Strategic planning framework and implementation

¶ … Rewards Incentive Program: Export Car Company

A properly developed reward and incentive strategy can enable employees to perform their jobs efficiently and effectively. Many people automatically assume that a compensation-based reward and incentive program is the most likely to influence employee performance and achievement on the job. However there are many studies that suggest that management should adopt other incentive programs that are non-compensatory based. These ideas are explored below.

On reward and incentive program the company could adopt is an incentive pay program, where employees are paid incentives to facilitate more business (Cocheo, 1997). The merits of a compensation-based reward program have been called into question time and time again. If this perspective were adopted it is likely that business might improve, however a pay based incentive program is often not possible or feasible as the costs associate can be prohibitive.

There are numerous other studies that suggest that a performance-based program that rewards employees solely based on performance is more likely to succeed (Lopez, 1981). This approach suggests that compensation in the form of a bonus may motivate an employee to perform well. Like the above suggestion however, if this proposal is adopted the company may not necessarily realize increased profitability due to the prohibitive nature of offering compensation based incentives only.

Another problem with compensation based only reward and incentive systems is that typically only extreme performers are rewarded (Zenger, 1992). It is important that employees are rewarded however on many levels. If only an elite group of employees is rewarded time and time again, chances are employees will perform less cohesively than if employees were all rewarded for doing their best at many different levels.

Thus, one may conclude that a comprehensive reward and incentive program that is not solely based on financial incentives is most likely to be successful for a company that exports cars. One way management can work to improve employee morale is to develop an employee of the month reward system, where outstanding performance is recognized at all levels once per month. This could be a non-compensatory reward that includes recognition, a special parking spot and a plaque. At the end of the year, if the company wanted to truly reward a single employee's exemplary performance and if the budget allowed, more elaborate incentives could be rewarded such as a car for the employee of the year.

Management can work to motivate and reward employees however on a daily basis simply by acknowledging small contributions to the organization, by thanking employees for their work, and by occasionally offering incentives such as paid time off or flexible scheduling, which many employees might appreciate more than financial rewards (Lopez, 1981). More and more employees are seeking a better work life balance. One way to boost employee morale and subsequently reward employees is to offer them incentives that allow them more time with their family or more time pursuing personal interests (Cocheo, 1997).