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Dear Tutor
Can tell me what is the factor need to consider for implementing and designing reward scheme?
i’m struggling to think but can’t to think of any factor, pls help
The expectation theory could help here. The reward will be less or more effective depending on 2 factors:
– How valued the reward is by the employee
– What is the effort required to obtain the rewardFor example, I like chocolates, but I wouldn’t swim to France for a chocolate bar. But I would probably swim to France for 3 million pounds, …..
That is certainly a factor, but also consideration needs to be given to having a range of measures – both financial and non-financial. Also, the measures used for the reward scheme are the things that the manager is going to concentrate on, so it is important to have measures that focus on the key factors that are important for the company. Also it is important to encourage goal congruence – that what is good for the manager is also good for the company as a whole. Also it is important to keep reviewing the measures – key factors change over the years, and so the measures used need to change as well.
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