Monetary and Non-Monetary Awards - Assignment Example

Monetary and Non-Monetary Awards Name University Date Q1. This particular article essentially talks about different forms of rewards that are awarded to personalities who have worked very hard to change the lives of the people across the globe. The article clearly identifies various types of awards and to the levels of their viability. Many persons from different spheres and walks of life think monetary rewards are best suited in a reward scheme which is never the case. Therefore we can evidently note that there are two types of rewards, the monetary rewards and the non-monetary rewards. Monetary rewards are fungible and the recipients of this kind of reward benefit much economically unlike the non-monetary rewards where there are no financial gains. Non-monetary rewards take the forms of medals as is the case in sportsmen, decorations, titles and other forms of prizes. We can say the non-monetary rewards are intrinsic incentives that take into consideration to honor a person’s work or voluntary services to the society. Figure: Portrait of Nobel Peace Prize Medal High caliber persons in the society are the people tasked with giving out theses rewards to most qualified personalities in any given country or an organization. Chancellors of the universities, the monarchs from different existing kingdom and the presidents of the world`s nations are the person tasked with the duty of awarding persons these wards. From sports arena to business world, these awards exist. For example we have the Oscars or the Grammys wards, the IAAF sportsman of the year. In the business world, we have awards such as the CEO of the year, Employee of the month; such rewards have been established to raise the social status of the wards recipients. Pecuniary incentives which are the monetary awards differ very much from the non-monetary awards like the titles and trophies. The first difference that exists between the two is that giving out rewards is cheap unlike the monetary awards like the Nobel peace prize that is accompanied by millions of dollars. Award like giving a title to a recipient is very cheap and carries no cost at all. However it should be noted that giving out many awards leads to losing of value of the particular reward, also awarding a certain reward to a wrong candidate definitely will lead to losing of the value of the particular award. It should be noted that at times an award can be accompanied by certain value of money such as the Nobel peace prize that is normally worthy more than one million American dollars. In certain fields where performance of a performance cannot easily be determined, then non-monetary awards are the best to issue. It is true that there are some very complex activities that are practiced by several people at the same time making it difficult to actually measure every person`s performance. We can therefore note that awards are very important since they reveal a recipient`s talent and commitment to the betterment of the general society. The recipient`s try to bring out the idea of which character traits are exemplarily well and these figures who receive these awards can be ambassadors of public relations of organization and countries of their origin. Monetary rewards have been established to reduce work effort unlike the non-monetary rewards where all people are striving forward through hard work to obtain the award. Several economists have established that awards forge or foster ties of loyalty unlike the monetary compensation. An award creates a bond between the giver and the recipient. Awards raise the welfare of others in the society. If a person is honored with an award, then persons who practice same forms of activity have their welfares raised and they fell proud of their activities which it turn helps them realize better results from their activities. However the recipients of the awards should be few so that the fame of such rewards remains viable for long periods of time. It should be noted that non-monetary awards such as medals and titles are best suited to persons who undertake voluntary activities aimed at helping the society. Q2. Authors of the article suggest that where performance cannot easily be evaluated, awards have the advantage over the monetary compensation. This is out rightly correct since when person engage in certain activities where they all team up, then each person`s performance becomes difficult to evaluate. Therefore the only and best suited method to reward such people is through the mechanism of awards since they are cheap to issue. For instance take into consideration a certain product from a factory. In that particular factory, for the product to be completely manufactured, it passes through three processes. Each group of workers works on the product in their stage and passes it over to the next stage. When the product emerges as the best product in a competition, it will be difficult to evaluate each person`s performance on the product but it is easy to evaluate each group`s performance. Therefore you can reward the respective parties with non-monetary reward. However this suggestion by the authors can be contradicted, take for example a football match where it is a final match towards winning the league. The two teams draw under normal time but in the extra time one player scores a goal and one team wins. All the players worked as a team but credit goes to the goal scorer and in many times he or she is rewarded with cash money as reward. An incentive mechanism is essentially designed to motivate persons or may be workers in particular workstation to work harder and excel in their duties. When they work hard, they realize results of high quality. Therefore when a certain person is awarded an incentive, many other persons in the same level of competition try to work harder so that they are also rewarded. Therefore in the general work environment, monetary incentives are favored due to their economical nature. Therefore when we are designing an incentive mechanism, we have to take into consideration various aspects. These aspects are; is the work done on pay system or it is voluntary work, are there promotions in the hierarchy of duties among the workers. If the work is being done on voluntary basis, non-monetary incentives are preferred but if the work system is pay system, monetary incentives are preferred. When a particular worker in an organization gets to understand that when he or she reaches a certain set target, he or she gets a certain level of incentives, many of her compatriots’ will compete for the incentives. This will enable the specific organization to achieve its goals and at the same time increase the production levels. We can therefore comprehend each of the rewarding system has an environment under which it is applicable. Q3. As the chief executive officer (CEO) of the garments company called XYZ, my major objective will be to increase profits by maximizing production in the ten sections of the company. Company XYZ has ten top managerial positions and one thousand workers who work as a team to realize the well doing of the company. By introducing incentives which are monetary, the one thousand workers will pull up the socks to achieve or get those incentives personally. The first incentive that I would launch is the overtime payments. By allowing the workers to work on overtime basis, the company will realize more and better profits since the production levels will definitely rise above the normal values. The workers would be required to work on voluntary basis and not for more than four hours every day. Limiting the number of working hours during the overtime period prevents the workers from excessive fatigue. Also during this overtime period, I would ensure payments are made on piece rate rather than time rate. Paying on piece rate system prevents lazy workers from taking the centre stage during the overtime period. Also during the normal working hours, I would set a certain target which when reached by any worker, then they get monetary incentive. This will essentially boost the production levels. The managers also will be working on overtime levels if the persons under their command are definitely working beyond the normal working hours. The remuneration of both the managers and the workers can never be the same. Managers are very educated persons with vast experience in the management aspect and therefore their pay is normally higher than that of the workers. Then I think the rates of pay on the overtime basis among the ten managers should be equal. They should be paid on time rate since their major role is supervisory and not production role. Unification of their pay rates system will enable them foster positive relations within the company rather than create rivalry has it has witnesses across many company across the world. It should be noted that the managers have been assigned the duties that they supervise according to work specialization which means that what they do is essentially what they love to practice. This actually means that results of high quality are normally achieved all the times. Q4. Every year in the nation of Australian eminent personalities are honored by being awarded this prestigious award. This particular award, “Australian of the year”, is normally conferred on an Australian citizen by the National Australia Day Council. This particular award has been established to explain into details the identity of the Australian nation and how it has related to the world. It takes into account the aspects of multiculturalism and sports and the role played by the country`s indigenous people. Essentially this particular award recognizes persons publicly for their acts which have uplifted the welfare of the Australian society ranging from the sports world to the social world. This ward promotes active citizenship and many people are tried to be mentors of others to promote peaceful coexistence. The objectives of this award are purposely to honor personalities who have contributed positively to the nation’s culture, sciences, the economy and art through even music. This clearly shows that the persons who have been honored with this reward originate and will continue to originate from different realms of life. There are winners from academics; there are those who bettered the society out of their sporting talents and many more aspects. Therefore we can conclude that this award purposely has been used to honor noble Australians who have positively contributed to the nation’s welfare through their talents which range in fields of practice. Every person envies them and also tries to be one of the winners come into the future, that the dream of every Australian. Across the globe, various personalities have been awarded awards which have really have made significant impacts towards increasing the welfare of the societies we live in, for example consider the case of the late Kenyan Wangari Mathai who was honored for her role in the environment in the conservation of the environment. After she was awarded, many person became interested in her movement, the Green Belt movement which aims at conserving the environment by planting more trees to increase the world`s forest cover. This act of awarding her, led to conservation of many forested areas across the world. Therefore the welfare of society was uplifted by the award she was granted. This shows how important the awards are in the modern world setting. The next example is that of Nelson Mandela, the former South African president and anti-apartheid hero. Though he is dead, his deeds are actually still alive in our dear memories. Nelson Mandela received a total of 260 awards which helped bring down the apartheid rule in his country and consequently brought equality to his nation. The awards bestowed on this noble leader helped to negotiate the path to the country`s independence in the year 1994. Granting of the independence to South Africa and the banning of the segregation rules in the country actually uplifted or increased the welfare of the society. If it were not for these rewards, then I think the situation in the country would be different totally. Figure: The Late Nelson Mandela We can conclude that awards are very important in our daily and future lives, they actually uplift the welfare of the societies that we live in and hence they should always be glorified and be awarded to the right candidates in the most transparent way possible so that they remain to be the mentors in the societies we live in. by doing so, every other citizen will try to emulate the qualities of his or her mentor thereby uplifting the status of our current societies. Awarding the right recipients will ensure that the value of the awards remains intact and does not tarnish in any manner. Q5. In the year 2006, Nobel peace prize was awarded to Muhammad Yunus and the Grameen bank. Muhammad Yunus was awarded this prestigious prize for his industrious work that essentially uplifted the living standards of many people in his region. Both Grameen bank and Yunus had put forward extensive plans on poverty eradication. They set up micro-credit schemes that actually helped root out poverty levels in various low earning families. This act helped uplift the living standards of various persons across the region of the bank operation. Yunus and the Grameen Bank brought forward the norm of poverty eradication through providing loans to the poor in Bangladesh without any securities being involved. They put their visions into reality. Prior to this, loans without securities were impossible practices but with Yunus Visionary ideas, it was practices and the poorest societies in Bangladesh uplifted their living standards and scaled to higher heights economically. Global prizes the likes of Nobel enable realization of positive global norms that effectively and efficiently uplift the well being of the less fortune in the societies as it was the case in the Asian countries of Bangladesh and others. After Yunus won the prize, the following year, 2007, Albert Arnold (Al) Gore and the Intergovernmental Panel on Climate Change (IPCC) were awarded the Nobel peace prize. They were awarded this prize on the basis of their industrious work on climate change. They tried to put forward visionary ideas about climate change that is as a result of man`s activities on the earth. The prize recipient proposed viable measures that can be easily practiced to counteract the climate changes such as global warming menace that has and is bringing more problems to earth. He actually noted that global warming will lead to advent of more hot deserts and increased ocean water levels which will consume the coastal areas of many nations across the world. By disseminating greater and better knowledge about the man-made climate change, we stand at the chances of addressing the problems that will arise better and undertake the necessary measures in time before it is too late. Their award sensitized the world generally about the impacts of climate change and therefore many governments across the globe have started laying foundations to counter the menace of climate change. When the environment is actually conserved in the best way possible, then less economical and social problems will be encountered in future. This will avert the future to be catastrophic(s) in the coming future. All this success lies on the sensitization that resulted when the award was granted to the two involved parties. References JASPER, M. C. (2008). Workers' compensation law. New York, Oceana. COHEN, J., & MOTTET HAUGAARD, A. (2010). Monetary compensation for trade mark infringement in the European Union. Journal of Intellectual Property Law and Practice. 5, 372-377. NECKERMANN, S., CUENI, R., & FREY, B. S. (2012). Awards at work. Mannheim, ZEW. http://ftp.zew.de/pub/zew-docs/dp/dp12004.pdf. NECKERMANN, S., CUENI, R., & FREY, B. S. (2009). What is an award worth?: an econometric assessment of the impact of awards on employee performance. München, CESifo. http://hdl.handle.net/10419/30465. Read More