The paper "Employee Reward Issues " is a great example of a Management Case Study. Every organization has a competitive edge over the other, this often creates stiff competition, and as a result, each organization strives to maintain its talented yet highly qualified staff. This would be possible with the help of an employee rewards program within the organization, which should not only be simple to administer but also benefit the organization in the end (Recognitional Council, 2009). From the psychological point of view, when an organization rewards its employees, the employees would realize that their actions are paid exceptional interest and in turn would put in more effort that would reflect positively for the organization.
There are formal and informal reward programs that an organization may choose from, for instance, the rewards may be in the form of money or non-monetary rewards such as certificates, vouchers, verbal recognition, and trophies (Human Capital Institute & Camden Consulting Group, 2009). An organization would opt to start an employee reward program with the aim of recognizing, appreciating (saying thank you), and valuing the employee's input into the success of the organization.
The employee rewards scheme is different from the normal compensation schedules. For instance, an employee’ s salary is a form of remuneration for completing the work whereas; benefit schemes are to look after the employee’ s welfare. On the other hand, long and short-term inducements are dedicated to prize an employee’ s accomplishment of definite performance objectives (Schiffers, Young, & Shelton, 1996). Organizations that have incorporated employee reward programs profit in various. For instance, organization administrators and management gain the following from employee appreciation programs; in general, there is increased productivity by the employees.
The management will be able to make out underachievers easily; it also encourages employee devotion to the company since they are recognized and appreciated and this, in turn, increases the employee’ s efforts to make the organization successful. The program also acts as a form of communication between the administration and the subordinates (Whitney & Bombard, 2007). MEASURES OF FINANCIAL PERFORMANCE: Various financial performance measures can be used by an organization in order to find out the overall performance of the organization as well. One of the measures includes evaluating the organization’ s performance in the perspective of shareholders' worth.
The shareholder’ s worth formation can be gauged using Economic value added (EVA). Another gauge of the shareholder’ s worth formation is the Refined economic value added (REVA), which is a hypothetical measure for evaluating the efficiency of an organization's working performance using recompensing the financer for the risk to their investment as a perspective. REVA is said to be a more superior assessment when compared with EVA (Bacidore, Boquist, Milbourn, & Thakor, 1997). Another measure of financial performance is the economic margin.
This is a combination of Economic value added and Cash flow return on investment. It incorporates the economic profit, which aids the managers to center on value formation. It also has depreciation and payback added to determine the cash flow (Venanzi, 2012). Additionally, Overhead price is also a financial performance measure. It is the cost of the expenditures relating to non-project in the organization. Therefore, for there to be higher profit margins, then the organization would have to reduce the overhead prices (Wintner, 2006).
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