Recognizing Employee Contributions
HRM500, Strayer University
Dr. Jeffrey Weaver
Recognizing Employee Contributions
Employees deserve recognition for their hard work, creative ideas and commitment to the company. “Employee recognition is the timely, informal or formal acknowledgement of a person’s or teams behavior, effort or business result that supports the organization’s goals and values, and which has clearly been beyond normal expectations” (Wiley & Kowske, 2012). It is important to show employees your appreciation for their work so they can understand how they are valued by the company. The effect of this action helps to increase employee satisfaction and productivity. Rewarding employees for their dedication and work, shows that you care about them and not just what they can do for you. Propose two methods an HR professional could use to determine incentive pay. Specify the principal manner in which the proposed methods take into consideration individual, group, and company performance. Justify your response.
The main goal of employee incentives is to motivate employees to achieve their highest performance possible. Human Resources must first determine the needs of the employees. Once those needs have been assess, then they must decide on an incentive plan that focuses on those particular needs. “Incentive plans must showcase what the potential may be if the purpose is fulfilled” (Kishore & Rao, 2013). For this particular company one method that could be used to determine incentive pay is by basing it on individual’s performance. First you would identify who your top performers may be. Human Resources should communicate with them and inform them of the incentive plan for performance bonuses based on sales for the quarter. Even though this is an individual based performance plan it can also be applied to groups within the organization. For example, the internet sales team of the company would participate in a different form of performance bonuses based on the teams internet sales achieved. For individuals, it motivates them to self-satisfying goals set by the company and shows them that they assets. For groups, it can help to encourage and motivate teamwork. In regards to the company’s performance, this plan enforces an increase in the profits of the business.
Another option available is to pay individuals based on group performances. Due to the fact that efficiency is an important aspect of this position I believe that the company should promote gainsharing. “Group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees” (Kelly, 2010). This method takes into consideration the individual because helps them to look at themselves and how to improve not only their performance but the group’s performance as well. This will also encourage employees to align their activities to match the organizations goals. Examine the core legal requirements affecting employee benefits in today’s competitive environment. Determine the legally mandated benefits that the company must currently offer its employees.
“Human Resources management must comply with all employment, health and safety and other relevant legislation applicable to the jurisdiction where the organization operates” (Matkin, 2010). Companies must administer these required benefits to employees that are mandated by law. When business decide to structure the organization in regards to benefits, it is important to be aware of current laws that may limit some of these choices. A few of the legal requirements that have an effect on benefits includes tax treatment of benefits, antidiscrimination laws, and account requirements of benefits. The tax treatment of benefits involves determining what benefits are taxable and which ones aren’t. Certain benefits like health insurance or retirement plans receive a tax deduction but...
References: Kelly, K. (2010). The Effects of Incentives on Information Exchange and Decision Quality in Groups. Behavioral Research In Accounting, 22(1), 43-65. doi:10.2308/bria.2010.22.1.43
Kishore, S., Rao, R. S., Narasimhan, O., & John, G. (2013). Bonuses Versus Commissions: A Field Study. Journal Of Marketing Research (JMR), 50(3), 317-333. doi:10.1509/jmr.11.0485
Kupritz, V. W., & Cowell, E. (2011). Productive Management Communication. Journal Of Business Communication, 48(1), 54-82. doi:10.1177/0021943610385656
Matkin, D. T. (2010). Designing Accountable and Effective Economic Development Tax Incentives. Public Performance & Management Review, 34(2), 166-188. doi:10.2753/PMR1530-9576340202
Wiley, J., & Kowske, B. (2012). Book highlight-The power of recognition. Global Business & Organizational Excellence, 32(1), 75-84. doi:10.1002/joe.21465
Yanadori, Y., & Cui, V. (2013). Creating incentives for innovation? The relationship between pay dispersion in R&D groups and firm innovation performance. Strategic Management Journal, 34(12), 1502-1511. doi:10.1002/smj.2071
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