Reward week 23
The organization with whom I’m familiar with is Volvo. The reward the employees in many ways in order to motivate them. There are two types of rewards that are given by Volvo, one are financial rewards and second one’s are non-financial rewards. It’s very important to reward employees who work at their best and who work efficiently and effectively at the tasks which they are given by their managers. Giving rewards to employees motivates them through which the productivity of employees’ rises. Here are some financial and non-financial reward given by Volvo to it employees.
Financial Rewards:
Piece Rates: this the term used when the pay is given according to the pieces or the level of output. Which means that the higher the pieces the higher would be the pay. But there are high chances that the quality might be compromised due to the quantity but still to avoid this Volvo has set its standards.
Commission: this is given when a certain amount of sales are met and with that the target pieces are also made for that specific period. So Commission is the extra money paid to the employees as the sales are increased.
Piece Rates: this the term used when the pay is given according to the pieces or the level of output. Which means that the higher the pieces the higher would be the pay. But there are high chances that the quality might be compromised due to the quantity but still to avoid this Volvo has set its standards.
Commission: this is given when a certain amount of sales are met and with that the target pieces are also made for that specific period. So Commission is the extra money paid to the employees as the sales are increased.
Performance related Pay: this is the pay that is totally based on the performance e.g. it is just given when the certain target is met.
Time Rate: it is usually called as overtime. Overtime pay is more than the normal pay but this is just given to employees who are active so that production and quality does not effect.
Fringe Benefits: these are usually for the high ranked employees like managers’ who get company car or house etc free from the company till they are the employee of the company.
Time Rate: it is usually called as overtime. Overtime pay is more than the normal pay but this is just given to employees who are active so that production and quality does not effect.
Fringe Benefits: these are usually for the high ranked employees like managers’ who get company car or house etc free from the company till they are the employee of the company.
Non-Financial Rewards:
Empowerment: this method involves passing down the authority to perform tasks to workers. Empowerment in Volvo goes further, by allowing workers some degree of control over how the task should be undertaken. This is also termed as delegation of powers.
Empowerment: this method involves passing down the authority to perform tasks to workers. Empowerment in Volvo goes further, by allowing workers some degree of control over how the task should be undertaken. This is also termed as delegation of powers.
Team Work: it is established fact that workers perform their duties more effectively if they were given a chance to operate in form of a group. Volvo is famous for this as it highly appreciates teamwork. They employees at Volvo work as a cohesive unit and pursue goals successfully. Moreover, this practice makes work enjoyable and less monotonous.
Job Enrichment: this is a non-financial reward given to senior and experienced employees at Volvo that allows them to work with greater independence and hold a more authoritative position in the company. Such arrangement is very helpful in making an employee more responsible and confident, and also enhances his overall motivation level.
It differs from different group as Volvo appreciates teamwork so employees are divided in different groups so the group that performs the best gets more pay due to commission and the supervisors are also paid more and receive more bonuses as they are senior than other workers and so the manager gets the most of the bonuses as he is the senior most amongst all of them. According to me this is fair because everyone is getting what they deserve and every gets for his/her hard work. I think company I quite fair with everyone as the teams which meet the targets will get the bonuses.
Chief Executive Officers (CEO) is the senior most officers of the organisation. They belong to the top management, in many cases they may also be the owners of the company. They get their own certain amount from the profits of the company, which are known as salaries plus the bonuses they get. To decide that CEOs should be given bonuses even when they underperform is difficult as every employee of the company must get a pay for the work they have done. If they are not given an incentive to work harder, their productivity and efficiency might deteriorate for the coming time as well and the company might further suffer through losses because of that. Getting pay is the right of every worker and i think CEO should get incentives may be a little so that he gets motivated and may bring new ideas to the business due to which the company might progress in the near future.
If CEOs are paid large bonuses even after the company has underperformed then it is really unfair with all the other employees as well. And the company again would never be able to succeed because of being unfair. Other employees will be demotivated due to this as they would think that their hard work is not paying of because they wont be getting bonuses if company is not earning profit.
If CEOs are paid large bonuses even after the company has underperformed then it is really unfair with all the other employees as well. And the company again would never be able to succeed because of being unfair. Other employees will be demotivated due to this as they would think that their hard work is not paying of because they wont be getting bonuses if company is not earning profit.
References:
http://www.avonconnects.co.uk/servlet/JiveServlet/showImage/38-8159-4346/rewards.png Accessed on 7 May 2011
http://www.ceridian.co.uk/hr/images/applause1.jpg Accessed on 7 May 2011
http://www.volvogroup.com/GROUP/GLOBAL/EN-GB/CAREER/Pages/career.aspx Accessed on 8 May 2011
http://www.avonconnects.co.uk/servlet/JiveServlet/showImage/38-8159-4346/rewards.png Accessed on 7 May 2011
http://www.ceridian.co.uk/hr/images/applause1.jpg Accessed on 7 May 2011
http://www.volvogroup.com/GROUP/GLOBAL/EN-GB/CAREER/Pages/career.aspx Accessed on 8 May 2011
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