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Recognition and reward


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Recognition and reward

  1. 1. REWARDS AND RECOGNITION Innovative Change Management (ICM) Preparing Your Organization for the New Innovative Culture H. James Harrington Dr. NAJM A NAJM Done by : Safaa Taamsah
  2. 2. Rewards and recognition  What do we mean by rewards-recognition-stimulation?  Why do people need recognition ?  Why reward people ?  Why organization include both individual and group rewards ?  What is the reward process consideration ?  What is “Reward task team (RTT)” job in the organization ?
  3. 3. Reward process Reward is defined as something given or offered for a special service or to compensate for effort expended Rewards can be subdivided into the following categories: – • Compensation—to financially reimburse for service(s) provided. – • Award—to bestow a gift for performance or quality. – • Recognition—to show appreciation for behaving in a desired way.
  4. 4. Reward process “Ingredients of an Organization’s Reward Process”: 1. To provide recognition to employees who make unusual contributions to the organization to stimulate additional effort for further improvement. 2. To show the organization’s appreciation for superior performance. 3. To ensure maximum benefits from the reward process by an effective communication system that highlights the individuals who were recognized. 4. To provide many ways to recognize employees for their efforts and stimulate management creativity in the reward process.
  5. 5. “Ingredients of an Organization’s Reward Process”: 5. To ensure that management understands that variation enhances the impact of the reward process. 6. To improve morale through the proper use of rewards. 7. To reinforce behavioral patterns that management would like to see continued. 8. To ensure that the employees recognized are perceived as earning the recognition by their fellow employees.
  6. 6. Why does recognition matter? Often, management thinks about rewards and recognition as two separate activities In truth, recognition is just one element of a total reward structure that is needed to reinforce everyone’s desired behavioral patterns. George Blomgren, president of Organizational Psychologists, puts it this way, “ Recognition lets people see themselves in a winning identity role, There’s a universal need for recognition and most people are starved for it.”
  7. 7. WHY REWARD PEOPLE? “The most basic behavior is to perform in ways for which we are rewarded, all through our lives, we have been rewarded for acting out a desired behavior. Rewarding people to reinforce desired behavior and encourage people to behave in a desired manner.
  8. 8. Maslow's Hierarchy of Needs Psychologist Abraham Maslow first developed his famous theory of individual Development and motivation in the 1940’s
  9. 9. Factors affect the degree to which the desired behavior is reinforced  Type of reward.  Elapsed time between meets or exceeds the performance standard.  The extent to which the behavior meets or exceeds the performance standard.
  10. 10. Stimulation “Stimulation is the encouragement of development or the cause of activity generally”. Types of stimulation : – Direct stimulation: “This normally takes the form of financial compensation or activities that are related to financial compensation like salary increases, paid-for trips, paid-for education and/or technical conferences, etc.” – Indirect stimulation: “This act normally takes the form of nonfinancial recognition. It benefits the organization by instilling pride and degree of satisfaction in the individual. Typical examples are increasing your office size, giving the new office by a window, trophies or plaques, a new computer, etc.”
  11. 11. NEGATIVE STIMULATION There are two other ways to encourage people to behave in a desired manner 1)Negative stimulation : It takes the form of physical and mental pain within the individuals(s) who does not perform in the desired manner. Negative simulation is sometimes confused with punishment, but in the workplace, it is more effective tool for motivating employee behavior. It encourages employees to perform better so they can have an unpleasant condition removed from their work environment. For example : A manager applies negative mental stimulation to an individual when the manager explains why the person is not performing at an acceptable level or a situation where employees who make mistakes are reprimanded in front of their peers or even spoken to harshly in private.
  12. 12. Humanistic stimulation (recognition) 2) Humanistic stimulation (recognition): In sociology is public acknowledgement of person's status or merits (achievements, virtues, service, etc.) Although recognition is an intangible reward, its positive impact on behavior is usually very effective and should never be overlooked, Studies have shown that people classify recognition as one of the things they value most (e.g. Recognition letters).
  13. 13. MOTIVATING FACTORS One of the biggest mistakes management makes is to use the same motivating factors for all employees. People are moved by different things because we all want different things. The reward process needs to be designed to meet the following basic classifications of needs: • Money • Status (ego) • Security • Respect
  14. 14. Reward process upgrading What is the reasons that we that we need to take a fresh look at our reward processes to upgrade them ?? I. In today’s environment, the organization needs to encourage teams of people to work together to provide the most efficient, effective, and adaptable organization. II. Not to develop an organization of prima donnas who are only interested in doing things that make them look good. III. The complexity of today’s environment and the sophistication of today’s employees. IV. The things that are valued by one individual may have no impact on another. V. The influx of women and various minority groups has had a major impact on the way the reward process needs to be structured. VI. In today’s environment, men’s attitudes have changed. The male population is aging, and men are often not the sole breadwinner for the family, causing them to be less financially driven. VII. To meet the needs of today’s organizations and their aggressive goals.
  15. 15. KEY REWARD RULES The reward process needs to be designed, taking into consideration the following points: 1. • Organizational culture 2. • Desired behavioral patterns 3. • Employee priorities 4. • Behavior/reward timing relationships 5. • Ease of use
  16. 16. TYPES OF REWARDS To help structure a reward process, let’s divide the rewards into the following categories: 1. Financial compensation: Salary, Commissions, Piecework, Organizational bonuses, Team bonuses, Gainsharing, Goal sharing , Stock options, Stock purchase plans and Benefit programs. 2. Monetary awards : Suggestion awards, Patent awards, Contribution awards, Best-in-category awards (e.g., best salesperson, employee of the year, etc.) and Special awards (e.g., president’s award)
  17. 17. TYPES OF REWARDS 3. Group/team rewards 4. Public personal recognition 5. Private personal recognition 6. Peer rewards 7. Customer rewards 8. Organizational awards
  18. 18. IMPLEMENTATION OF THE REWARD PROCESS To develop an effective reward process, many factors have to be taken into consideration. The following guidelines should be considered when developing the reward process for your organization : i. Reward fund ii. Present reward process iii. Present reward process analysis iv. Desired behaviors v. Desired behavior analysis vi. Reward usage guide vii. Management training
  19. 19. DON’T TURN THE ORGANIZATION UPSIDE DOWN The participative environment has changed the way many organizations look on the organization chart. In the old-style organization chart, top management was at the top of the pyramid, indicating that everyone below them provided services to top management. The popular notion is that with participative management, the pyramid has been turned upside down, with everyone servicing the employee who, in turn, services the customer. But what could be more unstable than a pyramid resting on its pinnacle?
  20. 20. DON’T TURN THE ORGANIZATION UPSIDE DOWN We like to think of the organizational structure more as a square (see Figure 7.2). This way of looking at the organizational structure indicates that all activities are important, that five-way communication exists, and that everyone in the organization has an obligation to make the best use of the organization’s resources in their efforts to serve their customers.
  21. 21. Reward media To be the most effective, the reward process should combine different reward media, thereby taking advantage of the positive impacts that each have and offsetting their disadvantages. The following media are used individually or in combination to produce desired behavior: 1. Money 2. Merchandise 3. Plaques/trophies 4. Published communications 5. Verbal communication 6. Special privileges
  22. 22. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Financial (Money) Rewards • Its value is understood. • It is easy to handle. • The rewardee can select the way it is used. Disadvantages of Financial (Money) Rewards • Once it is spent, it is gone. • If used too often, it can be perceived as part of the employee’s basic compensation. • It is hard to present in a real showmanship manner. • Often, it is not shared with the family
  23. 23. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Merchandise Rewards • They can appeal to the whole family. • They have a trophy value. • They can be used as a progressive reward. (For example, the employee is given points that can be redeemed or accumulated for a higher level merchandise reward.) • They cannot be confused with basic compensation. Disadvantages of Merchandise Rewards • More administrative time is required. • A choice of merchandise rewards must be kept in stock. • There may be other things the rewardee would prefer.
  24. 24. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Plaques/Trophy Rewards • Directly tied in to the desired behavior • Lasts a long time and is never used up • Customized to the employee (name is often engraved on them) Disadvantages of Plaques/Trophy Rewards • May not be valued by the recipient • Usually not useful • Often not valued by the family
  25. 25. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Published Communications • Can be very specific • Receive wide distribution • Inexpensive way of rewarding an individual • Document is long lasting Disadvantages of Published Communications • No tangible value • Can reduce cooperation and cause envy • Can be blown out of proportion by the individual in comparison to total contributions over a longer period of time
  26. 26. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Verbal Communication • Very personal • Can be given when the desired behavior occurs • Least expensive Disadvantages of Verbal Communication • Not tangible • Has no visual reinforcement • Can be misunderstood
  27. 27. ADVANTAGES AND DISADVANTAGES OF REWARD MEDIA Advantages of Special Privileges (For example, attend conference, take a business trip, additional vacation days, new equipment, etc.) • Recipient can be involved in the selection • Can meet unique employee needs • Highly valued by employees • Can be used to support organizational objectives Disadvantages of Special Privileges • Can cause envy • Can impact the organization’s operation when the individual is not available • Can be expensive