PRESENTED BYSHARMEEN KHAN
AROOJ PASHA ABDULLAH MOHAMMAD
PERFORMANCE BASED AWARD
SYSTEM
"Winners must have two things; definite goals and a burning desire to achieve
them.".
INTRODUCTION Reward management is a popular
management topic. It was developed on the basis of
psychologists' behavioral research. Psychologists started studying behavior
in the early 1900s One of the first psychologists to study
behavior was Sigmund Freud and his work was called the Psychoanalytic Theory
MBAO 6030 Human Resource Management
THE REWARD SYSTEM IS A KEY DRIVER OF:
HR Strategy Business Strategy
Organization Culture
MOTIVATION AND REWARD SYSTEMS
Motivation - Three Dimensions:
Intensity
Persistence
Direction
MOTIVATION AND REWARD SYSTEMS INTRINSIC VS. EXTRINSIC MOTIVATION
Intrinsically Motivated When doing the job is inherently
rewarding Extrinsically Motivated
When rewards such as pay and formal recognition act as motivators
Specific
Relevant
ChallengingTaskEffort
TaskPerformance
EFFECTIVE GOAL SETTING
Challenging
Participation
Commitment
Area ofOptimal
GoalDifficulty
High
Task
Per
form
ance
Low Moderate Challenging Impossible
EFFECT OF GOAL DIFFICULTY ON PERFORMANCE
Goal Difficulty
WHY REWARD THEM?????
OBJECTIVES OF REWARDS SYSTEMS Support the organization's strategy Recruit & retain Motivate employees Strengthen psychological contract Financially sustainability
THE REWARD PROCESS
Motivation to exert effort
Performance:Individual
Experience
Ability & Skill
PerformanceEvaluation Satisfaction
ExtrinsicRewards
IntrinsicRewards
Feedback
REWARDS AND SATISFACTION An individual’s feelings of satisfaction are
influenced by comparisons of what happens to others.
Satisfaction is influenced by how satisfied employees are with both intrinsic and extrinsic rewards.
People differ in the reward they desire and in the relative importance different rewards have for them
Some extrinsic rewards are satisfying because they lead to other rewards.
Rewards must be valued and must be related to a specific level of job performance
GENERAL MODEL OF ORGANIZATIONAL REWARD SYSTEMS
Organization’s Reward Norms• Profit maximization• Equity• Equality• Need
Distribution Criteria• Results• Behavior• Other factors
Types of Rewards• Financial/material(extrinsic)• Social (extrinsic)• Psychic (intrinsic)
Desired Outcomes • Attract• Motivate• Develop• Satisfy• Retain
TYPES OF REWARDS Extrinsic rewards Concrete rewards that employee
receive. Bonuses Salary raise Gifts Promotion Other kinds of tangible rewards
INTRINSIC REWARDS: Tend to give personal satisfaction to
individual
Information / feedback Recognition Trust Relationship Empowerment Monogrammed name plaque
EMPLOYEE AND THE REWARD The reward also needs to be according
to the employee’s personality. For instance, a sports fan will be really
happy to get some tickets for the next big match.
However a mother who passes all her time with her children, may not use them and therefore they will be wasted.
REWARDS AS INDIVISUALS TEAM AND ORAGANZATION
Individual Base pay, incentives, benefits Rewards attendance, performance,
competence Team team bonus, rewards group
cooperation Organization profit-sharing, shares, gain-sharing
(EQUITY THEORY)
Satisfaction with a reward is a function of both how much is received and how much the individual feels should be received.
JOB EVALUATION Job evaluation is closely related to reward
management. It is important to understand and identify a
job's order of importance. Job evaluation is the process which job's are
systematically assessed to one another within an organization
in order to define the worth and value of the job, to ensure the principle of equal pay for equal work
METHODS OF JOB EVALUATON
ranking
classification
factor comparison
PERFORMANCE APPRAISAL
Each employee is different and can bring in something special to the organisation.
Each employee has a specific job to fulfil.
Performance appraisals are needed in order to understand how every employee can produce the best performance.
IMPROVE PERFORMANCE performance improvement is the
notion of measuring the productivity of a certain procedure
finding solutions in order for the productivity to rise
the capability of the employees and their effectiveness.
INCREASE MOTIVATION Performance appraisal is used as a
motivation tool. An employee's efficiency can be
proven if the targets he was set, have been achieved.
The employee will be motivated to do even better and his performance will rise in the near future
IDENTIFY TRAINING/DEVELOPMENT NEEDS establishing the organizational needs
for the employees at this time and in the near future.
A few questions may be asked in the process: What can an employee learn in order to be more productive? In which field is training most necessary? And finally who should benefit from the training most?
THANK YOU
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