Performance Reward Project - Boost Juice Bars - Case Study Example

Performance Reward Project Report Name: Instructor: Table of Contents Introduction 3 Executive Summary 3 Summary of Key Issues 4 Recommendations 5 Recommendation 1: Issues Relating to Stephanie – The Team Leader 6 Recommendation 2: Issues Relating to the Owner – Melanie 8 Recommendation 3: Issues Relating to the General Staff 8 Conclusion 12 References 12 Introduction In order to improve their performance, most businesses are slowly adopting a lot of employee motivation strategies so that they can do their best at work. One of the strategies adopted by companies is the reward of performance to employees with regard to their individual performance. This involves different approaches as is decided upon by a given company. Such strategies could be in form of profit-sharing, bonuses, flexible work schedule, work advancement, increased base wages and increased salaries as well. In line with the above brief, this paper therefore seeks to propose different performance reward strategies that could be adopted by Boost Juice Bars so as to help solve the situation presented. Those proposals range from the improvement of the feedback system to the least of tactics such as thank-you notes to the employees. Executive Summary For any given organization, reward management issues can cause tremendous growth and development of the organization; or better still, such issues could cause the smoothest of running of that particular organization (Terry, John & Sons, 1995). In the case of Boost Juice Bars, certain issues have been noted with regards to the reward strategies in the organization that have gone a long way in having an impact on the day-to-day running of the business. These reward strategies have been centered on three main stakeholders i.e. Stephanie (the newly appointed team leader), the common staff of the organization and Melanie (the owner of Boost Juice Bars). In an attempt to address the seemingly dire situation, an analysis of the situation at hand, there is need to review the reward systems of the business being applied in its operations currently and then proper recommendations made so as to correct the situation. It is as a result of this that this paper seeks to propose some of the possible recommendations that could be put in place in terms of day-to-day operations of Boost Juice Bars for there to be a turn-around in its performance. These recommendations range from introducing and implementing a 3600 feedback system, providing effective in-house training to team leader and the team members, performance evaluation, exchange of views on achievements within a specified period of time, introducing a review system, performing a job analysis among many other recommendations. Summary of Key Issues In general, there are three main stakeholders at Boost Juice Bars whose performance directly affects the organization i.e. Melanie, Stephanie and the general staff. The problems related to Stephanie as relayed by the case study could be solved by introducing a 3600 feedback system as well as by providing a one-on-one training to that team leader so that she may understand her new leadership roles clearly. The problems of the Franchise Owner, Melanie, could be solved by the same feedback system proposed above so as to ensure that any response from clients is relayed to the owner for proper decision making functions. The entire organization’s staff and operations could be improved by being frank with the employees in terms of their performance both when it not up to the task and when it is excellent. Moreover, duty rosters should be organized conveniently with regards to matching the competencies of the employees so that work is efficiently done. Recommendations What has been the most common misconception amongst business owners and other organizations about performance rewards is the belief that money is the most effective form of reward in a workplace setup. Whereas it is true that money is one of the forms of rewards, it is entirely untrue to say that it is the most effective (Shields et al., 2007). In designing a total reward strategy for Boost Juice Bars, in addition to behavior and performance discussed above, it is prudent to consider other important factors i.e. the internal business factors such as the business strategy, the organizational values, the organizational structure and the workforce, external factors such as the prevailing economic environment, the market trends as well as the social considerations and finally the planning and implementation of the reward strategy which includes the reward objectives, reward philosophy and principles and the reward structure (Routledge & Francis et al., 2009). Once those three considerations have been dealt with, the only thing that remains is the implementation stage where the reward strategy is now put into action at least practically. The four key steps that could be proposed for Boost Juice Bars in designing an effective reward system could literally involve establishing crystal-clear objectives to be achieved in the end, developing an accountable and verifiable measurement system, giving the employees the power that they need to help these objectives to be met and finally making some value out of the rewards set in place (Swiss et al., 2005). Recommendation 1: Issues Relating to Stephanie – The Team Leader From the case study, Stephanie the team leader at Boost Juice Bars seems to complain about her roles as the team leader not being specified clearly by the Franchise Owner, Melanie. As may have been mentioned in the proposal, this has consequentially led to her making a decision to put more of her concentration on store cleanliness and literally quizzing staff over their product knowledge at work. In view of this reality therefore, it is highly recommended that the Franchise Owner takes into account the possibility of ever taking the team leader through a capacity building process that will not only help her perform her leadership roles effectively at Boost Juice Bars, but also ensure that she retains a good working relationship with the rest of the staff members so that the overall output of the Franchise could as well be positively impacted. This kind of training is expected to go a long way in imparting the pre-requisite leadership skills such as taking initiative and responsibility in the course of her work. Such occurrences as concentrating only on two specific areas of specialty (store cleanliness and product knowledge), neglecting some staff members who do mistakes repeatedly as well as the feeling of wanting to please every one of the staff members shall definitely have to be addressed through these capacity building strategies on the team leader (Terry, John & Sons et al., 1995). Complaints also arose with regards to lack of feedback especially from her both with regards to her performance in her new role at the franchise. This is apparently what made her resort to concentrating only on store cleanliness and product knowledge. This report therefore recommends that a three hundred and sixty degrees feedback system be set at the franchise. This should not only be meant for providing feedback to the team leader, but also to the entire human resource at the franchise; which of course includes other staff members within the organization (Shields et al., 2007). A common complaint from many employees especially from the infant organizations and firms is that they are not appreciated at their places of work. This consequentially leads to burnout amongst the employees; which is not necessarily a healthy thing if the success of the concerned organization is anything to go by. In Boost Juice Bars therefore, the feeling of being appreciated therefore needs to be there for employees not to experience burnout in the organization. Tied to this fact, the franchise are supposed to be very careful with the way they actually reward their employees since the break and make point of any organization has always been and still is the absence of and or very little regard to appreciation of employees. Through this comprehensive system, it is highly projected that the entire organization’s human resource will realize whether they are actually on the right track or not. If they are, then they can always realize their mistakes and make corrections as soon as possible. Additionally, this feedback system is projected to be a strong source of intrinsic motivation not only to the team leader – Stephanie, but also to the entire organizational staff (Shields et al., 2007). This fact arises from the theory that human beings are naturally motivated by the recognition of their efforts; otherwise, they may tend to retract. The 3600 feedback system alone will be capable of making Stephanie feel that her services and efforts at the franchise are actually being recognized. As a result, she will somewhat tend to find some form of direction as far as her exact roles in the franchise are concerned. Recommendation 2: Issues Relating to the Owner – Melanie The case study insinuates that the owner of Boost Juice Bars, Melanie, equally has some complaints as far as the sharing of the secret-shoppers’ feedback is concerned. Like it may have been mentioned before in this report, a comprehensive feedback system is critically important in ensuring that information is delivered in time and accordingly so that it may be acted upon as early as possible. This report therefore recommends to this end that the 3600 mechanism discussed in the preceding section be extended even to this situation. Generally it is evident that this lack of this system in the franchise is essentially responsible for the apparent disconnect that does exist which seems to be the causative agent of the absence of motivation among the staff of the franchise. In this case, the secret shoppers are required to provide some feedback about their experience at the franchise premises in terms of store cleanliness, product knowledge by the staff, friendliness of the staff, customer experience, staff energy/ enthusiasm, handling of money and the wellbeing WOW factor. In order for most of these performance indicators to be acted upon and therefore bear some fruit, it is only prudent that they be shared with the overall boss of the franchise so that he can give some form of direction on the way forward (Geary & Allan, 1995). That is essentially why it is recommended that such feedback should be shared with Melanie, if any rejuvenation of the functionality of the franchise is anything to go by. Recommendation 3: Issues Relating to the General Staff Critically assessing the case study about Boost Juice Bars in terms of its general staff, it is apparent that there are a lot of issues surrounding extrinsic motivation. Basing argument on the Extrinsic Motivation Theory, it was discovered that there indeed lacked extrinsic motivation amongst the organization’s staff. Even though it is critically important for employees to be intrinsically motivated for them to love their job, extrinsic motivation is also necessary (Geary & Allan et al., 1995). In fact, human beings are naturally extrinsically-motivated in nature. It is therefore recommended that something be done about this. According to Thomas, William & Carl (2001), there are a variety of other rewards that are available for businesses and organizations to adopt. Some of these include social reinforcement e.g. praises and involvement, learning and development opportunities, merchandise such as gifts, vouchers, debit cards and online catalogue points, symbolic awards such as certificates, plaques, flowers, letters, thank-you notes, hampers, t-shirts and company umbrellas and leisure entertainment such as tickets for theatre and sporting events, corporate boxes and sky-diving. Nielsen et al., (2013) argues that there are two key factors to consider when setting up a reward system i.e. the behaviours and performance of the employees and the management. It is however of importance to note that of common consideration is the performance rather than behavior. In rewarding given behaviours, the very first thing for Boost Juice Bars to do is to first of all identify those behaviours that are necessary for it as a business (Thomas, William & Carl et al., 2001). It is extremely misleading to see many business owners assuming that compensation is the backbone of reward systems. Whereas this is not entirely wrong, it is not entirely true. The right strategy should however take note of an incentive compensation plan which is directly connected to the business goals of a particular entity at a specific period of time. It has almost been forgotten that such other forms of reward systems as some forms of ownership may also be necessary. In a strategic reward system, benefits is also a form of reward in its own right (Nielsen et al., 2013). This comes with a major purpose of attracting, retaining and motivating employees. It is therefore of great significance that Boost Juice Bars considers matching the benefit levels of its competitors and/or even exceed them if it is by any chance interested in restricting poaching of its employees. This partly explains why most organizations are currently running to professional consultancy firms that provide a variety of pieces of advice on performance reward systems. Boost Juice Bars ought to follow suit. To begin with, it is recommended that a comprehensive performance evaluation mechanism be put in place in Boost Juice Bars so that those employees who are not fully committed to their work can be clearly distinguished from their counterparts who are seriously dedicated to their work. It was noticed for example that at Boost Juice Bars there was no clear-cut differences in terms of rewards between those who worked tirelessly hard to ensure good performance and those workers who are usually late for their shifts, forget product recipes, or do not serve customers as promptly as required. It is recommended that the owner of Boost Juice Bars, Melanie, lays down reward strategies (either financial and/or otherwise) with which those employees who perform exceptionally well in their work are appreciated. Some of the non-financial reward strategies that Boost Juice Bars could adopt include verbal and written appreciation of outstanding employees, organizing for opportunities for further studies and trainings to such employees so that they could advance in their studies, providing them with such gifts as certificates, letters, flowers, gift hampers, company umbrellas and caps, providing them holidays, tickets to theatres and sporting events, sky-diving, flying among many other options (Routledge & Francis, 2009). In fact, such strategies are highly recommended to be made to be part and parcel of the organizational culture of Boost Juice Bars so that they are permanently engraved in the hearts and minds of all the employees and other staff of the organization. The financial reward strategies that could be adopted by the Boost Juice Bars include but are not limited to direct financial gifts, increased base pay, inclusion of bonuses in overall pays and other financial incentives. Secondly, it is also recommended that Boost Juice Bars considers providing employee stock plans for its own employees who show competence and dedication at their work. Through this plan, the organization shall allow such employees to invest in the organization’s stock by buying their stock at an amount that is slightly less compared to the current market value. According to Swiss (2005), this should go a long way in ensuring that the employees are motivated to do their best at work; especially knowing that if the organization benefits, then they benefit too. Much as it may be taken for granted by many organizations, this strategy can become one of Boost Juice Bars’ best ways to help revitalize its reward systems in overall. Another key recommendation on the side of employee reward system is having the best performing employees enjoy paid time offs. By so doing, the company could lure the employees’ extra input into the organization’s activities. Here, employees are awarded paid time off within which they can enjoy themselves out of work without necessarily their pay being shredded. It should be noted that almost, if not all, of these recommendations are aimed at boosting the extrinsic motivation of the employees which consequentially will automatically cause intrinsic motivation in the affected employees in Boost Juice Bars. Conclusion In conclusion therefore, business enterprises (Boost Juice Bars in particular) ought to know that for employees to perform even better at their work places, they ought to be motivated both intrinsically as well as extrinsically. These reward systems are aimed at ensuring that employees are attracted, retained and motivated. To this end therefore, it is equally prudent that the ownership of Boost Juice Bars carefully considers the rewards and strategies used and to also ensure that those rewards are connected to the employees performance. It is however crucial that the rewarding of performance remains a continuous process that should not only be done at specific times, but all the time. In fact, it should become part of the organizational culture for any given enterprise. References Aubrey, C.D. (2nd Eds.). (1999). Bringing out the Best in People. McGraw-Hill, 1999. ISBN 978-0071351454. Daniels, A. (4th Eds.). (July 2004). Performance Management: Changing Behavior that Drives Organizational Effectiveness. Gary, C., John, W., & Sons, Inc. (2009). Performance Management - Integrating Strategy Execution, Methodologies, Risk, and Analytics. ISBN 978-0-470-44998-1. Geary, A.R., & Allan, P.B. (2nd Eds.). (1995). Improving Performance: How to Manage the White Space in the Organization Chart. Jossey-Bass. Nielsen, P. A. (2013). Performance Management, Managerial Authority, and Public Service. Routledge, T., & Francis, G. (2009). Journal of Organizational Behavior Management. Published quarterly. Swiss, J. E. (2005). 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