Reward System | Case Study Report

Running head: REWARD SYSTEM
Reward System
Name of the student
Name of the university
Author Note:

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Table of Contents
I. Introduction..................................................................................................................................3
A. Brief description of Cheesy Pizza (the company):.....................................................................3
B. Purpose of the assignment:.........................................................................................................4
C. Scope:..........................................................................................................................................4
II. Objective Overview....................................................................................................................5
A. Purposes/Aims of a Reward System slide:.............................................................................5
Motivate employees:................................................................................................................5
Retention of management members and employees:..............................................................5
III. Reasons for attention to Reward Design:..................................................................................6
A. The reason for the reward system:..........................................................................................6
B. To align Cheesy Pizza's reward system to business strategy and employees' need is another
reason:..........................................................................................................................................7
C. Management need to ensure reward system complies with the pay legislation of Singapore:
.....................................................................................................................................................8
D. Reason for attention is to take the economic climate of Singapore in the reward design:.....8
E. Cost effective with a budget:...................................................................................................9
IV. Designing factors in Reward System........................................................................................9
A. (Design/Designing a Reward System slide, Payment systems section):....................................9
B. Briefly say….............................................................................................................................10

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C. Cheesy pizza, in designing the reward system, should consider:.............................................10
D. Pay structure… (recommend) several pay structures … 2 types):...........................................10
E. Extrinsic and Intrinsic reward (praise, career, job ro) (Extrinsic vs Intrinsic...........................11
Rewards slide) → briefly talk about Maslow's Hierarchy of Needs, Hereberg's Motivators and
Hygiene Factors:............................................................................................................................11
F. Total Reward:............................................................................................................................11
G. Reward mix - Pay + benefits + incentives (commission, individual, team):............................11
V. Implementing Design (factors):................................................................................................12
A. Communicate to all employees → understand or accept…..................................................12
B. Seek management for approval and changes, if needed…...................................................12
C. Train department managers on the reward system - help HR explain to employees reporting to
them:..............................................................................................................................................12
D. Gather feedback from different groups of managers/employers – to reframe or improve the
new reward system:.......................................................................................................................12
E. Inform the trade union - to seek that support and help company to communicate/or to explain
to their union members - gain acceptance:....................................................................................13
VI. Conclusion:..............................................................................................................................13
References:....................................................................................................................................14

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I. Introduction
A. Brief description of Cheesy Pizza (the company):
Cheesy Pizza is a pizza manufacturing and marketing firm which is aiming to enter
Singapore and Hanoi, the capital city of Vietnam. The analysis of the case study uncovers
several facts about the firm under study namely, Cheesy Pizza. First of all, the case study clearly
mentions that Cheesy Pizza is expanding into Singapore. As per an article published in
Globalnewswire, the pizza and burger segments of the fast food is going of experience expansion
and going to emerge into as one of the largest segments in the global fast food market
(Globenewswire.com. 2019). As far as Singapore is concerned, the fast food market of the
country is already saturated and competitive with fast food giants like MacDonald’s and KFC
commanding around 40% and 13% of the market respectively. Thus, it is clear from this analysis
that it is extremely difficult for smaller fast food chains like Cheesy Pizza to enter the
Singaporean market. This it can be established that Cheesy Pizza is financially and competitively
strong enough to enter the market and sustain competition from its more powerful counterparts
(Lim and Rong Wei 2019). The scenario of the fast food market in Vietnam is however different
from that of Singapore. The fast food giants like MacDonald’s have failed to compete local the
fast food chains in Vietnam unlike Singapore (Turner 2018). Thus, the second fact which
surfaces about Cheesy Pizza is that the firm has the competitive strength of competing with local
scale fast food chains as well. The third finding which comes to the forefront is that the firm is
capable of making and implementing decisions for markets like Singapore and Vietnam with
diverse market conditions. The fourth factor which comes to the forefront is that Cheesy Pizza is
an employee centric firm and adopts strategic human resource management right from the apex

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level. This is evident from the fact that the apex management of the firm is looking forward to
form a reward system which would ensure motivation of the management and employees.
B. Purpose of the assignment:
The purpose of the assignment would be presenting a reward system before the
management of Cheesy Pizza Company. The company is entering Singapore and Vietnam. The
company would be have to compete with mainly international fast food chains like MacDonald’s
in Singapore while the main competitors in Vietnam would be local fast food chains. Thus, one
can point out that the business strategies which would be appropriate for Singapore would fail in
Vietnam. The same fact is applicable for the implementation of the strategies. Thus, it can be
established on this ground that the management under immense pressure to make diverse
strategies for these two markets. One again the same fact is applicable for the employees of the
company who would be implementing the strategies. The new reward system of the company
which would form the crux of the research would ensure that both the management and the
employees are motivated to take up the immense responsibility of making and implementing
strategies respectively for these two markets namely, Singapore and Vietnam.
C. Scope:
The scope of the paper would consist of a reward system which would motivate the
management and employees of Cheesy Pizza to form and implement strategies for Singapore and
Vietnam. The reward would be bifurcated into two parts namely, the reward system for the
directors and senior managers and reward system for the executives.

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II. Objective Overview
A. Purposes/Aims of a Reward System slide:
The following are the aims which the reward system which Cheesy Pizza is aiming to
adopt:
Motivate employees:
The main aim of the new reward system is to motivate the management and the
employees of Cheesy Pizza to take the arduous project of entering two diverse markets namely,
Singapore and Hanoi, the capital of Vietnam. Mohrman and Lawler (2017) mention that reward
and recognition strategies including personal appraisal have positive impact on the motivation of
the employees. Nguyen et al. (2017) mention that the leadership has strong impact on the
performance of the subordinate employees and ultimately on the organisations concerned. Thus,
two facts transpire from these study of these two articles. First, the employees of Cheesy Pizza
should be motivated to implement strategies formed by the apex management in Singapore and
Vietnam both of which are diverse markets. This means that the implementation of the strategies
in these two markets would be challenging which would in turn create stress on the employees of
Cheesy Pizza. Secondly, the management of the company would be play the leadership roles of
not forming strategies for these two markets but also motivating the lower level employees.
Thus, it can be established that the prime aim of the strategies would be motivating both the
management and the employees of Cheesy Pizza to make and implement marketing strategies for
both Singapore and Vietnam.
Retention of management members and employees:
The second aim of the reward system would be retention of members on the board of
management and the employees. Cho et al. (2017) mention that, ‘Employee emotions are rather

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complex and reflect the ups and downs of the work environment.’ They then go on to add that
organisations which fail to ensure emotional wellbeing of management members have to suffer
from high employee turnover which also result in employee turnover down the hierarchy. Thus,
it is evident from the discussion that the reward system would aim to support the emotional
wellbeing of the managers which in turn would motivate them to form strategies for both
Singapore and Vietnam (Katsikea, Theodosiou and Morgan 2015). Steffens et al. (2018) mention
that wellbeing of employees is important for the organisations to operate smoothly. One can
point out in this respect that the company is entering Singapore and Vietnam with different
market conditions. This is because while the company in Singapore would be competing with
multinational fast-food giants like KFC, it would be competing with local fast food businesses in
Vietnam. Thus, the strategies which the management of Cheesy Pizza would form for Singapore
would be very different from the strategies for Vietnam, Thus, implementation of the strategies
in both the markets would also be different. Thus, one can point that this need to deal with
diverse market conditions would create immense stress on the employees. Considering the fact
that excess stress results in employee burnout and is often responsible for employee turnover,
one can point that the employee turnover results in poor execution of business strategies owing
to lack of manpower (Lu and Gursoy 2016.). Thus, it can be established that the reward system
which Cheesy Pizza seeks to implement should aim to reduce employee turnover at the
management and execution levels.

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III. Reasons for attention to Reward Design:
A. The reason for the reward system:
The first reason for forming the reward system for Cheesy Pizza is deciding the pay
market position which the firm would acquire in Singapore and Vietnam. For example, as per the
instructions of the National Wage Council, Government of Singapore, the employees receiving
salary of $1400 should receive increments of S$50 to S$70(Gov.sg. 2019). The Ministry of
Manpower, Government of Singapore clearly mentions that as per the employment policies
formed, the companies should increment the salary of the lower level employees in order to
strengthen their financial wellbeing. However, the country has no minimum wages which have to
be paid to employees. The Government of Vietnam on the other hand fixes minimum monthly
wages depending on the location of work. For example, the lowest prevailing monthly wage rate
in the country is $125 while the maximum wage rate is $180 (Das 2019). Thus, it is evident that
the government of Singapore exercise less strict control on the labour market compared to
Vietnam. Similarly, the wage system of Singapore is more aligned to the market compared to the
wage system of Vietnam. Thus, one can point that Cheesy Pizza would have to form the reward
system so as to establish and exhibit compliance to the wage related laws or practices of both the
countries namely, Singapore and Vietnam.
B. To align Cheesy Pizza's reward system to business strategy and employees' need is
another reason:
The second cause of forming a reward system for employees would be aligning the
process of reward system which would prevail in firm to the business strategies and the needs of
the employees. Thus, in other words, the reward system would aim to achieve strategic fit of the
firm with the market conditions in both these markets. For example, the main competitors of

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Cheesy Pizza in Singapore would be multinational fast food giants like KFC (Rong Wei and Lim
2019). The main competitors of the firm in Vietnam would be local fast food firms. It is in fact
worth noting that even multinational companies have failed to establish themselves in the
country (Turner 2018). This means that strategies which would succeed in Singapore are less
likely succeed in Vietnam. This means that the staff members which the company would be
required to employ in Singapore would have different types of skills and knowledge compared to
their Vietnamese counterparts. Thus, the reward system would enable the company to reward
and motivate the employees across the hierarchy, thus aligning them to the business operations.
C. Management need to ensure reward system complies with the pay legislation of
Singapore:
The management of Cheesy Pizza would be able to exhibit higher level of legal
compliance in both the host nations through its reward system. As already pointed out that in
Singapore, the government emphasises on firm increasing the salaries of employees with no
written minimum wages. The Government of Vietnam on the other hand lays down minimum
wage rates which would be applicable for labourers. Thus, the reward system which the company
would establish in both these nations would exhibit compliance to the respective laws. For
example, in Singapore, Cheesy Pizza would decide the payable salaries depending on the
credentials of the employees concerned. However, in Vietnam, the firm would have to exhibit
compliance to the minimum wage rates established by the government.
D. Reason for attention is to take the economic climate of Singapore in the reward design:
The reward system which Cheesy Pizza would establish should take into account the
economic conditions prevailing in both Singapore and Vietnam. For example, Singapore is a
booming economy with strong economic ties with markets like the USA, China and India.

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Vietnam on the other hand is dependent on her neighbours namely, China and India to a greater
extent. Thus, it can be established that the cost of living in Singapore is far higher than Vietnam.
The reward system in Singapore would be designed to provide higher salaries to the employees
compared to the Vietnamese counterpart.
E. Cost effective with a budget:
The wage system which would be established in Singapore and Vietnam should be
different. One can point out that cost of living in Singapore is higher compared to the cost of
living in Vietnam. Thus, it can be established that the company would have to pay higher rates of
wages in Singapore compared to Vietnam. One can also point out that amount of budget which
the reward system to be established in Singapore would attract would be higher compared to the
amount which would be allocated to operate in Vietnam. Thus, it can be established that the
company has to form the reward systems in these two countries by taking into account the
prevailing market conditions.
IV. Designing factors in Reward System
A. (Design/Designing a Reward System slide, Payment systems section):
The reward system which Cheesy Pizza would establish in Vietnam and Singapore would
consider the prevailing market conditions. The payment structure of employees would take into
account the designations of the employees. For example, the members of the management of the
company would get higher basic salary rates compared to the lower level employees. The second
factor which the payment structure of the company would consider would be extrinsic and
intrinsic criteria. The extrinsic criteria would consist of the financial rewards like the basic
salary, bonus and incentives. The intrinsic aspect would consist of factors like praise, career

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appraisal based on performance and job redesigning, if required. The company should also allow
work life balance as a part of the reward system to employees. The company total reward which
employees would receive would consist of both payments (intrinsic) and benefits (WLB,
entertainment and appraisal). The employees would also receive incentives for over achieving
their targets. While, the intrinsic benefits would remain uniform, the extrinsic benefits to certain
extent would depend on the designations and performances of employees. For example, WLB
would be restricted to employees hold positions of managers and above. However, benefits like
praise would be provided to all employees.
B. Briefly say…
The company should provide training to the employees deployed in both the markets as a
part of the reward system. The employees should be trained at least once a year in order to
improve their knowledge and skills. This would boosts the performance of employees and
motivate them to take more responsibilities.
C. Cheesy pizza, in designing the reward system, should consider:
Cheesy Pizza while designing reward system should consider the internal and external
factors of the company. For example, as far as external market conditions are concerned,
Singapore is far more developed compared to Vietnam. The cost of living in Singapore is as a
result higher than Vietnam. As far as internal factors are concerned, the employees in Singapore
expect higher benefits from the company compared to their Vietnamese counterparts. Thus, the
company should design the reward systems for employees serving both the markets by taking
into account these factors. However, the reward system should be ethical and legitimate to the
employees deployed in both these markets.

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D. Pay structure… (recommend) several pay structures … 2 types):
The payment structure of Cheesy Pizza should be divided into several categories. The
first basis of categorisation would be the country of operations. For example, the payment
structure which the company would offer in Vietnam would clearly show the national minimum
wage rate established by the Government of Vietnam. The payment structure of Singapore would
on the other hand provide for increments of lower level employees. The second basis of dividing
the payment system is designation. The reward system would take into account the band to
which an employee belong. The basic salary of a manager would be higher than an executive
level employee.
E. Extrinsic and Intrinsic reward (praise, career, job ro) (Extrinsic vs Intrinsic
Rewards slide) → briefly talk about Maslow's Hierarchy of Needs, Hereberg's Motivators
and Hygiene Factors:
The reward system of Cheesy Pizza would consist of both extrinsic and intrinsic. The
extrinsic components or the hygiene factors would consist of financial components like salary,
bonus and incentives. The intrinsic or the motivator factors would consist of non-financial
aspects like responsibility, recognition and praises.
F. Total Reward:
The total rewards which employees would receive would consist of both intrinsic and
extrinsic components. They would consist of salary, bonus, incentives, recognitions, praises and
a healthy working environment. However, benefits like WLB would depend on the bands of the
employees concerned.

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G. Reward mix - Pay + benefits + incentives (commission, individual, team):
The reward mix would consist of three components namely, basic salary, bonus and
incentives. The salary rate would depend on the band of the employees in the organisation. The
bonus would depend on the basic salary and would be paid before occasions like Christmas. The
employees with lower salary rates would receive higher rates of bonus to increase their take
away. The incentives would depend on the performance of the employees. Only employees
overachieving their targets would receive incentives.
V. Implementing Design (factors):
A. Communicate to all employees → understand or accept…
The management of the firm would implement the reward systems by communicating the
same to all the stakeholders like government, employees and investors. It would be subjected to
their approval and acceptance.
B. Seek management for approval and changes, if needed…
The reward system would be subjected to the final approval of the management. The
management may in discussion by stakeholders like consultants change the reward system from
time to time.
C. Train department managers on the reward system - help HR explain to employees
reporting to them:
The management would provide training to the departmental managers on the reward
systems. This would enable the managers monitor their performance of the employees they
supervise more accurately and recognise the future training needs.

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D. Gather feedback from different groups of managers/employers – to reframe or improve
the new reward system:
The management of Cheesy Pizza should obtain feedback from groups of managers and
employers to reframe and improve the reward plan. The reward plan would be amended from
time to time in order to align it to the prevailing market conditions. For example, the
Government of Vietnam raises the national minimum wage, the firm has to incorporate the same
in the reward system.
E. Inform the trade union - to seek that support and help company to communicate/or to
explain to their union members - gain acceptance:
The management of Cheesy Pizza should inform the trade union on the reward system
and seek its support. The management of the company should hold meetings with the
representatives of the trade unions and explain them the reward system proposed. This would
result in greater transparency level.
VI. Conclusion:
One can conclude that Cheesy Pizza should implement the new reward system. The firm
should obtain support of the stakeholders prior to implementing the same.

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References:
Cho, Y.N., Rutherford, B.N., Friend, S.B., Hamwi, G.A. and Park, J., 2017. The role of emotions
on frontline employee turnover intentions. Journal of Marketing Theory and Practice, 25(1),
pp.57-68.
Das, K. 2019. Vietnam-briefing.com. [online] Vietnam-briefing.com. Available at:
https://www.vietnam-briefing.com/news/vietnam-hikes-minimum-wages-by-5-3-percent-in-
2019.html/ [Accessed 23 Dec. 2019].
Globenewswire.com. 2019. Globenewswire.com. [online] Available at:
https://www.globenewswire.com/news-release/2019/07/12/1882007/0/en/Global-Industry-
Trends-in-Fast-Food-Market-Size-Share-Will-Surpass-USD-690-80-Billion-by-2022.html
[Accessed 23 Dec. 2019].
Gov.sg. (2019). Gov.sg. [online] Available at: https://www.gov.sg/news/content/wage-raises-of-
50-to-70 [Accessed 23 Dec. 2019].
Katsikea, E., Theodosiou, M. and Morgan, R.E., 2015. Why people quit: Explaining employee
turnover intentions among export sales managers. International Business Review, 24(3), pp.367-
379.
Lim, J. and Rong Wei, N. (2019). Todayonline.com. [online] Todayonline.com. Available at:
https://www.todayonline.com/singapore/big-read-short-sporeans-love-fast-food [Accessed 23
Dec. 2019].

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Lu, A.C.C. and Gursoy, D., 2016. Impact of job burnout on satisfaction and turnover intention:
do generational differences matter?. Journal of Hospitality & Tourism Research, 40(2), pp.210-
235.
Mohrman, A.M. and Lawler, E.E., 2017. Motivation and performance-appraisal behavior.
In Performance measurement and theory (pp. 173-194). Routledge.
Mom.gov.sg. 2018. Mom.gov.sg. [online] Available at:
https://www.mom.gov.sg/newsroom/press-replies/2018/1107-opinion-editorial-by-minister-
josephine-teo-on-minimum-wage [Accessed 23 Dec. 2019].
Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of transformational-leadership
style and management control system on managerial performance. Journal of Business
Research, 70, pp.202-213.
Rong Wei, N. and Lim, J. (2019). Channelnewsasia.com. [online] Channelnewsasia.com.
Available at: https://www.channelnewsasia.com/news/singapore/singapore-love-affair-fast-food-
shake-shack-a-w-mcdonalds-kfc-11611608 [Accessed 23 Dec. 2019].
Steffens, N.K., Yang, J., Jetten, J., Haslam, S.A. and Lipponen, J., 2018. The unfolding impact of
leader identity entrepreneurship on burnout, work engagement, and turnover intentions. Journal
of occupational health psychology, 23(3), p.373.
Turner, A. 2018. Why McDonald's and Burger King flopped in Vietnam. [online] CNBC.com.
Available at: https://www.cnbc.com/2018/09/13/mcdonalds-burger-king-vietnam-fast-food.html
[Accessed 23 Dec. 2019].