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Operating Procedures. Relationship with Coworker. Satisfaction with Compensation. Satisfaction with Security. Satisfaction with Supervision. Satisfaction with Growth.
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Sense of Achievement. Correlation is significant at the 0. Promotion Opportunities. Operating Procedure. Share this link with a friend: Copied!
Other Related Materials pages. In this book, Tom Wilson focuses the reward strategy on those actions needed to implement a firm's competitive strategy.
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Wilson defines a reward system as any process within an organization that encourages, reinforces, or compensates people for taking a particular set of actions. It may be formal or informal, cash or non-cash, immediate or delayed.
He says that organizations should develop and implement a behavioral framework for rewards. This involves rethinking the reward systems that currently exist. The process entails viewing reward systems as supporters, if not drivers, of change, and modifying the concept that pay programs are just an infrastructure to the organization. It goes beyond making sure that people are getting paid, and includes understanding the messages that a program sends and the behaviors it reinforces. This approach also involves establishing a strategy for building and integrating a set of systems, programs, and practices that reinforces the behaviors necessary for the implementation of the organization's goals.
Wilson introduces the "Reward Smart" model, stating that effective reward systems are:. Specific - Performance measures and feedback systems need to define what people should do to contribute to the organization's success. There needs to be a clear line of sight between the results desired and the behaviors required to achieve them. Meaningful - Rewards need to make people feel valued for their achievements from their own point of view. Achievable - The desired actions or results need to be within the participants' control or influence, and attainable through reasonable effort.
Reliable - The system needs to be designed and operated in a fashion consistent with its purpose. Not only should rewards be contingent on the achievement of desired results, the whole process must be managed in a cost-effective manner. Wilson cites data showing that an examination of employee performance in relation to most annual incentive plans indicates that employees make a concerted effort to achieve goals toward the end of a performance period.
He suggests developing new approaches to performance management, and gives 10 guidelines for this new approach:. Recognize that there is a problem 2. Reformulate the purpose of the performance management process 3. Use objectives to focus activities; use goals to reinforce progress 4. Measure both results and behaviors 5. Provide continuous, real-time feedback 6. Make reinforcement a part of every day 7.
Use performance reviews to celebrate and to learn 8. Make review meetings as frequent as necessary 9. Reward results and reinforce behaviors Earn the right to skip annual performance appraisals. In addition to introducing the concepts, this book is filled with revealing case studies of companies that are successfully using this methodology. Helpful charts and diagrams clarify the core concepts and techniques. This book can help organizations create state-of-the-art reward and recognition systems that really work.
Websites and Other Resources we've found about this topic include:. The only way we've been able to get to a specific area, however, is through this URL, followed by clicking on "Library," and then on the specific topic of interest. There is a lot of information available about compensation and rewards.
Strategic pay: Aligning organizational strategies and pay systems.
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