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