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    Performance Based Rewards

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    Aqib Fida
    Performance-based rewards are incentives employees receive based on their contributions rather than tenure. They can include stock options, bonuses, and salary increases. There are two main types: incentives, which are fixed payments made regularly, and bonuses, which are lump sums paid in addition to base salary. McDonald's in Australia faces challenges implementing rewards due to limited resources and a focus on low costs. It uses both intrinsic and extrinsic rewards, which positively impact employee performance and business results.

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    Performance Based Rewards

    Uploaded by

    Aqib Fida
    2K views2 pages
    Performance-based rewards are incentives employees receive based on their contributions rather than tenure. They can include stock options, bonuses, and salary increases. There are two main types: incentives, which are fixed payments made regularly, and bonuses, which are lump sums paid in addition to base salary. McDonald's in Australia faces challenges implementing rewards due to limited resources and a focus on low costs. It uses both intrinsic and extrinsic rewards, which positively impact employee performance and business results.

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    Performance-based rewards are incentives employees receive based on their contributions rather than tenure. They can include stock options, bonuses, and salary increases. There are two main types: incentives, which are fixed payments made regularly, and bonuses, which are lump sums paid in addition to base salary. McDonald's in Australia faces challenges implementing rewards due to limited resources and a focus on low costs. It uses both intrinsic and extrinsic rewards, which positively impact employee performance and business results.

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    Download as docx, pdf, or txt
    2K views2 pages

    Performance Based Rewards

    Uploaded by

    Aqib Fida
    Performance-based rewards are incentives employees receive based on their contributions rather than tenure. They can include stock options, bonuses, and salary increases. There are two main types: incentives, which are fixed payments made regularly, and bonuses, which are lump sums paid in addition to base salary. McDonald's in Australia faces challenges implementing rewards due to limited resources and a focus on low costs. It uses both intrinsic and extrinsic rewards, which positively impact employee performance and business results.

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    Performance based rewards:

    Performance-based rewards are an incentive that employees receive based on their work-related
    contributions to the company rather than their time with the company. Performance-based
    rewards can take many forms, including stock options, bonuses, and salary increases.

    Types of performance based rewards

    There are two main types of performance-based rewards: 

     Incentives: These are usually a fixed amount of money paid out at regular intervals,
    typically monthly. Incentives are often used as part of a basic salary package but can also
    be offered as an element in a total reward package. They may be tied to goals or other
    performance measures. 
     Bonuses: These are lump sums paid in addition to base salary or wages. They generally
    have more flexibility than incentives because they don't have to be linked to specific
    goals or metrics.

    Reward and Incentive Systems:

    Human resource management is an indispensable aspect of business management, and an


    organisation will incur a boost in productivity and efficiency if it can bring into line its human
    resource management strategy, business strategy and the overall corporate level strategy (Schuler
    & Jackson, 2014). Nonetheless, there is no one-size-fits-all key to success in terms of prescribing
    the right scheme for the practice of people management; in fact, different companies design their
    own policies, and even within the same company, each department can implement its own
    technique (Schuler & Jackson, 1987). To be more specific, companies can utilize different
    methods to monitor and manage the performance of employees in different positions and from
    different educational and racial backgrounds. Among different methods to motivate employees
    and enhance business competence, business managers to achieve their corporate goals of raising
    the company’s profits often utilize reward and incentive systems.
    McDonalds uses incentives reward base system:

    McDonald's in Australia faces challenges in implementing its reward and incentive system due to
    limited financial resources and its business strategy of cost-effective leadership, aiming to lower
    its operating costs to remain competitive. This essay starts by providing an overview of the fast
    food industry and McDonald's in Australia. A literature review of the use of financial and non-
    financial rewards and the relationship between reward, motivation, and business outcome
    follows.

    McDonald's’ current reward and incentive strategy is then discussed and evaluated. It is argued
    that the rewards and incentives system, both intrinsic and extrinsic has positive impacts on
    employees’ performance and business results for businesses in general and McDonald's in
    particular. Nonetheless, other human resource practices are also beneficial for the company.

    Overview of McDonald's in Australia:

    With the change in Australian people’s lifestyles, particularly dining habits, and new job
    requirements, the fast food industry in Australia has expanded rapidly since the end of the 20th
    century (Lyons, 1999). Beliefs and perceptions regarding the consumption and health risks of
    fast food have also been altered (Dunn, Mohr, Wilson, & Wittert, 2008). The fast food industry,
    which serves foods such as burgers, pizza, sandwiches, salads, juices, desserts, and
    confectionery, is characterized by a low level of capital, and labor costs constitute the majority of
    daily operating costs. According to a report by IBIS World, this industry’s revenue is forecast to
    achieve an annualized growth rate of 3.9% over the five years through 2016-17, to reach $19.3
    billion (Fast Food Services in Australia, 2017).

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