The Purpose of Job Evaluation and Reward System and What It Is Designed for - Essay Example

Name Tutor Course Date The total reward system The total reward system is a comprehensive reward program that entails combining threes main element witch employees regard highly in relation to their employment; benefits, work experience and compensation. In modern business environment, key players strive to survive and enhance the prosperity of their enterprises based on their employees’ productivity. This is a modern holistic approach, in which the employers seek to service the needs of their employees. This will facilitate teamwork and do away with any probable worries that employees may have about their welfare. Thus, the work experience is suitable and conducive. Therefore, the productivity is accelerated given that the culture, benefits and compensation are well taken care of and the entire workforce concentrates their attention to transaction business and executing their duties. In essence, a successfully implemented total rewards system makes it possible for organizations to create a powerful benefit program structure. This benefit structure is not only meant to motivate the employees, but also to refresh a balance between the organization expenditure and workers appreciation as well as engagement. Conclusively, the total reward system is entirely implemented in a manner that promotes a win situation for both the employees the organization (Legacy Bowes group et al). The purpose of reward system and what it is designed for The purpose of a total reward system varies from various types of organization depending on the nature of enterprise and the kind of employment offered. Efficient total rewards systems steer an organization’s competitiveness and create lasting conducive employee relation hence retain workers. In addition, the total reward system serves the purpose of reducing turn over as well as reinforcing the public of the organization to the future employees and major stakeholders. Given that workers are most significant resource that any organization has, keeping them at optimal productivity is a key priority for the manager hence competition to win over and retain best employees is achieved through effective total rewards systems. However, for the total reward system to work, the employer and the employee focuses on a “beyond monetary rewards strategy” which involves evaluation of the non-financial rewards that an employee acquires in the course of duty. Through this approach, all reward elements are encompassed into the system to serve its purpose to the expectation o both parties. The main reason why most organizations adopt a total reward system is evident popularity of this practice in today’s ever-competitive environment. Furthermore, it is becoming evident that wages and benefits are ever increasing and organizations have to come up with a way to check to remain relevant and profitable. Thus, alternative rewards are brought in through the total rewards system to ensure employee motivation as well as excellence in work productivity. Every corporate integrates its total reward system so as to make it cost effective and successful. Overall, benefits must not translate to daunting costs for the organization, and the process poses the task of eliminating any probable inefficiency to make the expenditure of every dollar count or rather profitable. Modern approach to the total reward system is technically challenging since the strength of the economy has made the job market quite tight. This employees seek much from their employers whereas the organizations ought to get more them. Given that a total rewards system is vital for modern organization small business are adopting a reward verse recognition model to achieve the goals of the total rewards system without compromising the interests of stakeholders involved. In fact, most small business adopts the recognition benefits program to keep costs low. As earlier stated the purpose of the rewards system is to reward the performance of employees and motivate them either at the individual or group level. In reality, these rewards are separate entities form the salary, but could be of monetary value in nature, which generally increase job competitiveness. It is noteworthy that recognition differs from rewards to some extent although the design and maintenance of these programs are quite alike. For a total rewards system to achieve it purpose the organization must come up with means of implementing cost effective measures such as retaining employees. Retaining employees is very fundamental since it cuts various costs, which are encountered in acquiring new employees. These costs include employee training cost, job orientation costs, and service inconsistency due to shifting of employees. In addition, appropriate rewards serve to discourage absences hence there is a smooth and constituency delivery of services. Absences create workplace stress and dent the execution of duties. Therefore, a proper of understanding on how to carry out a reward system is necessary in determining the person to be rewarded, what to be rewarded and the appropriate time to reward to enhance employees’ productivity (Hurd, Barcelona and Meldrum). Effective rewarding system can be bear remarkable results for an organization since it is a double-edged sword in that it success benefits both the employer and the employee. The valuable use of rewards could see an organization rise to higher scores since employees are encourage horning their skills, which are necessary for an organization to grow. In addition, the rewards serve as an encouragement to the individuals to develop a positive altitude towards the organization to continue working for the organization. As a result, the organization can provide indirect rewards such as paying for courses which the employees need to undertake in order to acquire more expertise in a particular field. The advanced courses are profitable to the organization since the employees will utilize the knowledge and skills acquired to achieve the organizations goal on service delivery. In addition, the employees also achieve their personal goals and skills set which make them more competent and market in job market. Through this kind of rewards program, an organization can be sure that its employees are passionate about their work and have affective commitment to their duties hence effective implementation and increased productivity. Research on this subject has revealed that affective commitment could be possibly strengthened by rewards, which promote employee perceptions of being valued and given control over the scope of work. Lastly, reward systems can also be effective in recruiting efforts. In essence, the satisfaction of an organization’s employees is a great asset that can draw new employees to the organization making it a workplace of choice for the best employees. This will result from the image the organization will be able to get out of the satisfaction of its employees. The employees will in turn act as ambassadors of its satisfactory system. This could be viewed as a consequence that comes when customers are happy with company’s product; they pass information to other consumers who come after the product given its popularity and quality. Likewise, an organization with effective rewards could attract top employees simply through its happy, satisfied employees. An organization with outstanding rewards system will always stand out of the rest and shine at the top of the competitive environment. Truly, the establishment of an organization’s reward structure is vital to its success. A success reward system facilitates an organization’s efforts to create a virtuous circle whereby it displays an image that makes it an attractive workplace and win over the best and brightest (Duchon, n. p.). How to operate it the model of total reward and its benefits and approaches to total reward design a reward program To operate a model of total reward system, it is substantial to understand the various types of rewards available as options in the implementation. Furthermore, understanding the way various individual employees perceives and values different rewards is fundamental in management and ought to be considered in order to get it right from the initial stages of laying the rewards structure. There are various types of rewards, extrinsic rewards, monetary rewards non-monetary performance based rewards, membership based rewards non-traditional rewards and intrinsic. The extrinsic rewards refer to rewards that are related to employee’s behavior, time, skills and roles in a company. On the other hand, intrinsic rewards are those that are derived from an employee’s participation in a project or in the cause of duty that makes them feel good about the accomplishment they have achieved. Monetary rewards involve monetary increments and are offered in form of salary increments or bonuses such as health care premiums or pension. However, there are direct and indirect monetary rewards depending on the nature of the reward. Nonmonetary rewards involve incentives by the organization to make the work environment most conducive and may involve a good choice of furnishing, prestigious parking place, choice of furnishings and a strategic office location. Performance-based rewards involves rewards that given on the worker’s ability to meet some agreed upon standard by the employer based on evaluations after a given period of time. On the other hand, membership based rewards are entirely based on being a member of an organization and entails yearly cost of living increments to a salary base or support for a certain policy. Nontraditional rewards involves individualized work schedule. There are four methods involved in individualization, workweeks, fulltime, staggered daily schedules and working from home. This task will focus on the design of a monetary reward system for General Motors sales personnel in particular. The approach used will be aimed at achieving the following facets compensation, benefits, performance recognition, development of career opportunity, work life balance. Since the organization has many employees under the sales department, this scope will be given more focus. First, the management ought to come up with a basic salary, which is the initial pay compensation that an employee will receive upon recruitment and monetary benefits such as pension’s scheme and health allowances. The employees will be evaluated after a period of one year and awarded performance recognition award. This will be upon meeting the set standard of performance it could be customer relations or number of sales fro sale personnel (Atchison, Belcher & Thomsen, n. p.) The evaluation is to be tied with career promotion such that, upon achievement of the set standard leads to a promotion to a higher level through scholarship to take an advanced course. Thus, an employee will enjoy career development in the course of work. Lastly, employees need a work life balance hence the need for nontraditional rewards such reduced workweek. The management will set up four options for a balance work life to suit various individuals. An employee may choose among staggered daily work, reduced workweek, flextime and working from where applicable as explained earlier. The purpose of job evaluation Job evaluation is simply an assessment of the work progress of an employee over a certain period. The concept is based on equal remuneration fro work done and extra pay fro more important work done. The objectives of job evaluation are based on rational wage range and the agreed upon standards with a means of comparing jobs and the equivalent pay rates. These are maintained for successive promotion of employees. Works Cited Atchison Thomas, Belcher David, Thomsen David. Installing Job Evaluation in Your Organization ERI Economic Research Institute. N.d WEB 20 July 2012. Duchon, Michael. Compensation: Total Reward Plans that Attract, Retain and Motivate. The constructionbusinessowner. N.d Web. 20 July 2012 Hurd, Amy, Barcelona, Robert and Meldrum, John. Recreation managers can use rewards to improve employee motivation, retention. Human Kinetics / Excerpts n.d Web. 20 July 2012. Legacy Bowes group. Total Rewards System (TRS) n.p, 2012. Web. July 20, 2012. Read More