Cheesy Pizza Company started with the idea to deliver good food with the use of simple ingredients. It includes the sauces of all the households and the daily made dough and mozzarella. The mission of the company is to lead the food chain in every country and deliver a valuable experience to its customers. The current mission of the company is to open 10 chains in Hong Kong and Singapore by the year 2018. The company delivers a wide range of cheesy pizza keeping the traditional taste as a priority. It delivers pastries, Choco lava cakes to enhance the customer experience and make it a memorable one. The organization has a mere focus on delivering values of giving best in less and creating a working environment in which all the employees are coordinated towards achieving the mission of the company. In order to achieve the current vision, the company must establish an appropriate compensation strategy that will help in motivating and encouraging the workforce towards the goal of the organization (Armstrong, 2012).
Reward system refers to the allocation of compensation and benefits to the employees that follow the standards, rules and the procedures established. The establishment of a proper reward system helps in motivating the employees and encourages them to work harder. The employees are motivated by rewarding them the financial and non-financial incentives. The aim of providing the reward system to employees is to motivate them for higher performance by providing appreciation, which leads to an increase in the productivity of the firm. It is also used to improve the behavior of the employees towards the organization and leads to coordination of efforts towards the accomplishment of organizational objectives (Armstrong, Brown and Reilly, 2010).
The objective of developing an appropriate compensation plan is to retain and recruit the qualified personnel, which will help in increasing the return on investment and develop a competitive advantage in the competitive environment. Development of an appropriate compensation plan helps to motivate and encourage the employees as they feel satisfied and are more committed towards the achievement of organizational goals. Effective compensation plan depicts that the organization value the worth of the employees and are involved in the development of personal growth of the employees (Pepper, 2016).
Intrinsic rewards are those, which are felt by the employee itself and cannot be seen or touch. It includes the development of challenging job for the employees and providing them with the opportunity of career development. It includes creating of a flexible working environment and job rotation and job enrichment while extrinsic rewards are the one, which is provided by the organization in the form of salary, wage, bonus, recognition, praise, promotion, and certificate of appreciation (HRMP, 2018).
Cheesy Pizza Company should provide the financial reward in the form of salary, wages, paid leave, gratuity, pension, accommodation, and transport allowance. It must also provide the non-financial benefits in the form of creation of a working environment, which provides rest and lunchtime to the employees, Involvement of sports activities for the employees, attractive position, and responsibility of choice, personal assistance and sufficient leave to keep the employees motivated and develop the zeal to provide higher performance (Small business. Chron, 2018).
The company must provide a reward based on the performance of the employees. Higher rewards must be given to the employees who provide higher productivity this will help in further motivating and leading the performance of the organization in a positive direction. The company must also provide the membership-based rewards such as equal growth rate in salary and allowance, equal distribution of bonus and profit, the opportunity of promotion, grade provision based on the seniority and praise and recognition to the team or group (Workable, 2018).
Involvement of such types of reward will help the company in motivating and retaining the employees. Effective performance of employees will, however, leads to the achievement of the organization goals efficiently and effectively (Workable, 2018).
The organization must update the employee compensation strategy to recruit the best employees for the company because if the plan will not be according to the expectations of the employees they will reject the job offer because the employees believe that an appropriate compensation strategy personifies the value the organization provides to its employees (Mathis, Jackson and Valentine, 2014).
The employee compensation strategy plays a significant role in the retention of the employees. Retention of employees is considered as the major threat for the firm because the cost of training and recruiting the employees is very high. However, to retain and attract the employees it is important to have a favorable compensation strategy, which would help in motivating and encouraging the employees to work efficiently (Mathis, Jackson and Valentine, 2014).
It is observed that the company pays compensation according to gender, race, and age to avoid such discrimination it is essential to pay attention to the employee compensation strategy so that all the employees receive fair compensation and does not lead to dissatisfaction or discouragement among the employees. It ensures that all the employees receive according to their performance and avoids biases and discrimination in decision-making (Ji, 2015).
With the help of an effective compensation strategy, the organization can reduce absentees in the organization, which in turn helps the organization in increasing its productivity and achieving the objectives of the organization in an efficient manner (Bradley, 2017).
The organization must continuously update the compensation strategy plan because it helps the firm to retain its competitive workforce for the top management and the organization is able to maintain its competitive advantage over the other firms (HR Soft, 2018).
Pay structure is also known as salary structure. It is defined as the compensation given to the employees. It divides the salary into various components based upon the professional experience or employees, or grades or bands the employees are categorized under. The salary structures are decided based upon the relative internal value of the employee, which is analyzed by job evaluation, the external relatives, via market rate surveys. The main characteristics of pay structure are that they provide the rate of pay for different jobs; it depicts the scope for the pay progression via performance, competence, contribution, skill or service (Ashworthblack, 2018).
In this type of structure, there are many narrow salary ranges and multiple grades with separate structures for each employee of the organization. The structures are based upon the job functions and the occupations. For each job, structure there may be 10 job grades or 10 salaries ranges. Such type of structures is flexible and has controls. This type of structure works well in the stable organization and does not provide more power to the managers to give pay rise (The Hartford, 2018).
In this type of structure, the employees are grouped by the type of job they perform for example administrative, management, and executive rather than being break down into multiple ranges within the job type. This structure offers flexibility and has lesser controls (The Hartford, 2018).
This type of structure is used when internal equity is important and it is difficult to analyze the difference in job performance. These structures are very rigid and give very little discretion power to the managers (White and Druker, 2009).
In this type of structure, the salary is decided based on the analysis of the job market for a similar type of job. The structure has a range for each distinct type of job. The pay ranges in this structure are typically narrow to keep them in line with the external job market (Azcentral, 2018).
Establishment of pay structure in an organization is essential because it provides the organization with the external market ranges for distinct types of job and allows the organization to readjust its pay scale according to the external market conditions and helps in remaining competitive. Due to the online access of the external market, pay scales for different jobs the employees can analyze the prevailing market ranges and can demand the same. However, it is important for the organization to update its pay structure according to the prevailing market conditions and ensures that the employees receive fair pay to motivate and retain them in the organization (Azcentral, 2018).
The cheesy pizza company must develop an effective reward system to motivate and recruit the quality personnel for the organization who delivers maximum productivity to the company. In order to set up its business in Singapore and Hong Kong the company has to consider the following factors so as to retain competent personnel in the organization and able to develop its market share (Financial Management, 2016).
In designing the appropriate reward system the company must focus on the individual factors such as age, race, gender, education because it depends upon the personality of the person that which type of motivation attracts the person. Some employees get motivated from the monetary benefits while such gets encourage from recognition or appraisal in position. The company must apply the appropriate motivational theory to judge what motivates the employees more and must consider them (Bizfluent, 2017).
As it is a forming stage for the cheesy pizza company, the company must consider the size of the team and must provide the incentives to encourage them and be comfortable with the working environment of the company (Bizfluent, 2017).
The organization structure, culture, industry, market majorly affects the organization. In order to develop its market share in two new countries, the organization must focus on the culture of Singapore and Hong Kong their preferences, tastes and the expectations of the customer should be analyzed so the organization can develop its product and can able to create its brand. The structure of the company helps in attracting the employees for the organization and must design the favorable reward system for the employees (HR soft, 2017).
The economic conditions, regulations imposed by the government and the competitive factors majorly influence the reward system of the organization. These characteristics help in governing the reward to be allowed for the team members. The organization must analyze the retention rate of both the countries and must prepare their reward system accordingly. Such factors will help in analyzing how to reward the team, the type of incentives to be included and other motivation factors that will help in encouraging the employee (White and Druker, 2009).
The company must provide the reward on the specific individual accomplishments. The company must reward to the employees who have to achieve the grade instead of conducting the sales contest and then declaring the winner. Such activities create discouragement among those who are not able to achieve the goal (Bizfluent, 2017).
The company must reward the tangible results to motivate the top performers and must provide the rewards for maintaining discipline, timely completion of the task. Such rewards will motivate them to be more committed towards the organization. The company must provide the reward to the teams who are able to achieve the target and accomplish the goals of the organization (Bratton and Gold, 2017).
The organization must ensure that their structure of reward system will motivate the employees of the organization and will include intrinsic and extrinsic motivation factors to provide recognition and encourage them to be more dedicated towards the goal of the organization (Bratton and Gold, 2017).
For the successful implementation of the reward system in Singapore and Hong Kong, the company must consider the factors that help in the successful implementation of the reward system.
The company must effectively communicate with all its employees to make them understand the new reward system and benefits provided to the employees to build the desire among the employees to work efficiently, must be a good listener to understand the reaction of the employees, and can ascertain the demands of the employees (Human Resource Management, 2014).
It is required to get the approval of the senior manager on the new reward system so that it can be successfully implemented in the organization and the necessary deviations can be done at that particular time. Such actions are necessary because the development of reward requires a large number of resources and time and to avoid the wastage of resources prior approval is necessary (Greene, 2011).
An adequate amount of training should be given the line managers and the human resource manager to develop the understanding of the benefits to the employees and ensure the satisfaction of the employees. The line managers will provide the required information to the employees and will make them understand the benefits of the program (Dragana, 2016).
It is important to analyze and monitor the reaction of the employees towards the adoption of the reward system. The company must collect the feedback of the employees, stakeholders towards the implementation of the new reward system and must continuously monitor that there is a proper application of the new reward system (Study.com, 2018).
The company must involve the trade union in the process of implementation of the new reward system because their support will help the company to incorporate the change and manage the behavior of the employees towards the new reward system (Dragana, 2016).
However, the company must ensure that there is a successful implementation of the new reward system. It must be favorable for all the employees as well as the organization (Greene, 2011).
Conclusion
From the above discussion, it is concluded that an effective reward system helps in achieving the organization goals effectively and efficiently. It motivates and encourages the employees to work efficiently and achieve the large market share. Cheesy Pizza Company focuses on expanding its market share by developing its market in Singapore and Hong Kong. To attain its objective the company aims to develop a proper reward system, which will help in motivating and encouraging the employees and integrating their efforts towards the organization goals.
It is observed that an effective reward system helps in retaining the employees of the organization and motivating them to achieve the objectives of the organization. The organization must carefully design the reward system so that the organization can control the behavior of the employees and make them understand the change in the reward system. The reward structure must be designed in such a way that it maximizes the benefits provided to the employees. In designing appropriate reward system the company must consider the team size, pay rate among the competitive firms so as to retain the employees and able to recruit talented employees.
The effective reward system depicts the worth of the employees to the organization. It helps to recruit the best employees and retain the existing employees who will focus on achieving maximum efficiency. The organization must ensure that the new reward system is effectively communicated to all the members of the organization to understand their behavior towards the change in the reward system.
References
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