Develop a culture for the year 1980 in the field of business in the U.S. and abroad with a strong focus on personal reward on the basis that highly motivated individuals could transform organizations and communities. Was a blatant example of Gordon Gecko in the movie Wall Street, noting that greed is good. Clash of the 90 companies, however, saw the collapse of the inappropriate use of reward as an incentive. So far was built on the success of large companies reward systems based on reward. Phones4U recently and Allied Dunbar in the financial services market is an example earlier.
Barings Bank was notorious individual operators on bonuses in the millions so far on the long-term motivations of these individuals, non-achievement of company objectives. Furthermore, even when the reward system is based on individual performance indicators is entirely appropriate, leading to the success of the organization and he or she is rewarded, there may be problems caused by large difference between the salaries of senior officials and those of middle managers. The payment system may be reduced or demotivates 10 people each and every one that stimulates not be the best for the organization.
Wisdom that organizations seek to reward and motivate staff so that all staff are able to work actively to promote the interests of the institution both in the short term and long term and feel they were treated fairly. But it must be established to link the elements that are rewarded and the actions they can take to affect the desired result.
Organization wise to accept the following:
• It is reasonable for a particular director, to act in its own interests.
• Managers to work for the people do not want organizations and please his superiors closest to them, or if not possible, a group of colleagues.
• Managers want to achieve, and will move to these tasks they know they can not succeed, for the short term, usually at the expense of long-term.
The implication is clear that the organization must establish a baseline before relying on wage structure to change the behavior and performance. In other words, must be a system of management and administration to be balanced with the wage system.
There are five main prerequisites for the installation of an effective reward structure.
1. Analogy: "If you do not measure you will not get it." There are different systems of measurement of the Balanced Scorecard, which determines the multiple objectives and is used by Tesco, and probably the best known.
2. Monitor: If you are not monitoring the performance measures properly or monitored only during the examination at the end of the year, it can give signals manager they did not really matter, or worse yet, that failure is acceptable to provide all managers fail together.
3. The control of tools for this task: the organization must ensure that the individual is nothing more than to depend on factors beyond its control to achieve the performance measures set out (this is part of the "how" of the equation).
4. Consistency: to ensure that short-term organizational factors do not overestimate the influence of managers or expel them from their real purpose. Organization must also ensure that its own design (whether bureaucratic or loose) is appropriate to what is required of managers.
5. Reward and online strategy: the institution to achieve a clear strategy is not an event to be held in the future, but rather a journey. And the compensation system can be put to an organization, even if a relatively muddled strategy provided that disputes are resolved organization and management with reference to the strategy, and the "Balanced Scorecard". Only then there will be pressure on the organization to improve its strategy, structure and reward systems.
Based on these conditions before 5, and there is a list of 10 factors that reward efficient and reward structure must meet the following objectives:
1. Support the business strategy
2. Encourage the desired behavior
3. Performance-related bonus
4. To be fair
5. Be significant
6. Be an effective tax
7. Be in time (the reward should be close to the investigation)
8. Include non-financial rewards (recognition may be important, such as cash)
9. Be a company (A bonus lost through lack of focus should not be recoverable if it should only increase in salary is delayed until the target is reached)
10. To be very clear
No comments:
Post a Comment