND AWARDS
Performance management is the systematic process by which an organization involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Employee performance management includes: Planning work and setting expectations,
Continually monitor performance,
Developing the capacity to perform,
Periodically rating performance in a summarized fashion, and Rewarding good performance.
Performance appraisals and rewards are designed to show recognition to employees. Those who exemplify outstanding abilities in the workplace are celebrated through an appraisal and reward system. Managers may offer employee praise in a one-on-one setting, such as a performance evaluation, or in a group setting among peers. Archer North, a company that designs and develops employee performance appraisal and corporate evaluation systems, says that social recognition is powerful and is an effective forum for showing value in employees. Employee recognition...