Based on the fact that aggressive people can change organizations and society, corporate cultures in the United States and around the world in the 1980s placed great emphasis on personal rewards. A classic example of a movie theater is Gordon Gekko of Wall Street, who thinks greed is good.
Seeing that the company suffers damage and destruction as a result of abusing incentives and being motivated. However, important business success is the reward system based on rewards.
Recently, Phones4U and Allied Dunbar are early examples of the financial services market. Individual traders with millions of bonuses, but in the end these motivated people failed to achieve the company’s goals. Even if the personal reward system is based on completely relevant performance indicators, it will lead to the success of the company and he or she will be rewarded.
The problems caused by the large wage gap may still exist. Reward and encourage all employees to take positive actions to improve the company’s interests in the short and long term, and feel that they are being treated fairly.
However, there must be a proper connection between the factors that are rewarded and the actions that can be taken that affect the expected results.A wise organization should recognize the following:
• Advise individual managers to act for their own benefit.
• Managers work for people, not organizations, and they want to please those closest to them, or if they fail, please their peers.
• Managers want to achieve and are attracted by tasks they think can be successfully completed.
They usually prefer short-term goals to long-term goals. Obviously, organizations need to lay the foundation before relying on the compensation structure to change performance and behavior. In other words, the management and organization system must be consistent with the salary system.
There are five important prerequisites for establishing an effective salary structure. Measurement: “If you don’t measure, you win. I understand. “There are several measurement systems, perhaps the most famous of which is the balanced scorecard, which has multiple goals and is already used by Tesco.
If only at the end of the year With proper monitoring or control during the review, it can show the manager that they are not important, or worse, when all managers fail together, the failure is acceptable. Control work tools:
The organization must ensure that employees do not overly rely on factors outside their control to achieve the set performance goals (this is part of the How formula). Organizational factors will not have much impact on the manager, nor will it deviate from the expected goals. The organization must also ensure that its design (bureaucratic or flexible) is consistent with what the manager should do.
The organization’s realization of a clear strategy is not a future thing. This is a journey. The reward system can be implemented within the organization, even if it has a relatively complex strategy, as long as it refers to the strategy and the balanced scorecard to resolve organization and management disputes.
Only in this way can the organization have pressure to improve its strategy, structure and compensation system. Based on these 5 prerequisites, there is a list of 7 factors that must be met for an effective reward and reward structure:
1.Maintain business strategies
2.Promote desired behaviors
3. promote appropriate performance
4. Fair and abundant tax savings and punctuality
5.The reward should be close to being reached including non-financial rewards.
6.appreciation is as important as cash
7. firmness the missed goal bonus will not be refunded, and the salary increase should only be postponed until the goal is reached