REWARD

A reward is a desirable outcome, it is the way in which organisations can make employees happier and appreciate the work they have done. Reward can be, but doesn’t need to be financial. A non-financial reward might be: recognition, career opportunities and flexible working time.

                           

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The organisation I am familiar with is the company I used to work for a few years ago, Leroy Merlin, which is a French worldwide home improvement and gardening retailer. The reward system in this company was varied for different people. Office department members were mostly given bonuses and commission. I, working as a sales assistant, had some other options. I was given the choice of reward. For example it could have been a bonus, day off or opportunity to develop my skills by attending qualification raising courses. In addition, every month the employee of the month, was rewarding with the option of arranging their own work schedule for the next month. This reward became a great motivator, making employees working harder and better.

Did it differ for different groups? How was ‘’fairness’’ or ‘’equity’’ ensured?

Yes, there were two departments in the company, the office department and the service department. The office department was usually offered financial rewards such as bonuses and commission. Why? Because I do not think that people working there really needed any qualification courses. They had also stable hours of work, so arranging their own work schedule was not really a tempting prospect.

In this organisation, everyone was rewarded in the same equal and fair way as everyone was rewarded for what he/she hae worked for.

Do you think that Chief Executives should still receive large bonuses even if the organisation that they have led has underperformed?

No, I do not think that Chief Executives should still receive large bonuses. Their main duty is to lead the organisation to be successful. If the organisation that they have led has underperformed, it means that they did not carry out their duties. The bonuses are rewards. If the sales assistants do not fulfil their duties, then they should not receive the reward. And I think in every organisation there should be no exception regardless of job status/position.

I think the main argument for the chief executives to still receive large bonuses is their position in organisations and the level of responsibility. They are usually responsible for making important decisions, advising the board, leading the organisation to top performance etc. I believe they are the ones who deserve large bonuses most.

In conclusion, reward is a very important part of every organisation, it can be the foundation of their success. Employees should receive a reward to show them that their hard work has been appreciated. Receiving rewards is also a great motivator. If employees know that they are going to be rewarded, they work harder and better to meet their objectives. Rewards should be received only for hard work, if there is evidence of under performance then there should be no reward regardless of job position.

References:

-         Beardwell, I., Holden, L. and Claydon, T. (2004) Human Resource Management: A Contemporary Approach. Forth Edition. Harlow: Pearson Education Limited.

-         Management Help. (2010) [Online], Available at: http://managementhelp.org/chf_exec/ed_rspon.htm [Accessed: 15th April 2011]

-         Management Help. (2010) [Online], Available at: http://managementhelp.org/chf_exec/chf_exec.htm [Accessed: 15th April 2011]