Financial and Non-financial Rewards - Assignment Example

HUMAN RESOURCE MANAGEMENT ASSESSMENT QUESTIONS NAME Course Professor Institution Date Question one Media sales person in charge of selling advertisements for a local radio station Rewards are part of the factors that motivate people to work effectively and efficiently. It is the responsibility of the management to come up with a fair reward system that shall keep the employees focused on improving performance and staying with the organization for long. An appropriate reward system will incorporate both financial and non-financial incentives for it to remain relevant and cut across the expectations of different kinds of employees. Financial Rewards Bonus: This is an incentive attached to meeting the agreed targets. It is a form of appreciation for working hard as an individual or team. The media company usually informs the employees the amount of the bonus it will pay if they exceed a certain level of selling advertisements, and it pays the money at the end of its financial year. The company gives the bonus as a percentage of the total sales once the employees exceed a certain amount of advertisement sales. Allowance: This is money an employee earns for offering services beyond the agreed standard operations. The media house has stipulated the total number of working hours per day, but it allows people to work up to a maximum of three hours overtime whose payment is an allowance. The company allows employees to enjoy this allowance if they were busy during the regular working hours forcing them to work extra hours. All the permanent employees can enjoy this benefit once the supervisor approves it. Salaries: This is the money paid at the end of the month for the work an employee performs during the month. When the company employees people, it usually gives them contracts to sign where each employee is informed his monthly salary. The salary is subject to annual reviews based on employee performance. The media company has different salary scales for various categories of employees, but its scales are competitive in attracting and retaining the best talent in the region. Non-financial rewards Promotion: The media house has an arrangement in place where it promotes hardworking employees. Accompanying the promotion is a raise in salary, and usually the employee is eligible for more allowances and bonus payments. The company conducts the promotion exercise once in a few years a move that compels employees to stick in one position for some time where they prove they deserve the promotion. Paid trips: For a long time, the company has been giving its best performing employees paid trips to different destinations. These trips are meant to enable such employees to reflect on their quality work and in return they will work harder to qualify for a similar trip in the coming year. In the end, the company ends up having an overall high performance. Usually, Management do communicate to all employees the destinations for the next trips as a way of boosting their morale. Recognition: The media house has subcontracted another company that reviews employee performance, and it recognizes those who excel through giving them a letter of appreciation. This benefit forms the basis for promoting them. A recognition exercise is an annual event and in attendance is the entire workforce including the management team. Question two There are many types of remuneration companies use to reward their staff. The most common according to (Yousaf, Latif, Aslam & Saddiqui 2014) include: Basic pay: This is money paid for working during the regular hours of operation. This pay alone does not motivate people to work harder. Therefore, in cases where the company has only the basic pay, it will employ strict methods of supervision given that employees may not be motivated by basic pay alone to work harder. The company reviews the basic pay annually based on performance as a way of encouraging the employees to work harder with an anticipation of getting the annual increment. Commission: This is the type of payment that companies give to staff employed as sales agents. Usually, the company will pay them a commission as a percentage of their sales. The higher the sales, the higher the commission each employee will receive. The company pays the commission over and above the monthly retainer payment. Performance linked incentives: These are incentives the employer gives to the employee over a certain period. They are usually directly related to output, and they are specified in the contract that employee has signed. The aim of such incentives is to improve performance and quality of production. Piece rate reward: This is a reward system where the company pays employees depending on the number of successful jobs they finish over a certain number of hours. Where an employee can finish more jobs early, he will be paid more money than those who will complete fewer jobs. This reward is suitable for people who do manual works like sewing suits. Profits related pay: Some employers have an arrangement where they share part of the company profits with their employees. This arrangement aims to entice employees to be innovative and improve their performance as a way of increasing the business's profitability. The company gives this reward once every year usually after announcing its financial results. Question 3 Higher salaries: Higher salaries have always acted as an attracting factor for highly skilled and qualified employees. Such salaries enable the employees to meet their basic needs and have excess money that they will save or use to meet esteem needs. In most cases, the salaries do correspond with the job description of the employees such that the higher the rank of a certain employee, the greater the amount of salary he will receive. Salary increments: Usually people are motivated to work harder when they anticipate a salary raise pegged to a good performance. Therefore, companies have a scheme in place that shows how employee performance will contribute to periodic salary appraisals. Once employees know that a particular company reviews its salaries periodically, they will want to be part of its workforce. Bonuses: The use of bonuses is another way companies use to attract and retain highly skilled employees. Usually, the company will spell out the amount of the standard pay and then it will inform the employees how it will pay them bonuses. The typical example is when the company pays employees a percentage of its profits as a way of appreciating their effort in generating higher profit margins. Question 4 According to the Ombudsman (2014), the minimum wages are as follows: The minimum wage for students is to be calculated as 36.8% of the national minimum wage (currently $640.90) per week. The minimum wage for adults is $640.90 per week based on a typical working week of 38 hours. The number of leave days of annually is four weeks depending on the weekly working hours. For example, a person works for 20 hours per week is entitled to 80 hours of annual leave. Each employee qualifies for ten paid sick leave days and two unpaid sick leave days. These sick leave days includes caregiving services where an employee can take an off to take care of a sick loved one. Penalty rates for: 1. Overtime: Monday to Friday, 150% for the first two hours and 200% thereafter. Overtime on Saturday and Sunday is paid at the rate of 200%. Overtime on holiday is 250% for the hours worked. 2. Working on Saturdays- 150% for the hours worked 3. Work on Sunday- 175% for the hours worked 4. Work on public holiday-150% of the normal hourly rate for the hours worked 5. Leave loading- 17.5% of the ordinary hourly rate References List Ombudsman, Government of Australia, 2014. Fair work. [Online] Available at http://www.fairwork.gov.au/ [Accessed on 7 Sep. 2015]. Yousaf, S., Latif, M., Aslam, S., & Saddiqui, A., 2014. Impact of financial and non financial rewards on employee motivation. Middle-East journal of scientific research, 21(10), pp. 1777-1783. Read More

 

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