These awards would serve as recognition for teams that have done an outstanding job. If these awards are based on measures that require total group contribution -- macro-level output measures -- then they will be more effective at fostering teamwork. This is important to overall corporate performance since that performance is directly related to the ability of different groups to function in unison towards a common objective.
Intrinsic rewards are also critical to FedEx Express. As views in academia are mixed on whether intrinsic or extrinsic rewards are more effective, both are used in this model (Urdan, 2003). The job can be somewhat monotonous. Employees with frequent customer interaction can gain intrinsic rewards from social interaction (couriers, sales people) but employees with low levels of interpersonal interaction on the job will also need to have intrinsic rewards as part of their package. By building a number of intrinsic rewards, employee engagement will increase and this will result in an increase in productivity. For most positions, quantitative measures are used. If employees have access to this information, they can measure their own performance, feel motivated to make improvements, and feel as though they have control over their own success on the job. The employees can also gain satisfaction from feeling part of a team. Team-building exercises such as company barbeques can enhance this feeling, as can the creation of a strong corporate culture that unites all employees.
This total rewards system is geared towards improving organization organizational performance. Employees are motivated at an individual level to outperform themselves,...
There is also corporate-wide motivation as well. Building a strong corporate culture and sense of mission among the employees will tie each of these rewards together and oriented employees intrinsically to build the best company possible, in particular vs. their main rivals in the courier and freight business. Business and organizational growth is fostered by the use of quantitative measures at every level, because those measures can be used as benchmarks, specifically when an individual or group is measured against prior performance. Improving on prior performance inherently leads to growth. Employees are engaged by the cultural and teamwork elements, as well as by the high degree of interpersonal interaction that many positions within the company afford.
Works Cited:
Wilson, T. (2003). Innovative reward systems for the changing workplace. New York: McGraw-Hill.
Burke, W., Lake, D., & Paine, J. (2008). Organization change: A comprehensive reader. San Francisco: Wiley.
Ingram, D. (2010). What are the elements of a total rewards system? eHow. Retrieved June 3, 2010 from http://www.ehow.com/about_5484256_elements-total-rewards-system.html
Williams, M., Brower, H., Ford, L., Williams, L. And Carraher, S. (2008). A comprehensive model and measure of compensation satisfaction. Journal of Occupational and Organizational Psychology. Vol. 81 (4) 639-668.
Urdan, T. (2003). Book review: Intrinsic motivation, extrinsic rewards, and divergent views of reality. Educational Psychology Review. Vol. 15 (3) 311-325.
