Rewards Management (Green) Flashcards
Reward Management is concerned with the (1)_____ and (2)_____ of (3)_____ and (4)_____ that aim to (5)_____, (6)_____ and (7)_____ in accordance with their (8)_____ to the organization.
- formation
- implementation
- strategies
- policies
- reward people fairly
- equitably
- consistently
- value
Reward Management is concerned with the (1)_____, (2)_____ and (3)_____ required to ensure that the (4)_____ and (5)_____ to achieve organizational, departmental and team goals is recognized and rewarded.
- strategies
- policies
- processes
- value of people
- the contribution they make
Extrinsic rewards
Pay
Fringe benefits
Job security
Good working environment
Supportive supervision
Status, promotion
Recognition, praise
Intrinsic rewards
Achievement
Involvement
Independency
Participation
Self-responsibility
Facing challenges
Self development
Work itself
Total Rewards
Compensation
Benefits
Performance and Talent Management
Compensation
Base Plan
Variable Pay
Base Plan
Wages
Salaries
Variable Pay
Bonuses
Incentives
Stock Options
Benefits
Health/medical insurance
Life/disability insurance
Paid time off
Retirement/pension plans
Educational assistance
Work-life support
Performance Measurement
Performance review
Goal setting
Talent Management
Training
HR Development
Career Planning
Succession Planning
Is an incentive plan to reinforce the desirable behavior of workers or employees and in return for their service to the organization.
Reward
(1)_____ and (2)_____ system plays vital role in a business organization.
- Compensation
- Reward
Aim of Reward Management
Reward employees according to what the organization values and wants to pay for.
Reward employees for the value they create.
Reward the right things to convey the right message about what is important in terms of behaviors and outcomes.
Develop a performance culture.
Motivate employees and obtain their commitment and engagement.
Employees feel that they are treated justly in accordance with what is due to them because of their value to the organization.
Operate fairly
Decisions on pay do nit vary arbitrarily and without due cause between different people or at different times.
Function consistently
Employees understand how reward processes operate and how they are affected by them.
Operate transparently
Purpose of reward system
It is the way by which companies can encourage employees to work harder and increase their effort while doing their job.
Some of the organizational aims are motivation, development of high performance and rewarding the right behavior.
The promise of a bonus or a pay rise is intended to encourage employees to motivate themselves to reap the rewards.
Employees will increase their effort while doing their job, will create high performance that will result in having a high percentage of productivity.
Companies can show the message they try send to the employees. Rewarding an employee for a behavior he/she has done is a way to show other employees what is asked from them to do in terms of behavior or performance.
Rewards can be used to send a message showing the outcomes that the company is expecting from its employees.
Competitive hiring and reducing attrition rate.
Classification of rewards
Intrinsic rewards
Extrinsic rewards
Financial rewards
Non-financial
Performance based
Membership based
Classification of rewards:
The satisfaction one gets from the job itself. These include pride in one’s work, feeling of accomplishment, being part of team job enrichment, shorter work-weeks, job rotation etc.
Intrinsic rewards
Classification of rewards:
Includes money, promotions and fringe benefits or a write up in the company magazine.
Extrinsic rewards
Classification of rewards:
Direct-through wages, bonuses, profit sharing etc., or indirect-through supportive benefits like pension schemes, leave encashment, purchase discounts etc.
Financial rewards
Classification of rewards:
Incentives make life on the job as more attractive like standard and well facilitated workplace, attractive position, responsibility of choice, work autonomy, job security etc.
Non-financial
Classification of rewards:
Rewards may be a piece rate pay plans, commissions etc.
Performance based
Classification of rewards:
Rewards may be profit sharing, increase in dearness allowances, seniority based or time bound promotions etc.
Membership based
Qualities of a good reward system
Performance based
Transparent and predictive
Cost effective
Need based
Unbiased
Competitive
Qualities of a good reward system:
Better performer must receive better reward than the average and poor performer.
Performance based
Qualities of a good reward system:
Employees must be familiar with the reward system and the reward must be distributed transparently.
Transparent and predictive
Qualities of a good reward system:
Employees should be able to calculate and predict their reward in an advance.
Transparent and predictive
Qualities of a good reward system:
Employees become enthusiastic and motivated if they are aware about the type, size and quality of reward.
Transparent and predictive
Qualities of a good reward system:
Reward must have the quality of balancing the cost benefit ratio. The reward received by the employees should not exceed the benefit received by the organization.
Cost effective
Qualities of a good reward system:
The reward system must match with the need or requirement of the employees.
Need based
Qualities of a good reward system:
If reward system doesn’t meet the need of the employees, it will not motivate the employees to perform better in the future.
Need based
Qualities of a good reward system:
Reward must be _____ and fair. Employees identical to their job performance should be rewarded equally.
Unbiased
Qualities of a good reward system:
Reward system must be _____ to other organization’s provision.
Competitive
Qualities of a good reward system:
Good reward system will attract and retain the competent employees.
Competitive
Determinants of reward
Performance
Efforts
Seniority
Skill held
Job difficulty
Punctuality
Adhering to rules and guidelines
Market competition
Methods of reward evaluation
Merit rating
Essay Type Merit Rating
Forced choice method
Graphic rating plan
Methods of reward evaluation:
Can be defined as a systematic evaluation of an employee’s performance on the job in terms of requirements of the job.
Merit rating
Methods of reward evaluation:
The _____ enables the manager to differentiate among his subordinates through systematic approach for the purpose of their recommendation for promotion, wage increase or of special training etc.
Merit rating
Methods of reward evaluation:
Generally this type of merit rating is used for the persons of supervisory cadre. In this, the in charge writes an essay on his subordinates.
Essay Type Merit Rating
Methods of reward evaluation:
Characteristics are printed on a sheet of paper and the in charge is asked to tick them. The marks for the rating can be given on the basis of these characteristics.
Forced choice method
Methods of reward evaluation:
In this system, points in numerical values are given for various characteristics. The total of these points in them is used to compare the workers.
Graphic rating plan
Motivating different generations
Baby Boomers (Born: 1946-1964)
Generation X (Born: 1965-1980)
Generation Y - Millennials (Born: 1980-1995)
Generation Z (Born: 1996 Onwards)
Motivating different generations:
Are most commonly motivated by things other than just financial incentives, with popular motivators being:
Opportunities for professional development
Positions of authority
Recognition for achievements
Workplace benefits
Baby Boomers (Born: 1946-1964)
Motivating different generations:
_____ employees are most commonly motivated by things which offer them a good home/work balance including:
Family-based benefits
Lifestyle benefits
Corporate wellbeing
Recognition of achievement
Professional development opportunities
Generation X (Born: 1965-1980)
Motivating different generations:
_____ employees are most commonly motivated by things which are a little more on the creative technological side than other generations including:
Money
Opportunities to learn new technologies
An enjoyable workplace environment
Short, changeable and fast tasks
Opportunities to express creativity and opinions
Generation Y - Millennials (Born: 1980-1995)
Motivating different generations:
_____ employees are most commonly motivated by having their voice heard, equality and other motivators including:
Respect
Out of work socialization
Money saving schemes
Experience days
Mentoring platforms
Generation Z (Born: 1996 Onwards)
Effectiveness
Worth
Loyalty
Longevity
Quality
Effectiveness:
Creates an increased sense of worth and improved morale in the workplace.
Worth
Effectiveness:
Colleagues see that exceptional performance is appreciated by upper management and may step up their own productivity levels with the understanding that their work could be noticed as well.
Worth
Effectiveness:
When employees are treated like family, they’re far less likely to betray the company for personal gain.
Loyalty
Effectiveness:
This reduces the likelihood of issues like office theft, the release of proprietary information and instances of fudging time sheets and expense reports.
Loyalty
Effectiveness:
Employees are more likely to talk positively about their company in the community thus enhancing the business’ reputation.
Loyalty
Effectiveness:
When employees feel valued and appreciated and see they have room for advancement, they are less likely to look for other employment, even if the salary is higher.
Longevity
Effectiveness:
A company that has seasoned, long-term professionals on staff reduces the costs of continually hiring and training new employees.
Longevity
Effectiveness:
Recognizing employees for innovative ideas and concepts can lead to increased _____ of a company’s products and services.
Quality
Effectiveness:
Employees who feel their ideas are welcomed and credit is given where it is due may reject complacency and continually strive to perform at top levels.
Quality
