Effective Reward System: Designing and Implementation

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Effective Reward System
Designing and implementation of reward system
Students Name
1/1/2018

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Contents
Introduction................................................................................................................................2
To motivate the employees there are various types of reward system which includes:............3
Reasons to pay attention to the reward system..........................................................................4
Pay structure...............................................................................................................................5
Types of pay structure................................................................................................................6
Factors in designing the reward system.....................................................................................7
Factors in the implementation of the reward system.................................................................9
Conclusion................................................................................................................................12

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Introduction
Cheesy Pizza Company started with the idea to deliver good food with the use of simple
ingredients. It includes the sauces of all the households and the daily made dough and
mozzarella. The mission of the company is to lead the food chain in every country and
deliver a valuable experience to its customers. The current mission of the company is to open
10 chains in Hong Kong and Singapore by the year 2018. The company delivers a wide range
of cheesy pizza keeping the traditional taste as a priority. It delivers pastries, Choco lava
cakes to enhance the customer experience and make it a memorable one. The organization
has a mere focus on delivering values of giving best in less and creating a working
environment in which all the employees are coordinated towards achieving the mission of the
company. In order to achieve the current vision, the company must establish an appropriate
compensation strategy that will help in motivating and encouraging the workforce towards
the goal of the organization (Armstrong, 2012).
Reward system refers to the allocation of compensation and benefits to the employees that
follow the standards, rules and the procedures established. The establishment of a proper
reward system helps in motivating the employees and encourages them to work harder. The
employees are motivated by rewarding them the financial and non-financial incentives. The
aim of providing the reward system to employees is to motivate them for higher performance
by providing appreciation, which leads to an increase in the productivity of the firm. It is also
used to improve the behavior of the employees towards the organization and leads to
coordination of efforts towards the accomplishment of organizational objectives (Armstrong,
Brown and Reilly, 2010).
The objective of developing an appropriate compensation plan is to retain and recruit the
qualified personnel, which will help in increasing the return on investment and develop a

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competitive advantage in the competitive environment. Development of an appropriate
compensation plan helps to motivate and encourage the employees as they feel satisfied and
are more committed towards the achievement of organizational goals. Effective
compensation plan depicts that the organization value the worth of the employees and are
involved in the development of personal growth of the employees (Pepper, 2016).
To motivate the employees there are various types of reward system
which includes:
 Intrinsic and extrinsic reward
Intrinsic rewards are those, which are felt by the employee itself and cannot be seen or
touch. It includes the development of challenging job for the employees and providing
them with the opportunity of career development. It includes creating of a flexible
working environment and job rotation and job enrichment while extrinsic rewards are
the one, which is provided by the organization in the form of salary, wage, bonus,
recognition, praise, promotion, and certificate of appreciation (HRMP, 2018).
 Financial and non-financial rewards
Cheesy Pizza Company should provide the financial reward in the form of salary,
wages, paid leave, gratuity, pension, accommodation, and transport allowance. It must
also provide the non-financial benefits in the form of creation of a working
environment, which provides rest and lunchtime to the employees, Involvement of
sports activities for the employees, attractive position, and responsibility of choice,
personal assistance and sufficient leave to keep the employees motivated and develop
the zeal to provide higher performance (Small business. Chron, 2018).
 Performance-based reward and membership-based reward