Reward Policy and Management System for Cheezy Pizza Company in Singapore

HUMAN RESOURCE MANAGEMENT

Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Plan Overview...........................................................................................................................3
3.0 Significance of Reward Policy..................................................................................................3
4.0 Objective of Reward System.....................................................................................................4
5.0 Considerations for Development of Reward System in Singapore Operation..........................6
6.0 Recommendation.......................................................................................................................9
7.0 Conclusion...............................................................................................................................11
References......................................................................................................................................12
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1.0 Introduction
Reward policy and reward management system (RMS) may be considered to be the critical
success factor (CSF) for the business organization (Camilleri, 2017). The instant paper briefly
discusses the implications of an effective RMS in an organizational context. While discussing the
same, the paper refers to the given case study of Cheesy Pizza Company which is a pizza
company and planning to expand its operations by opening 10 outlets in Singapore.
At the beginning of the study, the plan overview is provided followed by the significance of an
efficient reward policy. The subsequent part of the paper deals with the discussion on the
objective of the objective of the reward system. In addition, the researcher also attempts to
evaluate the points of consideration that should be kept in mind while developing a reward
system in Singapore of the business. Lastly, the researcher provides recommendation and wraps
up the discussion by providing a concluding note.
2.0 Plan Overview
Cheezy Pizza Company is Pizza Company based in USA. The company has been operating in
the given market for the last 10 years with the stable customer base and more than average
profitability than the market standard. The company has a good reputation in the domestic
market as employer and employees’ satisfaction index is considerably high for the firm in
comparison to its competitor. Now as part of its expansion program, the firm wants to go to
Singapore and plans t open 10 outlets therein. The reward policy of the plan needs to be
developed which forms the essence of the present paper.
3.0 Significance of Reward Policy
Reward management system (RMS) is a crucial success factor for a business organization. An
effective RMS helps the management to motivate the employees and staffs of the business
organization through financial and non-financial benefits. The core behind RMS is human
psychology. The researchers have established the fact that the effective reward policy boosts up
the employees and get them engaged in their roles and responsibilities (Swamy,
Nanjundeswaraswamy and Rashmi, 2015). Over the past few decades, there have been a number
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of researches conducted on the reward system and organizational performance and almost all the
findings have established the correlation between these two elements. It has been observed that
the well-structured reward system and policies around the performance linked bonus and
incentives significantly drive the motivation level of the workforce which, in turn, contribute
towards the operational excellence (Mustapa and Mahmood, 2016). The section below in the
report lists down some of the critical objectives behind a sound reward management system.
4.0 Objective of Reward System
Attraction and retention:
Business organization has several risk factors and the employee attrition rate is clearly among
them. There are instances where the management suffers from a huge attrition rate (Rees and
Smith, 2017). Such attrition may happen either because of the fact that the employees leave the
organization because of unsatisfactory pay package; or may be due to the termination by the
management on account of substandard performance (Hairon and Tan, 2017). In this context, an
interesting point to note is that the employee performance is also linked to the reward system of
the firm, as stated earlier also. If the business has faced consistently high attrition rate, the same
may dampen the brand value of the firm in the labor market and hence, the prospective
employees may not be interested to get associated with such brand (Pek-Greer, Wallace and Al-
Ansaari, 2016). Therefore, it becomes critical for the management to attract the new and best
talent and retain them with the business on a long-term basis. That is the reason; one of the
primary objectives of a strong reward management system is to attract and retain the talent
(Hairon and Tan, 2017).
Organizational Performance:
As mentioned previously, the reward policy is directly linked with the employee performance.
Well performing employees should be awarded so that the same effect the organization in two
ways. First of all, the well-performing employee gets motivated to continue to perform better
(Rees and Smith, 2017). Secondly, the same morally boost up other employees also indirectly to
contribute more to get awarded. RMS seeks to motivate the workforce through structured
policies and strategies and eventually helps the enhancement of quality and performance (Rees
and Smith, 2017).
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