Designing a Reward System for Cheesy Pizza Singapore Expansion 2018

This report outlines the design of a reward system for Cheesy Pizza as it expands into Singapore. It begins by introducing the company and the purpose of the assignment, which is to advise senior management on how to motivate and reward employees. The report then details the objectives of a reward system, emphasizing its importance in attracting and retaining talent, enhancing organizational culture, motivating employees, and strengthening the organization's structure. Key factors influencing the design, such as total rewards, pay structure, reward mix, intrinsic and extrinsic motivations, equity, and compliance with local legislation, are discussed. The report also addresses implementation considerations, including communication, union interference, and line manager training. Finally, recommendations are provided to ensure the reward system's effectiveness and alignment with the company's goals.

Running Head: REWARD SYSTEM DESIGNING
Cheesy Pizza
Singapore
[REWARD SYSTEM DE

REWARD SYSTEM DESIGNING 1
Table of Contents
Introduction................................................................................................................................2
Company background.................................................................................................................2
Reward system...........................................................................................................................2
Objectives of reward system......................................................................................................2
Importance of rewards system....................................................................................................2
Adapt to future change...........................................................................................................2
Comply with corporate environment of the organization......................................................2
Align and support business strategy.......................................................................................2
Align with HR practices.........................................................................................................2
Reward system designing...........................................................................................................2
Total reward system...............................................................................................................2
Programme.........................................................................................................................2
Value..................................................................................................................................2
Pay structure...........................................................................................................................2
Reward mix............................................................................................................................2
Intrinsic and extrinsic motivations.........................................................................................2
Equity.....................................................................................................................................2
Comply with the local legislation...........................................................................................2
Implementation...........................................................................................................................2
Communication......................................................................................................................3

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Union interference..................................................................................................................3
Functions............................................................................................................................3
Role of trade union.............................................................................................................3
Line manager’s training..........................................................................................................3
Feedback.................................................................................................................................3
Recommendations......................................................................................................................3
Conclusion..................................................................................................................................3
Reference....................................................................................................................................4

REWARD SYSTEM DESIGNING 3
Introduction
Today organizations are expanding their business overseas to make their business global. In
this process globalization is helping them to expand easily. Globalization motivates
organizations for such decisions also encourages companies to innovate new products and
strategies to make their business successful. The innovation in strategies is much needed in
the competitive market and increasing competition of the global market is the only reason
demanding for innovations in company strategies (Alfandi, and Alkahsawneh, 2014). To
make such innovative change organization need a complete support from their employees and
this support requires some motivation or driving force that can motivate or encourage
employees to make such changes in the organization. Providing rewards is one of the best
alternatives for motivating employees for enhancing their productivity and making some
extra effort for the organization. This suggests that an effective reward system is much
needed tool for an organization to motivate their employees. in some of the studies rewards
system is defined depending on the context for which the system is designed. Other studies
suggest that the reward system is not designed for a single purpose. There may be more than
one motive to design a reward system. These studies diversify the definition of reward system
depending upon the purpose for which a rewards system is designed (Alonso-Alonso, et al,
2015).
In this context Cheesy Pizza is introducing new reward system for its employees. This reward
system targets Cheesy Pizza employees to motivate them to enhance their efficiency so that
organization can achieve its goals and objectives set for the future of company. This report
identifies motivations or objectives of reward system and designs a rewards system to comply
with different factors influencing the system. The designing process and implementation of
the reward system is also discussed in this report.

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Company background
Cheesy Pizza is a US origin company. It is a family owned company and successfully
operated. Company was established in 1985, in New York. Restaurant serves homemade
Italian dishes and has its speciality in its variety of chees pizzas. Restaurant is making good
business but the globalization has started showing its impact on the sales of the restaurant
(Cheesypizza, 2018). The impact of the globalizing competitive market demands for new
innovative strategies to maintain company status and business. Restaurant wants its
employees get motivate for making extra efforts so that the business of the restaurant can be
increased. For this organization has decided to design a reward system to motivate its
employees.
Reward system
In every organization employees are the key elements to make the company successful and
even to introduce any change in the organization management needs the employees most.
HRM of the organization has to understand and identify the importance of employees in any
change they want to introduce in the organization. Once management understand the
importance of their employees to make any change in the organization, it will be easy for
them to identify the key objectives or goals of the reward system. (Bamberger, Meshoulam,
and Biron, 2014). Reward systems are also the fundamental of hiring and retaining new,
experienced, and talented employees in the organization for a longer time period. This
diversity of reward system defines a wide range of reward that can be provided in different
forms. This range of rewards can be categorised as monetary, non-monetary, and
psychological incentives. In literature there are many more fundaments of reward system are
discussed (Blechert, Klackl, Miedl, and Wilhelm, 2016). From all the fundamentals discussed

REWARD SYSTEM DESIGNING 5
in different studies most important fundaments is recognised as implementing new strategies
and achieving the goals and objectives of the organization.
Objectives of reward system
When an organization plans to design an effective reward system it is very important for the
organization to clearly define the objective off the system they are going to design. Defining
objective will make sure to fulfil the ultimate goal of system designing. Defining the
objectives clearly, ensure that the rewards system organization is designing will be effective
and surely will ensure the efficiency enhancement of the organization. Major objective of the
reward system in case of Cheesy Pizza are
 To hire talented candidates and retain the experienced ones
 To enhance the organization culture and making it favourable for innovation,
participation, and flexibility of employees
 To motivate employee to enhance their productivity
 To strengthen the organization structure in terms of organization status and market
value
Importance of rewards system
Rewards play an important role in different aspects of the organization. Provision of
incentives or rewards is primary consideration for HR management of the organization.
starting from HRM consideration rewards system attract talented candidate in the recruitment
ans selection process of the company. Different studies suggest that employee satisfaction is
the most important factor talented employees seek for. Being a system that satisfies the
employees in some context makes the system more important to be implemented in an
organization to attract and retain talented employees in the organization.

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Individuals have their own skills and efficiency for any work or responsibility but these skills
and efficiency of employees can be improved with such systems that motivate them to
enhance their productivity. Such rewards or incentive provided to the employees encourage
them with different motivation and ultimately lead them to make some extra efforts.
Literature states that the success of an organization can be measured by the organization
exploitation of their employees in terms of their qualification and skills they have. Such
definition of organization success motivates scholars to research in deep that how
organizations can improve their employee skills. Further organizations can understand how to
attract well qualified or experienced employees to improve company status and hierarchy in
the competitive market. Rewards or incentive being diverse motivating element for
employees ensures the skill improvement of employees. This makes it more important for
organization to design and implement an effective reward system to showcase its success.
There are some other aspects for which reward systems has its importance in a different
context and some of these aspects are as following
Adapt to future change
Since provision of rewards and incentives is a common and most effective approach an
organization can opt to motivate their employees, organization should design reward system
in such a way that is remains effective for longer time period. This concern of organization
for reward system suggests that system must comply with the changes that the organization
can face or come across in the future. This makes reward system more important to the
organization because provision of the rewards will enhance the flexibility of employees to
adapt the changes organization wants to make in future (Chen, Flint, Perry, Perry,. and Lau,
2015).

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Comply with corporate environment of the organization
Internal corporate environment of an organization has to be acceptable for employees
working in the organization. And this corporate environment can be improved with the
provision of rewards as rewards will introduce a respective competition among the employees
in a positive way (Buckholtz, et al, 2010). Such competitions are good for corporate
environment therefore reward system is important in this aspect too.
Align and support business strategy
Ultimate goal of the organization, while providing rewards or incentives, is to motivate
employees to make extra efforts for improving their skills and to enhance their performance
so that organization can achieve its goals and objective (Teoh, 2017). Therefore, reward
system plays an important role in providing support to the organization in achieving its
objectives.
Align with HR practices
Reward system is an integrated element of the organization that is interlinked with different
managements of the organization. Reward systems influence the HR management most in a
positive was as the provision of an effective reward system helps HR management to hire and
retain best professionals for the organization. Although HR management play a significant
role in designing of the rewards system, it gets much significant outcomes too in its favour.
Reward system designing
Designing process of the rewards system is difficult task for the organization management as
there are number of factors that need to be considered while designing a reward system.
These factors influence the designing process significantly and may lead the design to a
completely wrong way (Bradley, 2017). Therefore, consideration of these factors is very

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important and must be considered for their individual influence separately. Some of the major
factors which influence the designing of reward system most are as following
 Total reward
 Pay structure
 Mix reward
 Intrinsic and extrinsic motivations
 Equity
 Comply with local legislation
Total reward system
Total reward system is defined as the provision of a reward system in which, both the
monetary and non-monetary, incentives are to be provided to the employees. This type of
investment made by the company to provide both the incentives retains the professionals
making significant contribution to the organization in achieving its goals (Grabner, 2014).
Total reward system characteristics influencing the reward system design are
Programme
A programme of the total reward system must be considered to be provided in the reward
system to make it more effective. Programme specifically designed for the system helps the
organization to make its investment effective and easy.
Value
Value of the reward system is must especially for employees. Greater value of the reward
system among the employees makes it more effective and efficient. Therefore it is important
that the reward system have a high value.

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Pay structure
If the organization is investing its money and efforts in providing rewards to motivate them
then it is important to define an effective pay structure that ensures the complete satisfaction
of employees. An effective pay structure includes every possible way of rewarding so that
most of the employees satisfies with the system (Dreher, Kohn, Kolachana, Weinberger, and
Berman, 2009). Since every employee has his individual interests or desires to be satisfied
with their job, a wide range of rewards can make them all satisfied with every aspect them
desire for. An example of pay structure or various rewards can be seen below in the chart

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Reward package
Extrinsic
Core benefits
Basic salary
Variablw pay
Merit
Bonus
Sharing options
Fringe benefits
Health insurance
Life insurance
Pension
Company Car
paid education
Holiday apy
Company discounts
Paid leave
Holidays
Sickness days
Maternity
Training
Unpaid Leave
Add maternity
Adoptive
Parental
Intrinsic
Job satisfaction
Feedback
Recognition
Responsibility
Autonomy
Security
Development
Status

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Reward mix
Mix rewards are designed to promote a culture that can comply with the business strategies of
the organization. This system requires some extra ordinary efforts to the consideration of
various elements influencing the reward system along with maintaining the flexibility, equity,
and simplicity. This consideration suggests a provision of financial and non-financial rewards
and making both fixed as well as variable payments to the employees (Huang, and Chen,
2010). Mixed rewards consider the basic salary of employees as a benchmark for the
provision of such rewards. Reward mix system allows the provision of incentives to both the
individual efforts as well as team efforts.
Intrinsic and extrinsic motivations
Reward systems are designed to motivate employee and these motivation can be categorised
broadly into two categories as intrinsic and extrinsic motivations. While designing a reward
system the consideration of right motivation that is required for individual employees should
be clearly identified to make the system more effective. As the name defines the meaning of
intrinsic and extrinsic motivations explains the motivation of employees in the form of self-
motivation and external motivation respectively (Ke, and Wei, 2008). Both the motivations
can be understood with the help of below given table differentiating these motivations
Extrinsic Intrinsic
 This is an external form of motivation
 Not necessary to get from other
person
 This is defined as motivation
provided for some specific work
 Employees accomplish goals given by
the management or seniors
 HR manages the engagement of
 This is an internal form of motivation
 Essentially driven by desires of the
employees
 This motivation is defined as self-
motivation of employees
 Employees accomplish their goals for
self-satisfaction
 Employees manage their engagement