Blog 14 - Reward

Reward is a system consisting of financial rewards and employee benefits, which together comprise total remuneration. Increasingly organisations are looking at non-financial rewards as a key element of a reward strategy as money is not everything to some individuals.

Wembley stadium employs thousands of staff and it is very important to keep each and every person motivated to keep the stadium running efficiently and productively. Looking within the Wembley merchandise store, many motivational techniques are brought in to increase sales and attitude, the main motivational technique used is financial and non financial rewards. An example of a financial reward is an increase in salary after each year depending on appraisals and sick rate. This is one of the main motivators as money is such an essential item in modern society. Also fringe benefits are included after meeting certain goals, these are additional items added on at the end of each month such as free meals or tickets to events. A big motivator for staff at Wembley is the performance related pay which is where staff is given bonuses depending on how much of a certain item they sell or if they achieve specific goals.

Although financial rewards are important for employees, not everyone gets motivation from money related rewards, there are some non-financial rewards such as leaving early and special purchases which the management offer, this relates to Locke’s goal-setting theory where an employee will work harder as they have something to aim for. Also the staff is often given a sense of responsibility as the mangers are often called away to other parts of the stadium for, leaving the sales staff alone in the store for a period of time. This often entails refunds, going to the stock room and in some circumstances cashing up. This gives a sense of recognition and trust within the staff and managers.

There are different rewards for the part and full timers to make it fairer to all employees and allow everyone a chance at achieving a reward. Full timers are in the store more often so are able to achieve targets set by management quicker than the part time staff; therefore they have different rewards to allow part timers to have a chance of winning. The rewards are generally the same so it’s fair for everyone and allows everyone a chance at the same given rewards.

Even in the state of the economy, chief executives still receive large bonuses regardless whether or not the organisation has underperformed, here are some points to argue for and against; Chief executives are at the top of the organisation, they obviously have worked hard to get to that position due to the relevant skills and qualifications held. Although the business has underperformed they still carry huge pressure with the decision making of the business and have a lot more responsibilities compared to other employees. It may not be the chief executive fault that the organisation has underperformed.
It can be seen as a positive paying the chief executive the bonus as then it may give them the drive to make the business succeed.

Decisions made by the chief executive may have been wrong or even if they did not fulfil their responsibilities properly, which means it is their fault. Bonuses is a type of reward that only should be paid if the person deserves it so why should the chief executive get a reward for something they did not do well in, they must earn their rewards and should be deducted money if they continue to underperform.

To conclude, rewards include both financial and non-financial ways that an organisation can repay their employees for the hard work given. This greatly motivates employees and increases their commitment to the company meaning higher levels of performance.

References

Mullins, L. (2010) Management and organisational behaviour.9^th ed. Essex: Pearson Education Limited.