ObjectiveThisstudy highlighted the impact of newly implemented reward and recognition programon employee’s motivation and satisfaction. AbstractThisstudy will help to understand the reasons for the implementation of new rewardand recognition system in the organization (DESCON) and its impact on employee’smotivation which will help in the satisfaction of the employee. The company hasimplemented the job evaluation system introduced by Mercer which is a 3P modelof job evaluation.
i.e Pay for Position, Person and Performance. Qualitativeapproach has been used to study the impact of this system after implementation.For this purpose a focused group of key persons in the organization has beenselected to evaluate and investigate the effectiveness of the program. IntroductionJobevaluation is a very important factor for any employer as he will be able tohire the right persons for the right job. DESCON is a multinational companywith over 17000 employees working in this organization. Its head office islocated in Lahore Pakistan.
Merceris an internationally accepted job evaluation system to Pay based on Position, Person and Performance. Industrialization broughtin the challenge of how and what to be paid to workers being employed toundertake certain jobs. These jobs primarily having tasks which are repetitivein nature and therefore, once a skill is developed, more or less all workersare equal in their performance. This sowed the seed of Pay for Position or Job based Pay,whereby based on the knowledge and skill, a person being utilized to perform toachieve certain pre-determined level of performance, equal wages are paid.
Paying the position suggests that all employees are identical in thecontribution and their value. Pay for Position can very well be defined ashow and how much employees should be compensated for fulfilling theirposition’s responsibilities, ensuring internal equity and externalcompetitiveness. The alternative to job-based pay is to compensate staffaccording to the value of their skills in the market.
The most common approachis Competency-based pay or Payfor Person. Along with these two, the other fact came into prominence wasthe real reason of recruiting a person and this is that the person has toperform to the maximum level, he/she can. A person is to perform to the extentof Knowledge, Skill and Abilities one is possessing and therefore, came inexistence Pay for Performance intothe market. Under this model, both short and long term rewards are considered. Theorganization has decided to go into cultural transformation of jobevaluation.
In lieu of this the companyhas launched the 3P model of the job evaluation after certain research and pastexperiences for the better compensation of employees as per their position.After the implementation of this model, the motivation level of differentemployees is different. The study will allow us to investigate about theimpacts and consequences of this system on the motivation level of differentemployees after its implementation and how it is different from the previoussystem of evaluation of an employee in the organization.
For this purpose we have decided to have afocused group discussion of different employees. And after having this discussion we haveexplored the answers to different questions arise in the mind of differentemployees. Literature Review There is a large body of literature, including researchliterature regarding job evaluation, impacts of rewards and recognition on themotivation of the employees. Reward and recognition programmes come within thediscussion on extrinsically motivated behavior thatoccurs when an activity isrewarded by incentives not inherent in the task (Deci,1971).
In the prior studiespractitioners explored many factors which are helpful in uplifting themotivational level of employee in an organization. This has been tested bydifferent studies. Job evaluation is an important criteria for the recruitmentof the appropriate candidate for the appropriate position. Seeing what motivates to representatives is one of the objectives of the Administration. Despiteit may be not workable straightforwardly to inspire others.
The overall aim ofhaving employees identify their own welfare with that of theorganization. (Bruce andPepitone, 1999).In accepted agreement rewards programmes come aural the all-embracingabstraction of advantage strategies which are authentic asthe “deliberate appliance ofthe pay arrangement as an capital integratingmechanism through which theefforts of assorted sub-units or individuals areDirected appear theaccomplishment of an organization’s cardinal objective”. (Gomez-Mejia andBalkin, 1992).They are administration accoutrement that hopefully contribute toa firm’s capability by influencing alone or accumulation behavior (Lawler andCohen, 1992).
All businesses use pay, promotion, bonuses or other types ofrewards to animate aerial levels of performance (Cameron and Pierce, 2001).In an minimum, workers hopethe association will give acceptable reasonable pay, safe. Attemptingconditions, furthermore reasonable medication. Such as management, workersoften. Hope more, relying upon the quality for their needs to security,status,. Involvement, challenge, power, Also obligation.
Exactly how yearningthe. Desires of each party need aid differ from association to association(Beer et al., 1984).
The writers accept thatevery person needs those possibilities to innovativeness also for accomplishingobjectives. The limitless questions are how associations scope this possibility,what’s more entryway they invigorate and innovativeness that what’s more encourage previously, their people theyearning should succeed also to attain self fulfillment through their worth ofeffort. The regular topic of the writers will be the conviction thatindividuals necessity to make regarded furthermore approached concerningillustration precious mankind’s capital.People are now seen as the primarysource of a company’s competitive advantage.Therefore, the way employee aretreated increasingly determines whether an organization will prosper or evensurvive (Lawler, 2003). HR policy makers and HODs can play animportant role to promote knowledge sharing culture (Ayesha et al.
2017), HRpolicy makers need to design effective recruitment and selection criteria toacquire competitive candidates. This research provided more understandingtoward the staff committed with their institution and developed trust byadopting three specific HR practices namely i) Recruitment and selection. ii)Training and development. iii) Compensation and reward. Thestudy was done on the basis of 198 survey responses from seven public highereducational institutes and the responses were collected on 7 point Likertscale.
The study clearer point that when HOD give fair recognition andappreciation to the staff by realizing their weaknesses and arranging training programs,the staff confidently share their ideas and opinions which increase trust and keepthem committed with their profession. The study also revealed the positive andsignificant influence of HRM practices on affect based commitment and affectivecommitment.Another research (Reena Ali et al 2009) depicts that thereis a statistically significant relationship between reward& recognitionsystem and motivation and satisfaction level. The study revealed that if rewards orrecognition offered to employees were to be altered, then there would be acorresponding change in work motivation and satisfaction. The results of thisstudy also indicated that sometimes the reward and recognition system may notbe as useful tool as it can be in some cases. In such cases the employees canbe motivated with some of the other factors/dimensions such as recognition ofthe work. The biographical questionnairewas a self-developed questionnaire that incorporated the following personalinformation of the respondents. Gender, homelanguage, marital status, age, race, job classification, education,qualifications, job grade and tenure.
The Nine Dimensions of the Questionnaire are I. Work content II. Payment III. Promotion IV.
Recognition V. Working conditions VI. Benefits VII. PersonalVIII. Leadership IX. General.
A comparative study of different motivational theorieswas conducted (Mark A. Tietjen et al 1998). This paper reviews the literatureof motivational theorists and draws from their approaches to job satisfactionand the role of motivation within job satisfaction.
Attitude is everything.Herzberg’s concept of attitude as a force powerful in output has beencomplemented by Locke’s formulation of value and its importance to work goalsand subsequently job satisfaction resulting in the enhancement of motivationlevel of the employees. The theories of Frederick Herzberg and Edwin Locke arepresented chronologically to show how Locke’s theory was a response toHerzberg’s theory. By understanding these theories, managers can focus onstrategies of creatingjob satisfaction. This is followed by a brief examinationof Kenneth Blanchard and Paul Hersey’s theory on leadership within managementand how this art is changing through time.How to measure motivation (Maria C. Osteraker, et al1999), A dynamic triangle has been developed to explain the motivation whichdepicts three different levels of motivation i.e the individual level, theorganization level and the culture level (society).
One of the oldest conceptswithin researchon motivation is hedonism, where the individual tries tomaximize pleasure and minimizepain. The model can be seen as a general theoreticalframework of the theories as it at the same time reduces their shortcomings bymaking out a need of a thorough examination of the measuring object where suchlevels as society, organizational culture and the personality of employees aretaken into account. One of the fundamental ideas in the learning organizationis to involve employees in processes at work, something that also should improvemotivation. Since the values of the employees affect their priorities asregards motivational factors offered by the organization, these values shouldbe the guidelines for further attempts to increase the motivational level amongemployees.Basic motivational techniques require managers andsupervisors to play an active role in coaching others. Active coaching towardmotivating employees includes:1. Givingpositive feedback and rewarding good behaviors;.
2. Public recognition of efforts;3. Providingincentives, even if they are non-monetary;4. Leading by example and demonstratingwillingness to be part of the team;5. Listening to what is being said and respondingappropriately; and asking questions, and showing interest and empathy in thedetails. Motivation viewed within the organizationstructure might not account for concerns over more personal impacts of theorganization’s financial situation. Leaders must endeavor to learn to reademotional signals from individuals in order to address how to motivate atwhatever level of concern could be most impacted. People will always haveconcerns, but determining which concerns within the workplace influence apersonal need is key to providing the best motivation.
By providing managers to opportunity to become leadersand see past standard activities, they themselves could create a workenvironment that sustains a motivating culture. (Micheal A. Crumpton et al 2013)The aim of this paper is to acknowledge and provide tips for ongoing motivationneeds of an organization. This article discusses several examples in theliterature regarding motivational elements. Findings of this article advocatesfor seeking new approaches to motivating employees as financial concernsdeepen.Theauthors proposed that the motivation should be re-engineered as theconventional techniques are not working anymore.
Conventionally there were twoapproaches for solving the motivation puzzle i.e by being tough or byunderstanding by being good. The authors have proposed a new fresh formula basedon friendship, work and respect (Dayr Reis et al 2001). To retain qualifiedemployees in an organization and to maintain a satisfactory type of roleperformance, people’s experiences in the system must be rewarding, particularlyif they have freedom to move in and out of organizations.
The core message isthat managers should reconsider the outdated motivational patterns utilized tomaintain role performance in organizations. Organizationsare under constant burden to boost and expand their performance and arecomprehending that an interdependent relationship exists between organizationalperformance and employee performance Methodology Afocused group discussion has been arranged and interviews of differentemployees have been conducted to explore the answer of the following questions 1. What is the first thing that comes in yourmind when you think of Mercer.2. What do you think is best about “MercerSystem”3. What do you think is the biggest problem relatedto this system4. What do you think has driven the company toimplement this system5.
Are you happy with the implementation of thissystem6. What is the significance of this system7. I am fairly compensated.8. Have you ever studied this system before orafter implementation9. Do you think that employees feel happier nowas compared to the previous system10.
Doyou feel that this system has been implemented in its true spirit11. Doyou feel that employees feel motivated/demotivated after its implementation12. Pleasegive examples if you feel that employees feel motivated/demotivated13. Whatdo you think can help employees feel motivated after the implementation of thissystem Findings/Conclusion Afterconducting interviews of the several persons and arranging a focused group discussion,we have arrived at the following conclusions. The company has decided toindulge in the cultural transformation. For this very purpose, the organizationhas decided to introduce the compensation system for the employees. After ourefforts, we have come to know that this is alpha numeric system. There arebands.
Narrow band and broad band. This Reward Philosophy will help thecompany to achieve the following keyobjectives: 1) Align ourselves with the market 2) Develop a culture of variablepay 3) Attract, retain, and motivate talent 4) Improve our internal pay equity5) Enhance the linkage of performance management system with employee rewardsThe perks/benefits such as medical, provident fund etc will be same for thebroad band (7 broad bands) while the pay will be variable as per narrow bands(26 levels). Only 10% of the employeesknew this system before its implementation.
Most of the employees who knew thissystem before its implementation belong to HR department because of the factthat they have to remain involved in compensation packages of the employees.Rest of 90% employees never bothered to know about this system of jobevaluation and compensation. According to some of the employees it is a verygood system and they think this system is well-established. Some of theemployees think that it is a very good system and all the solutions providedare good, while most of the employees think that it is not as beneficial as itshould be because this system has not been properly implemented according tothem.
Most of the employees think that the biggest problem related implementationof this system in organization is that this system evaluates the job on thebasis of 3Ps. In this scenario a person who has devoted 20 years to companyworking on a specified position will be treated equal to a fresh entry employeeagainst the same position and will get the same perks while the pay can bevariable. According to most of the employees this system has aligned theinternal and external compensation and others think that this has not alignedthe compensation. 65% of the employees are happy and motivated after theimplementation of this system as they have been promoted to the status of”Regular” and enjoying the perks which they were not enjoying before theimplementation of this system. The most important significance of this systemlies in the fact that most of the young employees have been upgraded based ontheir positions as they were working at the lead positions.
Now they areenjoying better perks as compared to that of the previous one. Some of theemployees after the implementation of this system, first time tried to searchabout this criteria as they thought they were not properly compensated. Thecompany has implemented this system to compensate the employees in a better waybut the demotivated employees think that this system has just been implementedto cut the cost of the expenditures done by company and reduction inperks/benefits of the employees. The motivated employees think that this is avery good system as this enables the organization to standardize the grades andsalaries. In the case of compensation, most of the young employees who are atthe leading positions think that they are fairly compensated while thedemotivated employees think that this system has only been implemented toreduce the cost by standardizing the salaries and they are not fairlycompensated and they feel furious about this compensation system. Some of theyoung employees who have been working in junior management cadre has been movedto the middle management position based on their positions which has increasedtheir skills and coordination resulting in the motivation of the employees.
The exploredresults of the questions have beendepicted in the treemap as below. Inthe end, based on this study we can conclude that this system is a very goodsystem of job evaluation and has been implemented in the true sense. Most ofthe employees are happy and motivated as they have been compensated in a betterway as compared to the conventional grading system. Consequently, theirmotivation level is high and they feel more satisfied as compared to that ofthe conventional one. Research GapThisstudy has been conducted in DESCON Engineering and it can be conducted in otherorganizations as well. And other organizations can also implement this systemto motivate their employees. References1.
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