James Mendez

English 1302.080

Ms. Leone

Topic Sentence Outline

November 1, 2011

Employee Rewards and Incentive Systems

Introduction

Incentive systems are one of the cornerstones of all organizational design and therefore a key element for successful implementation of the quality system. It is a powerful HR policy when set to the institutional environment, with the quality approach adopted and especially with the other dimensions of organizational design (Thomas, 12).

The idea behind any system of incentives is the same: reward individuals for their contribution to the organization. The design of an incentive system is conditioned by two factors: firstly, the complexity of the task and job characteristics, and another, the quality approach chosen by the directors as to what behaviors they want to encourage (loyalty to the company, learning, personal development, cooperation in the domestic sphere, etc.).. In order to analyze the degree of correction and adjustment in the definition and implementation of HR policy will take into account four aspects:

This is going to define how to assess the contribution of people to the organization and depending on what they going to compensate. Systems that encourage individual performance: This is one of the most direct and accurate ways to link performance with incentives and therefore is a powerful tool for modeling behavior.

Systems that encourage team performance: This is an incentive system adopted in organizations applied Work Systems High Commitment (STAC) and using groups of self-directed work. In this case, as a reward for all members are based on team results (Rosen & Harvey, 292). However, if team members are unable to supervise the work of his fellow-well by the size of the group or by the heterogeneity of the tasks performed, they can penetrate the perception of injustice among those who consider themselves to be victims of behaviors opportunistic.

In the quality literature there is broad consensus on the desirability of using incentive systems that reward collective performance of the equipment. The main argument in favor of these practices is to encourage collective effort needed to improve quality. Moreover, the extent to which the characteristics of work teams provide mutual control among its members, avoiding the perverse incentive systems of collective character.

Incentive systems are for the entire plant, strategic business unit or company: This is the so-called profit-sharing plans. They are suitable for transfer to employees the company's situation and, where appropriate, the need for change. Promote a broad vision of the organization and cooperation between departments and work units (Schermerhorn, Hunt & Osborn, 15). However, the system rewards equally to the best and the worst employees and can be a source of conflict between management and workers when deciding the criteria for calculating the benefits that can be distributed and how.

Thesis Statement

Incentive Management is by no means an easy way to run an organization. However, Incentive Management will make any organization more productive and more profitable given dedicated employee involvement and management commitment. This paper will be discussing the employee rewards and incentive systems (Incentive management). These will analyze the three claims as mentioned in the outline.

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