Designing and Implementing Reward System for Cheesy Pizza

This report analyzes the reward system for Cheesy Pizza Company, focusing on its expansion into Singapore and Vietnam. It explores the objectives of a reward system, including attracting and retaining employees, motivating productivity, rewarding employees, influencing company culture, and reinforcing organizational structure. The report emphasizes the importance of designing a simple, culture-aligned reward system that considers market positions and macroeconomic issues. It details various factors in designing the reward system, such as total rewards, integrated versus isolated approaches, competence rewards, extrinsic and intrinsic rewards, and time-based versus team-based incentives. The report provides a comprehensive overview of how Cheesy Pizza can develop and implement an effective reward system to support its business goals and employee satisfaction in new international markets.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author notes

1
HUMAN RESOURCE MANAGEMENT
Table of Contents
1. Introduction................................................................................................................2
2. Objective of Reward System......................................................................................2
3. Attention to Design Reward System..........................................................................4
4. Factors in Designing Rewards System.......................................................................6
5. Factors in Implementing Reward System..................................................................8
6. Conclusion................................................................................................................11
7. References................................................................................................................12

2
HUMAN RESOURCE MANAGEMENT
1. Introduction
The Cheesy Pizza Company has the outlet in New York City and has been able to
achieve popularity in the area. The company has the mission to serve the best quality fast
food to the customers. Variations in the menu and the quality food is the main specification
of Cheesy Pizza. The company depends on a cost leadership strategy for gaining a
competitive edge. The company authority is now intended to expand its business in some of
the Asian markets. The company has decided to spread its business in Singapore, Hanoi,
Vietnam. By the year 2021, the company would open ten outlets in each of these locations.
The purpose of the study is to understand the aspects of the reward system in the company for
their new venture. Expansion of the company means the employees have to work with their
full potential. The scope of success in the new country ventures would be accentuated if the
company could motivate their employees through an effective reward system. The report
would concentrate on the designing and implementation of the strategic reward system for the
company.
2. Objective of the Reward System
The main objective of the reward system is to manage the rewards for the employees
in a consistent, equitable and fair manner. The purpose of the reward system is to motivate
the employees for achieving the strategic goals set by the organisational authorities. Some of
the basic objectives of the rewards system in Cheesy Pizza's expansion are discussed below-
a. Attract and Retain Suitable Employees
Retaining the existing employees are a crucial requirement for a company's success in
a new country. According to Bradley (2017), at the same time, the company has to take care
of new recruitments for the expansion work. This is why the company has to evaluate its

3
HUMAN RESOURCE MANAGEMENT
reward and wage system to attract the attention of the skilled and efficient candidates for their
company objective. The employees who are already the part of the organisation would expect
a reasonable and fair reward system to get motivation. When the company would establish
their outlets in Singapore and Vietnam, there would be a need for new candidates for the
operations. A constructive, unbiased and positive reward system would be instrumental in
retaining the employees and reducing the turnover. On the other hand, a carefully designed
reward system would increase the interest of the new candidates, and they would show their
eagerness to join the company.
b. Motivate employees in Productivity
To make the team follow a specific path, the leaders have to give them constant
motivation. This is done through the reward system of the company. There are various types
of the reward system, but all of them are designed to give their employees a push for
performing better in the organisational operations (Taylor and Alla 2018). The context of
reward and productivity are seen to be related directly. The workforce that is appreciated and
appraised work with more enthusiasm and positivity. Therefore, building an effective reward
system for the organisation is necessary for Cheesy Pizza Company for their extension
program as well.
c. Reward Employees
Employee satisfaction and employee engagement are the two main aspects of a
successful workplace. Rewarding the employee for their achievement is important to divert
them towards company welfare. Cheesy Pizza could grow through the individual and
collective advancement of the people related to it. Employees are one of the major
stakeholders of the company. As to deals with the service sectors, the evaluation of the

4
HUMAN RESOURCE MANAGEMENT
process and rewarding the outstanding performers have another level of significance. Reward
management would be the initiative to design the reward system of the organisation.
d. Influence of Culture
Company cultures are constituted of the workforce and the leaders. It is the primary
concern of any company that they could build a work culture that is open and supportive for
their employees. Job satisfaction is an important aspect that influences the behaviour of the
employees in the organisational background. As opined by Ngwa et al. (2019), an employee
who is happy is more motivated for gaining work objectives. The productivity of Cheesy
Pizza Company in its Singapore and Vietnam extension will increase if a positive and
constructive work culture is created. Also, the appreciation of the work and a reasonable
amount of wage could increase the trust of the workforce towards the authority. Again, the
achievements of an employee and rewarding the employee could increase the motivation of
others as well. Overall, there would be a constructive and active work culture in the
organisation if the management is able to have an effective reward system.
e. Reinforce the Organisation Structure
The organisational structure building is significant to achieve goals. The overall
structure of the organisation is built on workforce relations, communication and employee
engagement. An organisation must have a balanced number of new and old talent in their
organisation. The skilled and efficient employees of an organisation need to be reinforced in
a different manner (Taylor and Alla 2018). Reward system is at the heart of reinforcement.
Cheesy Pizza needs to continuously encourage their employees and reinforce the structural
base to gain their business goals in new countries.
3. Attention to Design Reward System
a. Uncomplicated Reward System

5
HUMAN RESOURCE MANAGEMENT
The reward system must be simple and comprehensive. The base of the rewards
system must be built on the requirements and objectives. If Cheesy Pizza management goes
for a complicated rewards system that might create confusions and complications in many
aspects. This would reduce the interest of the employees in understanding it. It is necessary
for the employees to understand the reward system effectively so that they could attempt to
participate actively. The wage structure, incentive and the appraisal proposals for the
company must be simple, fair and unbiased (Martono, Khoiruddin and Wulansari 2018). This
way, HRM would be able to manage the employee expectations and performance in a more
effective way, if the reward system is simple and uncomplicated.
b. Work Culture Aligned Reward System
The work culture of Cheesy Pizza is customer-centric. The company aims to give the
highest quality in their food and services so that they could build a loyal customer base in
Vietnam and Singapore. The company believes in a wage system that is just and reasonable.
This might vary in different countries according to the financial management contexts. This is
why the company management needs to take care that the reward system is aligned with the
company culture as well (Chopra et al. 2018). The work objectives and structure of the
employees are influenced by the remuneration, appreciation and rewards they get from the
top management. The reward system should be the medium through which the management
could reflect their work culture as a whole.
c. Paying According to Market Position
It is quite obvious that the market position of the company would not be the same as
that of New York. As the company is starting to expand their business in a new market, there
should be clarity in the fact that the pay scale of the company employees would be according

6
HUMAN RESOURCE MANAGEMENT
to the market position of the company. HRM should make it clear to the employees so that
they do not have any unjustified expectations regarding their payments.
d. Reward System
The reward strategy of the company would be divided into four categories-
compensation, benefits, appreciation and recognition. The compensation would include the
initial pay, wages and other parts of the salary system. The next part would be the benefits.
The benefits would be both direct and indirect. For example, the insurance plans of the
company or the employee rewards for the service performance would be part of this system.
Appreciation rewards are the intrinsic and extrinsic both. According to Azman and Ridwan
(2017), the leaders need to appraise and appreciate the success of the individual or teamwork
in the organisation. This reward could be monetary or verbal. Recognition part of the reward
system would be the appraisal schemes and promotional or career development schemes
under the reward system.
e. Macro-Economic Issues
The political and economic issues of a country influence the reward system of the
companies at large. The countries in which Cheesy Pizza is trying to start their venture have a
different economic structure. The governmental policies and the service quality of the
countries needed to be judged before framing the reward system (Ajayi 2019). The tax
system and economic condition of the country could influence the productivity and profit of
the company. This is why Cheese Pizza has to analyse the macro-economic aspects of
Singapore and Vietnam and then decide the reward system for its employees.
4. Factors in Designing Rewards System
a. Total Reward

7
HUMAN RESOURCE MANAGEMENT
Total rewards are the prime motivators of the rewards system in a company. For
Cheesy Pizza, the total reward would consist of compensation, work-life effectiveness,
benefits, recognition, and talent development and performance management. The total
package of the rewards is developed to attract new talents and retain the existing ones (Caza,
McCarter and Northcraft 2015). The total rewards the motivators for the employees to work
for individual and team performance. Therefore, Cheesy Pizza HRM needs to take special
care of the total rewards system and manage it accordingly.
b. Integrated and Isolated Reward
The integrated reward system is based on the total reward practices. This reward
philosophy advocates a strategy where the company’s visions, strategies and values guide the
structure of the company reward system in this system; the rewards are presented as a total
combination of different benefits and remunerations. The isolated reward system is based on
a specific reward for a specific achievement (Akhter et al. 2016). The integrated reward
philosophy would be appropriate for the Cheesy Pizza Company in its international venture.
This would be effective to provide its new and existing employees with all types of
appreciation and remuneration at the end of the process.
c. Competence Reward
The competency rewards would be given to the employees for achieving a milestone
in their career path. This is the rewards system that caters to the extraordinary performance of
the employees in a productive way. Some of the employees in an organisation are self-
motivated, and they have their work goals set (Shields et al. 2015). This type of reward is the
performance incentives that are viewed as highly motivated employees of the organisation. In
the new market, Cheesy Pizza Company could implement different incentives for target

8
HUMAN RESOURCE MANAGEMENT
achievement of the individual employees to appreciate and encourage their outstanding
achievements.
d. Extrinsic and Intrinsic Rewards
The rewards system are generally divided into two categories- extrinsic and intrinsic.
The extrinsic rewards are related to the bonus and salary raise. Most of the employees find
this type of reward effective for their productivity. Extrinsic rewards could be a salary raise,
gifts, bonus, and promotion. In short, all the tangible rewards are the extrinsic motivators for
the employees. On the other hand, the intangible rewards are intrinsic rewards. The example
of intrinsic rewards is a sense of satisfaction, appreciation and pleasure. This is mostly related
to the self-motivation part of the employees. For example, if one of the employees in the
Cheesy Pizza completes his work efficiently before assigned time and the result of the task is
remarkable, then he would automatically feel a sense of satisfaction and would be motivated
to start a new work in a positive note (Arena, Conte and Melacini 2015). Intrinsic rewards
and the extrinsic rewards both are the part of workplace environment development.
Therefore, the company has to take care of this from there point of view.
e. Time-Based and Team-Based Rewards
Time-based rewards are designed to appreciate the extra time that the employees
dedicate for the welfare of the company. There are many instances when some of the
employees would have to stay extra time than their shift timing. The Cheesy Pizza should
think of rewarding them by overtime bonuses. Other than that the company, along with their
teams, must design some of the team-based rewards. In the opinion of Ben-Shaanan et al.
(2016), team-based rewards are the group rewards that are endowed to the employees for
their work in the team. The targets that are set for the team members could be based on
production or customer retention objectives.

9
HUMAN RESOURCE MANAGEMENT
5. Factors in Implementing Reward System
a. Trade Union
Trade unions are the entity that is built with the purpose of providing and improving
the working lives of the workers. The trade union and their role in different country vary
most of the time. The total rewards and remuneration of a company are influenced by the
trade union. These are the association that works both with the employees and the company
owners. In countries like Singapore and Vietnam, the impact of the trade unions in deciding
the reward systems are immense. The trade unions are the link between the two parties-
employees and the company authority (Lewis, Swartz and Lyons 2016). These associations
are to be taken care of when deciding the wage, job security and incentive programs of the
employees in Cheesy Pizza’s expansion.
b. Communication and Involvement of Employees
The reward system is designed mainly for the employees, and it is designed by the
HRM department with the approval of the top management. In the case of Cheesy Pizza,
there is a need to have a completely new reward system for their new stores in Singapore and
Vietnam. As the company is trying to enter the new market, it is necessary for the
organisation to have a clear idea of the work culture of the place and make communication
with the workforce they are building for their venture (Chen et al. 2019). Communicating the
mission and visions of the company and making it aligned with the objectives are the
important part. The employees must have the idea why they what they must do for fulfilling
these objectives. The involvement of the employees in the rewards structure is also
important. If the opinions of the employees were heard and considered, they would show
more interest in the work process of the company.
c. Seeking Approval from Top Management

10
HUMAN RESOURCE MANAGEMENT
Top management is resource providers. It is important for any company to take care
of the opinions and decision of senior management. This is why the management of human
resources must seek the permission of the top management for the implementation of new
plans in the reward system. The results of any operation in the organisation directly affects
the interest of the authorities and senior management (Marx et al. 2016). Besides, they are the
one who has the authority to provide financial supports for the reward system. Therefore, the
human resources managers have the liability towards the top management to inform them of
all the deeds and measures that have been taken for the rewards system of Cheesy Pizza.
d. Pilot Run
The company must not implement new changes without doing a pilot run of the
reward system. The pilot runs for the company's reward system would be applied for a
specific department at first. The department could be in the marketing department. If the new
system has a positive effect on the performance of the employees, then it could be
implemented on the other departments of the company as well.
e. Review and Evaluation System
Evaluation is the necessary end part of any implementation in an organisation.
Regular evaluation is necessary to give an overview of the nature of results. The review of
the reward system would help Cheesy Pizza human resource management to be more
organised and effective. The feedbacks of the rewards system could be collected from the
employees and the leaders (Ben-Shaanan et al. 2016). The production results of the
employees could also be another yardstick to judge the effectiveness of the reward system for
the new endeavours. If the result of the rewards system is not up to the mark, the company
will take necessary measures to make changes in it. In the whole process, the company first

11
HUMAN RESOURCE MANAGEMENT
have to decide the required measures of reward system effectiveness and then decide how to
change them to achieve company objectives.
f. Stakeholders
Influence of the stakeholder in the company decisions is unavoidable. Cheesy Pizza
would have to face many challenges in implementing the right reward system for the
company. Stakeholder management is one of the challenges that the management has to take
care sincerely (Ngwa et al. 2019). The interests of the stakeholders are different in the same
context. They influence the decision making of the company authorities. Therefore, in
deciding the reward systems for the new ventures, the management of Cheesy Pizza might
have to take care of the interests of the investors and the employees at the same time. This
means that the rewards system that is favourable only for employees with high incentives and
wage system would curve the interest of the owners and the investors. Therefore, there has to
be the solution that would address both the need of the stakeholders and yet would be
effective for motivating employees for better performance.
6. Conclusion
Designing and implementing an appropriate rewards system for their new stories in
Singapore and Vietnam, Cheesy Pizza Company has to think of a number of aspects. The first
thing is to understand the objective of the reward system. It is quite explicit that the company
would be needing effective motivational factors for their employees so that they could work
towards fulfilling the company goals. The factors that could influence the rewards designing
have to be considered and evaluate by human resource management. Designing of the
rewards system has to be in a way that would complement the working culture of the
organisation. As a fast-food chain employee of the company would be more concerned with
customer satisfaction and have to give extra effort for that. The reward system could be both