Organizational Human Resources Awards Program the Objective

¶ … Organizational Human Resources Awards Program The objective of this study is to respond to the following scenario: The writer of this work is charged with the role of the director of Human Resources in a fictitious company. The vice president of the Human Resource department has requested that you develop an organizational reward program for your company. All departments will adhere to the program.

Included in the issues to be addressed are the type of rewards, reward criteria, the reason each criteria is necessary, distribution criteria, desired outcome, pay for performance and risk and benefits of the program. The development of an organizational award program involves seeking support and commitment from the appointing authority and using input from employers for program development.

The organizational mission and values are incorporated for the purpose of determining what accomplishments and behaviors will be rewarded and a motivation survey utilized for the determination of what incentives that the organization's staff values. I.

Identification of Rewards The rewards should be such that are given for "significant outstanding performance that advances unit goals and should be tied to a specific accomplishment." (University of Boulder Colorado, nd) Rewards are reported as most effective "when they are meaningful to the individual." (University of Boulder Colorado, nd) Rewards should be designed in a way that "reflect the unique nature of the unit's work culture and organizational structure." (University of Boulder Colorado, nd) Rewards are reported to be such that should not be substituted for "A competitive salary plan." (University of Boulder Colorado, nd) Rewards are stated to be other than "adjustment to base salary, supplemental compensation or variable pay programs." (University of Boulder Colorado, nd) II.

World-At-Work Total Rewards Program The World At Work Total Rewards Program is reported to include the components of: (1) compensation; (2) benefits; (3) Work-A-Life; (4) Performance and Recognition; (5) Development; and (6) Career Opportunities. Each of these components are described as follows: (1) Compensation: Pay provided by an employer to an employee for services rendered (i.e. time, effort and skill). Includes both fixed and variable pay tied to levels of performance. (Work-A-Life Rewards Program, 2011) (2) Benefits: Programs an employer uses to supplement the cash compensation that employees receive.

These health, income protection, savings and retirement programs provide security for employees and their families. (Work-A-Life Rewards Program, 2011) (3) Work-A-Life: A specific set of organizational practices, policies and programs, plus a philosophy, that actively supports efforts to help employees achieve success at both work and home. (Work-A-Life Rewards Program, 2011) (4) Performance: The alignment of organizational, team and individual efforts toward the achievement of business goals and organizational success. It includes establishing expectations, skill demonstration, assessment, feedback and continuous improvement.

(Work-A-Life Rewards Program, 2011) (5) Recognition: Acknowledges or gives special attention to employee actions, efforts, behavior or performance. It meets an intrinsic psychological need for appreciation of one's efforts and can support business strategy by reinforcing certain behaviors (e.g., extraordinary accomplishments) that contribute to organizational success. Whether formal or informal, recognition programs acknowledge employee contributions immediately after the fact, usually without predetermined goals or performance levels that the employee is expected to achieve.

Awards can be cash or noncash (e.g., verbal recognition, trophies, certificates, plaques, dinners, tickets, etc.); (Work-A-Life Rewards Program, 2011) (6) Development: A set of learning experiences designed to enhance employees' applied skills and competencies. Development engages employees to perform better and engages leaders to advance their organizations' people strategies. (Work-A-Life Rewards Program, 2011) (7) Career Opportunities: Involve the plan for employees to advance their career goals. May include advancement into a more responsible position in an organization.

The company supports career opportunities internally so that talented employees are deployed in positions that enable them to deliver their greatest value to the organization. (Work-A-Life Rewards Program, 2011) III.

Work-A-Life Organizational Rewards Inventory The Work-A-Life Organizational Rewards Program Inventory is reported to include programs that provide recognition through: (1) service awards; (2) retirement awards; (3) peer recognition awards; (4) spot awards; (5) managerial recognition programs (6) organizational-wide recognition programs; (7) exceeding performance awards; (8) employee of the month year awards; (9) appreciation luncheons, outing, and formal events; (10) goal-specific awards including those for quality, efficiency, cost-savings, productivity and safety; and (11) employee suggestion programs. (Work-A-Life Rewards Program, 2011) IV.

The Star Model The work of Schuster and Kesler (nd) presents the "Star Model" of the organizational employee awards program shown in the following illustration labeled Figure 1. Figure 1 Star Model Source: Schuster and Kesler (nd) The star models presents a strategy that examines the organizational: (1) capabilities; (2) people practices; (3) structure; (4) process and (5) metrics awards. The questions that are posed in the development of this organizational rewards program model include those related to what talent the organization needs and what HR practices and routines are critical to the organizational capabilities.

Also addressed is how the organization will grow and compete in the markets and how decisions are made as well as the management processes that need to be defined. It is reported that the wrong incentives will only serve to "make matters worse than no incentives at all." (Schuster and Kesler, nd) It is reported that the primary elements of rewards systems design are: (1) base pay; (2) variable compensation; (3) fringe benefits; and (4) compensation governance including performance management.

The issues that must be addressed in compensation philosophy and objectives are reported to include: (1) Should compensation be a driver or a reinforcer of behavior? (2) Where does the firm wish to position itself in the labor market (at what percentile)? (3) What portion of total rewards will be distributed in cash, equity and social benefit programs? (3) How much leverage should variable rewards have (how much pay should be at risk at different levels.