Designing a Reward System

Also , for achieving the objective of long term commitment of these people with the company , royalty for the products developed through team efforts for say first 5 years should be offered to the whole team till the individual team member remains with the company . Royalty will end if the individual or the company decides to discontinue employment . This sense of mutual benefit by working together will lead to improved results in team settings

The sense of sharing of company profit will also multiply their motivation towards efficient working and towards the achievement

of company 's objectives . Once the motivation to work is there , absenteeism will automatically reduce (Armstrong , 2004

Such rewards will transform the company as an employer of choice and thus the problems of recruitment would be overcome

Executive Directors

Recommended Reward System

High commitment and a high level of dynamism are extremely important at this level in any organization . Existing reward System of fixed time basis doesn 't seems to be supplementing this . Keeping in view the above circumstances , it is recommended that the share of fixed salary in their income should be reduced to a considerable amount and they should be offered a reward system which is related to company profits . Linking their pays to company profits will get them to work with a commitment to work hard . Because the more they will work the more the company will make profit and more will be their income

Only a few allowances /fringe benefits should be offered to them as fixed salary

Conclusion

Motivated employees are the most important asset for a successful organisation . In to retain motivated employees , ABC organisation should provide a compatible package of intrinsic as well as extrinsic rewards for all the employees . We propose a very balanced package of rewards foe every hierarchy...