Job Rewards Customer inserts his/her name Institution’s name Rummassah is a bakery cafe in Dubai which began its operations in 2005 and has since then enjoyed the loyalty of over a million customers. The company is a limited liability company that sells beverages such as coffee, shakes, juices as well as confectionary such as assorted biscuits and Arabian sweets such as Baklava, Ajwesh, Barasek, Cashew fingers and dried fruits…
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Research suggests that both intrinsic and extrinsic rewards are necessary in motivating employees. Traditionally, extrinsic rewards that are derived not from the work itself were considered sufficient. These include salaries, bonuses, perks, benefits, commissions and cash rewards (Thomas). The tall hierarchies and close supervision allowed managers to keep track of whether the policies are being followed and could either grant or hold back these rewards based on performance. However, workers today prefer self-management rather than close supervision and get motivated from being empowered which gives them a sense of belonging to the organization (Thomas). Hence, intrinsic rewards are largely based on the satisfaction that workers derive from the task at hand (Thomas). Therefore, intrinsic rewards entail greater commitment and initiative on the part of workers who take pride in doing their work. Although the importance of extrinsic rewards is diminishing, they are can by no means be neglected. As per Maslow’s theory of hierarchy, lower order needs such as pay and job security must first be satisfied before workers become motivated by higher order needs such as belonging, self-esteem and self-actualization. Therefore, both intrinsic and extrinsic rewards must be considered in employees’ job rewards package. Rummassah’s major problem in recent years is its high employee turnover and low level of employee morale that has often been reflected in bad attitude towards customers and job switching to competitors’ companies. Greater insight revealed that Rummassah was paying too little monetary incentives to its best performers and too much to their inefficient workers which led to the latter’s disillusionment. Most rewards were not customer focused as a result of which even poor performers were getting the same monetary incentives as good performers. Furthermore, rewards focused on length of service or seniority tends to turn compensation into entitlement. Furthermore, insights revealed that part-time employees were not been provided with stock options which made them switch to other jobs, thereby increasing costs for the company. Employees also complained about monotonous work and lack of social gatherings to break the high pressure and stress during peak periods. Considering that almost 40% of the workforce was expatriates, they could not understand local Arabic language which made them fearful of dealing with customers. Finally, there were complains of long waiting times and lack of coordination amongst the cafe staff by disgruntled customers. In view of the above problems, the organization must implement a rewards program that addresses the above issues. Performance in this case shall be based on the achievement of tasks in the job description as well as relations with other employees. Firstly, good performers shall be recognized through their picture being put up on the company’s notice board under the caption “Star of the month”. The best performer will receive a bonus of AED 300. Furthermore, the name of this employee shall be featured on the company’s website. However, research shows that simply praising the employee’s work through thank you notes has more value than employee of the month awards (Bersin, 2012). Keeping
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