How Organisations Reward Employees?
Rewarding employees for their hard work and contribution towards the organisations goals can be a good way to keep them motivated as it would show that they are valued and are doing a good job.
John Lewis is a good example of an organisation that rewards their employees in a number of ways. For example even though currently most parts of the world are facing a tough economic climate, john Lewis still made a successful trading year and they rewarded their employees by giving them 18% of their salary more as their reward. This was approximately equivalent to nine weeks pay. John Lewis also offer benefits that can be given to their employees as listed below:
Pensions
Discounts
Paid holidays
Extended leaves
Plus many more
John Lewis also treat all employees fairly and as equal. If they have been performing then they will also receive these rewards no matter which job the employee is doing.
Should Chief Executives receive bonuses when then organisation under performs?
In my opinion I feel that there are reasons for and against Chief Executives receiving large bonuses should the organisation be successful or under perform. Below is a list of for and against reasons.
The reasons for chief executives receiving large bonuses are that it will motivate them to keep on trying hard as they are receiving bonuses which show that the organisation trusts them to take the company to the next level.
Another reason would be that it may not be the chief executives own fault as other factors may contribute to the underperforming of the company as currently the economic climate is bad as people don’t want to spend money no matter what unless it is an essential. Other factors such as employees not carrying out instructions properly could lead to organisations under performing and this may be the most likely cause. Therefore if the chief executive was blamed for this even when they were trying hard to turn it around then it would de motivate them as they would feel like they are not appreciated for what they are doing and being blamed for other peoples errors.
The arguments against chief executives receiving large bonuses when the company is under performing are that if they receive large bonuses then other employees may feel that they are no valued as they most likely will not get a large bonus if any bonuses.
Another argument is that would it be fair on other people if they got large bonuses when they are already getting paid more than the rest of the employees and still receiving large bonuses, this would be unfair to other employees.
Overall I think that everyone should be treated equally and therefore if the company wants to reward the Chief Executive with large bonuses then the company should reward the rest of the work force should they do well or not as this show equality and fairness throughout the employees and this would also reduce conflict within the workforce.
Reference List
Laurie J. Mullins (2010) Management & organisational behaviour. 9th ed. Essex: Pearson Education Limited
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