A Study On Reward and Recognition
A Study On Reward and Recognition
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Reward System
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An incentive plan has following important features:-
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Determinants of Rewards
Work situation
Incentive plan
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1) Technology:
3) Feedback:-
4) Equity:-
Types of Rewards
Intrinsic rewards are the satisfactions one gets from the job
itself. These satisfactions are self- initiated rewards, such as having
pride in one’s work, having a feeling of accomplishment, or being part
of team. These techniques of job enrichment, shorter work-weeks,
flex-time and job rotation can offer intrinsic rewards by providing
interesting and challenging jobs and allowing employee greater
freedom.
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Extrinsic rewards include money, promotions and fringe benefits.
Their common thread is that they are external to the job and come
from an outside source, mainly management. Thus, if an employee
experiences feelings of achievement or personal growth from a job, we
would label such rewards as intrinsic. If the employee receives a salary
increase or write-up in the company magazine, we would label those
rewards as extrinsic.
The old saying “one man’s food is another man’s poison” applies
to entire subject of rewards, but especially to the area of non financial
rewards. What one employee views as “something I have always
wanted,” another finds superfluous. Therefore care must be taken in
providing the “right” non financial reward for each person; yet where
selection has been done assiduously, the benefits to the organization
should be impressive.
Some employees value having their lunch between one and two
o’clock in the afternoon. If lunch is normally from eleven in the
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morning until noon, the benefit of being able to take their lunch at
another, more preferred, time can be viewed as a reward. Having a
chance to work with congenial colleagues and achieving a desired work
assignment or an assignment where the worker can operate without
close supervision are all non financial rewards that are within the
discretion of management and, when carefully used, can provide
stimulus for improved performance.
Importance
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Never assume a particular reward is universally important to all
employees. Money, for example, can have a very different meaning to
different people. It may represent basic security and love, power, a
measure of one’s achievements or merely means to a comfortable life
style. To some employees 1000/- Rs –a-month raise would be very
important. Other employees, in the same job and at the same salary
level might far prefer an extra week of vacation.
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In expectancy theory terms, motivation is optimized when
employees see rewards satisfying their individual needs. Therefore a
good reward system should be designed to offer heterogeneous
rewards to a heterogeneous labour force. Employees should be
rewarded with what they individually consider important.
Equitable Distribution
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Employees desire rewards that are distributed in what seems to
be an equitable manner. This means fairness among the organization’s
employee and fairness relative to what people get for doing a similar
job in another organization. Equity theory has been proposed to
explain what happens when individuals perceive an imbalance between
what they put into job and what they get out of it relative to others’
give-and-get ratio.
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The “system” category considers organizational pay policies and
procedures and administration of this system. It considers organization
wide, implied and explicit, pay policies. Organization precedents in
terms of allocation of pay would be a major determinant in the
category.
6) Visibility
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their peers. This latter qualify means visible rewards can contribute to
satisfying an employee’s esteem and recognition needs.
Low Cost
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effectiveness as a result of its cost. All other factors equal, the lowest-
cost reward should be preferable to management.
Summary
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DESIGNING A REWARD PROGRAM
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Thornburg noted in HR Magazine, "Performance measures in a rewards
program have to be linked to an overall business strategy…. Most
reward programs use multiple measures which can include such
variables as improved financial performance along with improved
customer service, improved customer satisfaction, and reduced
defects."
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REWARD VS. RECOGNITION
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Some Rewards which are used in different organizations
4. Most Efficient Employee - middle level mgt, who does his work
without any expectation from mgt.
5. Best Loyalty - Who worked lot for co. benefit & growth as a
friend.
10. High Value Sales - huge order in single (from one co.)
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13. Best Software Support
You can also give them gifts like T-shirt with company logo
Jackets, Mementos, Movie tickets, concert tickets, certificates.
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company to another.
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paying them.
Employees also adopt this myth and use it to turn the tables
on management, arguing that any improvement in pay or working
conditions will reward management with higher productivity,
ultimately making the added rewards “free”. This is like asking Santa
Claus for presents. Seemingly no one has to pay for them.
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not the same thing as happiness, but the two obviously are closely
related).
Research methodology:-
Title of Study
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5. Motivate Employees: Motivate employees to achieve high levels
of quality performance.
Objective of study.
• Eligibility.
• Frequency
Research Design:-
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This is descriptive study including various factors of Rewards and
Recognition like criteria for rewards and recognition, eligibility, impact
on behaviors of employees, frequency for rewarding, benefits derived
and recommendation and suggestions.
Universe:-
An interview schedule was used for data collection, apart from personal
inventory.
Research period:-
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Limitations of study:-
Sample size: the present study is carried out for academic purpose, so
sample size is restricted.
Scheme of chapterisation:-
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REVIEW OF LITERATURE
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Judy L. Agnew and William K. Redmon, (1992), indicates that the
organization may have the latest technology, well -thought out
strategic plans, detailed job descriptions and comprehensive training
programmes, but unless the people are rewarded for their
performance-related behaviours, the "up-front" variable (technology,
plans and so on) or the rules that govern their behaviour have little
impact". Pay and allowances as the most important factor causing
satisfaction or dissatisfaction to workers.
Steve Williams and Fred Luthans (1992) stated that, "the choice
of reward interacting with feed back had a positive impact on task
performance".
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One example is Vodafone Australia. When Vodafone introduced
the liveyourlife reward and recognition program they had turnover
rates around 30 per cent per year. That rate has reduced to just 18 per
cent (Human Resources 2005) predominantly due to the company
focusing on its culture and its people. The liveyourlife incentive
program is a major part of the people retention initiative. By offering
experiential benefits as part of their remuneration structure, the
dynamic Managing Partner encouraged Gardens to be known as an
innovative, progressive and fun law firm.
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STAR SYSTEM
(Special Thanks and Recognition System)
The employee at Taj is viewed as an asset and real profit centre.
In March 2001 the Taj Group launched employee’s loyalty programme
called “Special Thanks and Recognition System” that is (STARS).
STARS was an initiative aimed at motivating employees to transcend
their usual duties and responsibilities and have fun during work.
The Taj group had always believed that their employees were
their greatest assets and very reason for survival of their business. In
2000 to show its commitment to and belief in employees the Taj Group
developed the “Taj people philosophy” (TPP), which covered all the
people practices of group. TPP considered every aspect employees’
organizational career planning, right from their induction into the
company till their superannuation.
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hierarchical levels. It aimed to identify, recognize and reward those
employees who excelled in their work.
It is recognition….
• For the people
• Of the people
• By the people
– Guest Compliments
– Making suggestions
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through the points they accumulated for their acts of kindness and
hospitality.
Scale
Merits are awarded as follows:
LEVELS
• M.D’s Club
• C.O.O.’s Club
• Platinum Level
• Gold Level
• Silver Level
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• ( 120 points within a single quarter)
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was so happy and surprised and write note of appreciation for the
health club attendant which added to his existing point.
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for departmentalreward, cost reduction reward, recreational reward,
and attendance reward type of schemes respectively.
The above table shows that 86.27 of respondents feel that all
employees should be eligible for reward and recognition while on the
other hand 13.73% of respondents do not feels the same.
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The above table shows that majority of respondents i.e. 52.94% of
respondents thinks that performance and output should be the criteria
for rewards and recognition, where as 19.61% of respondents feels
that cost saving should be the criteria, while 1569% of respondents
believes that quality improvement should be the criteria and 11.76% of
respondents thinks that achievements of targets should be the criteria
for rewards and recognition.
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No 31 60.78
Total 51 100
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applicable to all
Should be tangible 08 15.69
and transparent
Should be properly 07 13.73
communicated
Others 09 17.65
Total 51 100
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• Reward and recognition schemes should be implemented in such
a way that a sense of job security is inculcated among the
employees.
Diploma
Holders
Graduates
Post Graduates
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The above table deals with distribution of educational
qualification of respondents. Out of total respondents 29.41% of
respondents are diploma holders, 47.06% of respondents are
graduates and 23.53% of respondents are post –graduates.
Assistant
Manager
Deputy Manager
Manager
Deputy General
Manager
General
Managers
Chief Operating
Officer
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The above table deals with distribution of respondents as per
their designation. Out of total respondents 37.25% are assistant
mangers, 19.62% of respondents are deputy managers, 31.37% of
respondents are managers, 5.88% of respondents are deputy general
managers, 3.92% of respondents are general managers and 1.96% of
respondent is chief operating officer [COO].
TABLE SHOWING RESPONDENT WITH THEIR TOTAL WORK
EXPERIENCE WITH ASIA MOTORS WORKS
Below 1 Years
1-2 Years
2-3 Years
3-4 Years
4 Years and above
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have more than 2 year of experience but less 3 years, while 11.77% of
respondents have between 3-4 years of experience and only 3.92% of
respondents above 4 years of their total experience with AMW.
FINDINGS
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• Employees below the MMC level should be given the priority for
rewards and recognition and should be largely awarded through
monetary benefits or cash incentives.
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There are several benefits company can derive through Reward
and Recognition Schemes, some of them are as under
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• Best kaizen or best suggestion should be rewarded which can
simplify complexities of job or could help in cost reduction and
such reward should be monetary in nature.
• There should be a common programme along with separate
schemes each department wise.
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SUGGESTIONS
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7) Reward and Recognition must be reaching in all departments so
that employees can be part of it and feel important part of
organization.
CONCLUSION
Every person has different reasons for working. The reasons for
working are as individual as the person. But, we all work because we
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obtain something that we need from work. The something obtained
from work impacts morale, employee motivation, and the quality of
life. To create positive employee motivation, treat employees as if they
matter - because employees matter. These ideas will help you fulfill
what people want from work and create employee motivation.
service," she says. "It also attracts a better recruiting pool and
improves retention of the top performers."
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• Taking them to lunch.
• Providing food at volunteer meetings.
• Letting them put their names on the products they produce.
• Buying the first round of beer for "the best crew of the month."
• Writing them a letter of commendation (with copies to personnel
file and other appropriate people.)
• Getting a local radio station to mention them.
• Putting them on important task forces or committees.
• Giving the best parking space to the "employee of the month."
• Posting graphic displays, showing progress toward targets.
• Mentioning major contributors by name in your status reports to
upper management.
• Having them present their results to higher-ups.
• Giving permission to go to a seminar, convention, or professional
meeting, if possible at the organization’s expense.
• Writing articles about their performance for newsletters or
newspapers.
• Having them present a training session to co-workers.
• Decorating their work area on their birthday.
• Having your boss write them a letter of thanks.
• Celebrating major accomplishments.
• Having them represent you at important meetings.
• Putting their picture on the bulletin board with news of their
accomplishments.
• Cutting out articles and cartoons they might be interested in.
• Organizing informal chats with organization leadership.
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• Encouraging them to write an article about some
accomplishment at work.
• Giving a plaque, certificate, or trophy for being best
employee, best crew, most improved results, etc.
• Getting their picture in the paper for outstanding
accomplishment.
• Giving additional responsibilities and a new title.
• Renting newspaper space to thank them.
• Putting up a banner celebrating a major accomplishment.
• Honoring them for years of service to the organization.
• Enlisting them in training staff and other volunteers.
• Involving them in the annual planning process.
Purpose:
To reduce Attrition Rate and improve Employee Loyalty & Motivation
and positive behavior.
Objectives:
To provide guidelines to recognize specific, unique, value added and
critical performance incidents within or beyond expected & predefined
performance objectives
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To reward these performance incidents in monetary or non-monetary
terms indicating organizational recognition and appreciation towards
the employees
Scope Applicability:
All employees
General Rules:
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Benchmarking Reward-worthy
Performance/Behavior/Competence
Assessment Parameters
Some of the parameters can be listed as under.
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Reward & Award:
Cash Rewards
Certificate for Appreciation (by COO/ Head HR)
Lunch / Dinner with President
Print on the business card for one year as “EOY”.
TOY-Team of Year
Based on customer feedback on issues resolved, comfort level with
customer, Support provided or any such incidents / behaviors bringing
in significant impact on Customer’s perception and Company’s image
building etc.
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BAY- Behind the Scene Award of Year
Based on the Extra-Ordinary Performance of functional support
employees (HR, Finance, IMG and Administration functions)
RESEARCH TOOL
NOTE :
Dear sir/madam,
I am a student of 1st year MBA (Masters of Business Administration) of
AES Post Graduate Institute of Business Management (AESPGIBM)
Gujarat University, Ahmedabad.
This is a purely an academic research with the organization and the
findings won’t be put to any commercial use. I assure you that I would
ensure full confidentiality of the data provided by you. Your co
-operation and feed back would help me decipher some valid findings
for modern corporate
PERSONAL INVENTORY
Name:-
Department:-
Educational qualification:-
Designation:-
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Department:-
Number of years with AMW:-
a) Monthly
b) Quarterly
c) Half yearly
d) Yearly
e) Occasionally based on extra ordinary
accomplishments.
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4. Are all the employees should be eligible for the Reward and
Recognition?
Yes No
a) Group vote
b) Decision from top officials
c) Decision from a single manager
d) None of the Above
a) Improved performance
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b) Reduced absenteeism
c) Others
Yes No
Yes No
11. Do you feel the R&R scheme like Employee of the Month be chosen
by voting from the department?
Yes No
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THANK YOU
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