HUMAN RESOURCE AND ORGANIZATIONAL

DEVELOPMENT
ASSIGNMENT
ON
THE TOPIC
REWARD MANAGEMENT- REDESIGNED FOR SHAHI
EXPORTS PVT. LTD.

Faculty:
Dr. ASIYA NASREEN
Department of Social Work
Jamia Millia Islamia.

Submitted by:
ZAHRA NEYAZ KHAN
15MHR0020
M.A. (Human Resource Management)
Department Of Social Work
Jamia Millia Islamia
New Delhi.
REWARDS

A thing given in recognition of service, effort, or achievement or a fair return for good or bad
behaviour or show one's appreciation of (an action or quality). Receive what one deserves.

REWARDS MANAGEMENT

Reward management is concerned with the formulation and implementation of strategies and
policies that aim to reward people fairly, equitably and consistently in accordance with their
value to the organization.

Reward management consists of analyzing and controlling employee remuneration,

compensation and all of the other benefits for the employees. Reward management aims to
create and efficiently operate a reward structure for an organisation. Reward structure
usually consists of pay policy and practices, salary and payroll administration, total reward,
minimum wage, executive pay and team reward.

Reward management is a popular management topic. Reward management was developed on

the basis of psychologists' behavioural research. Psychologists started studying behaviour in
the early 1900s; one of the first psychologists to study behaviour was Sigmund Freud and his
work was called the Psychoanalytic Theory. Many other behavioural psychologists improved
and added onto his work. With the improvements in the behavioural research and theories,
psychologists started looking at how people reacted to rewards and what motivated them to
do what they were doing, and as a result of this, psychologists started creating motivational
theories, which is very closely affiliated with reward management.

OBJECTIVE OF REWARD

Reward management deals with processes, policies and strategies which are required to
guarantee that the contribution of employees to the business is recognized by all means.
Objective of reward management is to reward employees fairly, equitably and consistently in
correlation to the value of these individuals to the organization. Reward system exists in
order to motivate employees to work towards achieving strategic goals which are set by
entities. Reward management is not only concerned with pay and employee benefits. It is
equally concerned with non-financial rewards such as recognition, training, development and
increased job responsibility.

Kerr (1995) brings to attention how Reward Management is an easily understandable

concept in theory, but how its practical application results often difficult. The author, in fact,
points up how frequently the company creates a Reward System hoping to reward a specific
behaviour, but ending up rewarding another one. The example made is the one of a company
giving an annual merit increase to all its employees, differentiating just between an
"outstanding" (+5%), "above average" (+4%) and "negligent" (+3%) workers. Because the
difference between the percentage increasing was so slight, what the company obtained from
the employees was indifference to the extra percentage point for a superlative job or the loss
of one point for an irresponsible behaviour. In the following table other common
management errors are summarized.

TYPES OF REWARDS

Rewards influence the behaviour of employees through internal impact on the organization
and external impact on the organization. It means reward serves internal and external
purposes of organization.

Internal Purposes
Reward aims to enhance job performance, to retain valuable employees and develop
corporate unit. Internal purpose is served with intrinsic rewards. Intrinsic rewards are
associated with job itself. Internal rewards are tied up directly with behaviour and
performance.
External purposes
External purposes are served mainly with extrinsic reward. The rewards are not
associated with the work itself but are influenced by co-workers, informal groups and
other organizations. The extrinsic rewards include salary, bonus, fringe benefits, profit
sharing and incentive plans.

Rewards can also be classified into financial and non-financial rewards.

Financial Rewards
Financial Rewards can be financial directly or indirectly. The employees can get
directly financial reward such as wages, bonuses and profit sharing. They can also get
indirectly supportive benefits such as pension plans, paid vacations, paid sick leaves
and purchase discounts. Employees are more motivated by financial rewards as
money being a strong motivator for them.
Non-financial Rewards
Non-financial Rewards such as having lunch with the boss of the company or
preferred lunch hours, receiving the office furnishing, having a change to work with
congenial colleagues, and achieving a desired work assignments or an assignments
where the worker can operate without close supervision. Non-monetary rewards can
help to build feelings of confidence and satisfaction in the employees.

REWARDS TO EMPLOYEES AT SHAHI EXPORT

Best Attendance- Perfect attendance is a sign that an employee is enthusiastic about

work, and that they are being productive every day. It serves to improve overall
morale, as other co-workers begin to look up to the employee who is always there;
firms have a reason to offer employees incentives for perfect attendance. It's a small,
simple gesture, but it is often enough to let the best employees know that their efforts
have not gone unnoticed. Firms also give rewards. While giving out additional time
off may be an ironic response to an employee's perfect attendance, that worker may
appreciate a gift certificate to his or her favourite restaurant. They will always have a
reason to give their best performance in the future.
At Shahi Export, employees are given best attendance award for maximum
attendance that includes a trophy and a certificate.
Best Employee of the Month- The Employee of the Month (EOM) is a type of
reward program given out by companies (often to encourage the staff to work harder
and more productively). It involves recognising employees for achieving excellence
in their field, and being the best worker across all fields. Traditionally, the award is
given out every month, but that is not necessarily the case. The system is popular in
the United States but now in India and also in other parts of the world.
At Shahi Exports, employee is rewarded with EOM, in which he was given a trophy,
a certificate and a cash prize of 500.

Employee of the Year- The objective of having "Best Employee of The Year" is to
select a model employee who will become a good example to employees in relation to
the company business ethic. It is based on certain criteria. 1. Quality of work, 2.
Attendance, 3.Attitude, 4.Appearance, 5.Cooperation, 6.Responsibility, 7.Reliability,
8.Achievement, 9.Discipline, 10.Other significant factors. For each criterion a point
of 10 is given. Therefore the total is 100 points.
At Shahi Exports, The reward is opened to the focus group or certain category and to
those employees who have completed a certain no. of years in service. The reward
includes a certificate, trophy and a cash prize of 2500.
Wedding Gift- At Shahi Export, this is prevailing for years. In this the wedding gift
is given from company to the workers ward or newly wedded workers worth 20000,
at the time of wedding and the gift is dropped on the day of wedding.

REDESIGNING OF REWARD PACKAGE

There is no standard formula for a performance-related reward package; it is unique for each
industry and organization. The reward plan should be designed to align with an
organizations objectives. Clearly defining the objectives of the rewards so designed.

Financial Assistance to Employees Wards.

Financial assistance reward plan should be designed for the workers children
consisting of various programmes such as providing of scholarship; tie up with
coaching institute, financing for higher education of the meritorious children and the
financial assistance should be given to first two children of the wards only.
This will help the employees to be free from stress of arranging money for their
children education.
Betiya Padhao.
This could be another reward initiative and would be beneficial for the female
children of the workers. It would also be a good initiative because most of the workers
are living in Haryana and the state is known for less male female ratio in the country.
It would be great opportunity for the organization to take up such initiative as most of
the workers employed there is female. This would discourage people from killing
female child and also would create awareness about female education in the state.
This would also help the company to contribute towards the government initiative of
Betiya Padhao, Betiya Bachao.
This could be done by financing the education of girls, or make a tie up with the
existing schools and colleges for the very noble purpose.
Cab Facility
The cab facility would be a good reward to the workers coming from the far off
location. This would save time as well as money of the workers, which could be used
efficiently for achieving the goals of the company.
Gifts
Gifts are considered short-term, mainly presented as a token of appreciation for an
achievement or obtaining an organizations desired goal. Any employee would
appreciate a tangible matter that boosts their self-esteem for the reason of recognition
and appreciation from the management. This type of reward basically provides a clear
vision of the employees correct path and motivates employee into stabilising or
increasing their efforts to achieve higher returns and attainments.

Trust/empowerment

In any society or organization, trust is a vital aspect between living individuals in

order to add value to any relationship. This form of reliance is essential in order to
complete tasks successfully. Also, takes place in empowerment when managers
delegate tasks to employees. This adds importance to an employee where his
decisions and actions are reflected. Therefore, this reward may benefit organizations
for the idea of two minds better than one.
BIBLIOGRAPHY

http://www.shahi.co.in/home.htm

https://en.wikipedia.org/wiki/Reward_management

http://www.hrwale.com/compensation/reward-management/

http://www.cipd.co.uk/hr-topics/reward-management.aspx

http://accountlearning.blogspot.in/2013/03/concept-and-meaning-of-reward-
management.html
https://www.ukessays.com/essays/commerce/the-relevant-theories-about-reward-
management-commerce-essay.php
http://www.assignmenthelp.net/assignment_help/reward-management-processes-and-
activities