The paper "Managing Employee Relations and Reward" is an outstanding example of a management assignment. The purpose of this report is to analyze the role of a good incentive scheme for increasing the company’ s performance. Incentive schemes are activities that a company employs to reward its employees using cash, goods or holidays. The schemes are intended to motivate the employee and to encourage their commitment to the company thus increasing the productivity of the company (Fisher 2008). Incentive schemes are also aimed at increasing the employee’ s performance towards the achievement of the overall goals and objectives of the company.
Incentives may be offered for good sales performance, good production, or even timekeeping. Question 1 A well-structured incentive scheme is able to satisfy the physical and financial goals of an employee. The scheme should also enable the company to achieve its overall goal and objectives. A good incentive scheme is thus able to identify the key employees of the company. The engineers are considered to be key employees in this company. In order to clearly understand the problem behind the engineer’ s incentive scheme that is their pay and reward package, it is important to acknowledge the fact that the employee wants to prosper and grow just as the company is growing.
This simply means that the employee views himself as an equal owner at the company. The problem associated with the engineer's incentive scheme can be analyzed by evaluating the components to a successful incentive plan includes Discretionary vs. structured The first issue about the engineer’ s incentive is that it is discretionary. This simply means that the incentive scheme was designed by the management without any considerations to the individual engineer’ s achievements.
The engineers are paid according to their productivity which states that they should visit at least four sites every day and they are given the opportunity to earn a bonus from each site they visit thereafter. This pay plan clearly does not consider the achievements of the engineer but rather considers the engineer as a resource to the company. The engineer’ s skills and knowledge are not considered important to the company. Employee empowerment: This issue assesses the fact that the engineers do not know how to contribute to the company’ s performance and success.
The engineers lack the opportunity to achieve desired goals within the company. The incentive plan for the engineers does not allow them to excel within the company. Lack of the opportunity to advance and to be involved with the company has driven down the commitment rate of the employees. The introduction of the new portable computers and the mobile phone has also detached the engineers to the internal activities taking place within the company. The new system has limited the ability of the engineers to focus on what is important to the company and it has thus reduced their commitment to the company.
The engineers have thus started forming into groups to discuss their increasing isolation from the company as they feel that they do not contribute to the success of the company.
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