Professional Documents
Culture Documents
PSYCHOLOGY
Submitted To:
Batch:
Submission Date:
2015
Submitted By:
Wajid Ali
3335
Nabita Ishtiaq 3353
Rana Tassadaq 3316
Reward Management:
Reward management is concerned with the formulation and implementation of
strategies and policies the purposes of which are to reward people fairly, equitably and
consistently in accordance with their value to the organization and to help the
organization to achieve its strategic goals. It deals with the design, implementation
and maintenance of reward systems (reward processes, practices and procedures)
which aim to meet the needs of both the organization and its stakeholders.
Reward is special payments for special work. Reward refers to all forms of financial
returns and tangible services and benefit employees receive as a part of an
employment relationship.
Fairness is important in reward allocation process and to retain good employees in the
organization manager must be concerned about fairness
Customer satisfaction
Work quality
Problem solving
Work quantity
Attendances
Trust in management
Ability to pay
The performances relating to rewards are very important to link. It is used, to increase
employees morale optimistically. It also enhances confidence level and job
satisfaction because of feeling of job security. On important implication of it is that
employees performance can be measured continuously which forces employees to
work harder and harder to perform better and also increase organizations productivity
positively. Above mentioned points also give a fair idea to employees that how
organization system is working with rewards relating to their performance pattern
which reduces bottlenecks and ambiguity to all levels.
and its competitors are trying to remain highly competitive in every field. Research
methodology, case study design, data analysis, Results, Measurement system
Summary and references are in it.
REWARD MANAGEMENT SYSTEM:
Coca Colas management is willing to use top managerial expertise because of its
superior brand image in the market. Customers are happy to buy its beverage products
as well as competitors are also conscious to bench mark its managerial competencies.
Coca Colas rewarding system to employee is excellent as they are caring with
excellent rewarding parameters just to retain, motivate and influence employees
towards organizational goals with their best potential utilization. They are rewarding
relating with employees performance in a way to increase productivity and
effectiveness.
They are using in directly different motivational aspects like Maslows hierarchy of
needs, ERG theory and two factor theory of Hurtz Berg. But more importantly they
are not specifically using one of them; they just relate their main concepts with their
reward system to define it properly.
FINDINGS
Main parameters used as a base of reward system
Sales rewards
Supporting practices
Safety
Re-creational activities
So all above parameters are used by Coca Cola to make their reward system practices
well in the market, object is to make their employees feel comfort, satisfied,
motivated towards achievement of organizational tasks, competent to perform to the
extent to attain organizational mission and vision terminologies and compete with
outside rivals successfully. Because the management believes that if employees are
loyal to the organization then they perform better to the way to overcome any
competitive goal with accordance to desired results with remarkable customer
satisfaction.
Because quality is the whole mark for Coca Cola as customers demands high quality
with greater innovation in tastes. Customers tastes and preferences are no doubt
change dynamically; competition is increasing day by day, so all such things demands
greater performance of employees and Coca Colas human resource management is
very conscious to overcome this challenge by effective rewarding of both monitory
and non-monitory.
According to our study, which we conducted in our previous semesters form internal
employees of Coca Cola, the higher management more love to have non monitory
rewards like wise. Achievement, Feelings of accomplishment, Informal recognition,
Personal growth, Status, while lower management are more thirsty to have rewards
like incentives, bonuses i.e. have more curiosity to take cash rewards. Maslows
theory can be best define social, self esteem and self actualization stage employees
have inquisitiveness to take intrinsic rewards while other ones physiological, safety
needs employees are more attracted by cash rewards of any kind.
More importantly, Coca Colas management design superbly their reward system, just
for the sake to overcome employees thirst, mean to say sometimes employees only
work hard when they are being rewarded but Coca Colas reward system is distributed
by a mixture of both rewards monitory and non monitory that is one employee some
times get intrinsic rewards in terms of appreciation, status and some times extrinsic
one. So, outstanding managerial expertises are involved to equalize system to perform
better.
Grade jump
Designation change
Financial aspects
Career grooming
Mission
Goals
Head of
Department
Organizational goals
Unit office
Locations PGM
Functional heads
Direct reports
Performance objectives
supervisors
Employees
Performance Standards:
According to our practical analysis, we came to know that Coca Cola International is
using better linkage of mission and vision to its organizations functions as well. As
above diagram clearly explain how they managed all in a way to get best appropriate
results. As they have developed a fine system to involve employees in decision
making just to make them company loyal and responsible.
First goals are developed at higher level, then head of departments make their ones,
then unit office, next comes locations PGM, then functional heads then direct reports
are being formulated, supervisors take part and at the end employees also formulate
their goals. All these exceptional policies make Coca Cola International best out of its
competitors. At functional level, human resource, accounts, distribution, and sales &
management all have to develop their own goals according to their departments
philosophy.
All done at four basic steps, like wise:
Goal setting
Monthly review
Final review
First all goal are formulated according to above diagram, from organizational level to
employees, then monthly review has taken place in it only checking of goals
implementations is going on. Monthly review is at inter departmental level, here no
change can be offered as well as no record can be made but at goal setting both
change and record can be happened. Mid year stage comes with re alignment of goals
as well as new policies ways can be designed to achieve organizational goals. At the
end, final review comes in, in this step check and balance takes place, actual
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achievement can be matched with defined are standard one so as to measure out
comes or results.
Here after getting results, if organizations see optimistic results with greater
productivity, then they analyze its true reasons so as to reward those ones who have
done extraordinary yearly base performance. All those will have to be rewarded by
organization with their defined rewards like, salary increment, grade jump and
designation change (promotions).
Assistant Officers
M3 & M4
Officers
M5
Senior Officers
M6
Executives
M7
Senior Executives
M8
Assistant Managers
M9
Managers
M10
Senior Managers
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The purpose of giving this whole pay system is that Coca Cola is using pay system as
a base for their reward system. Because of such administration, rewarding may differ
according to their grade, as from management grade 9 to onwards, their percentage of
benefits rises. There are number of indicators which are used to define ones grade as
well as its designation in the company like wise, grid, education (educational
institutes, degree worth & specialization), experience with regard high profile
organizations, and industry experience and individual competencies.
Inflation rate
Performance Ratings
Exceptional performance EP :
Contributions significantly exceed the stated objective (s) in terms of quality,
quantity and timeliness.
Successful performance SP :
Contributions meet and sometimes exceed the objective (s), which are based on
challenging goals.
Developing performance DP :
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Contributions meet some / most but not all of the objective (s) and performance
improvement is necessary.
No Performance NP :
Contributions frequently do not meet the stated objective (s).
Performance requires monitoring and substantial direction from the manager.
Basically their pay system is highly linked with performance, firstly Coca Colas
management prefers grade for defining pay. They prefer to do research by
conducting survey of top five companies, in this step they conduct minimum three
year pay ranges of those companies and take average of them. Then they decided
their pay system with accordance to their management grades. Inflation rate has to
be considered each year at any cost no matter of an individuals performance
increase or not.
Grade Jump
Designation change
Monthly Basis:
Quarterly Basis:
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Gold Context
Employee completes most of the tasks assigned to him/her (as per their
objective and goals).
All the rewards are combined to form Coca Cola Internationals reward management
system to the extent to work well. Human resources department have developed a
great system by distributing rewards among yearly, quarterly, and monthly basis. All
above mentioned rewards really influence employees to satisfy their needs and wants
to larger scale. Coca Cola have developed systematic system with number of steps to
be followed; these limitations make their employees so disciplined and competent
which help them to produce more with contrast to their rivals.
RECOMMENDATIONS
Now we are able to give proposal or a fair advice to Coca Cola according to our
comparison between theory and what is going on currently in Coca Cola. In this step,
we have to shed a light over those areas which are valuable, creative and useful for
Coca Cola but they are not considering to them.
In start of our recommendation, we would like to add that nomination of EOQ criteria
more benefits to sales employees, so it should be highly recommended to have it for
all so as to make system fair. Reward system is an effective technique to support and
change culture of the organization optimistically; it would only be possible if the
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CONCLUSION
In our this assignment, we came to analyze how to relate literature implications to
expediency, this comparison helps us to understand trends of both sides and make us
able to think over them in a way to generate those strategic points which would best
overcome our corresponding companys reward management limitations. Our analysis
gives a fair picture which guided us towards acknowledged recommendations. We
have experienced to immense analytical skills, to give recommendations to the whole
scenario.
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