Objective Position, Person and Performance. Industrialization brought in the

Objective

This
study highlighted the impact of newly implemented reward and recognition program
on employee’s motivation and satisfaction.

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Abstract

This
study will help to understand the reasons for the implementation of new reward
and recognition system in the organization (DESCON) and its impact on employee’s
motivation which will help in the satisfaction of the employee. The company has
implemented the job evaluation system introduced by Mercer which is a 3P model
of job evaluation. i.e Pay for Position, Person and Performance. Qualitative
approach has been used to study the impact of this system after implementation.
For this purpose a focused group of key persons in the organization has been
selected to evaluate and investigate the effectiveness of the program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

Job
evaluation is a very important factor for any employer as he will be able to
hire the right persons for the right job. DESCON is a multinational company
with over 17000 employees working in this organization. Its head office is
located in Lahore Pakistan.

  Mercer
is an internationally accepted job evaluation system to Pay based on Position, Person and Performance. Industrialization brought
in the challenge of how and what to be paid to workers being employed to
undertake certain jobs. These jobs primarily having tasks which are repetitive
in nature and therefore, once a skill is developed, more or less all workers
are equal in their performance. This sowed the seed of Pay for Position or Job based Pay,
whereby based on the knowledge and skill, a person being utilized to perform to
achieve certain pre-determined level of performance, equal wages are paid.
Paying the position suggests that all employees are identical in the
contribution and their value. Pay for Position can very well be defined as
how and how much employees should be compensated for fulfilling their
position’s responsibilities, ensuring internal equity and external
competitiveness. The alternative to job-based pay is to compensate staff
according to the value of their skills in the market. The most common approach
is Competency-based pay or Pay
for Person. Along with these two, the other fact came into prominence was
the real reason of recruiting a person and this is that the person has to
perform to the maximum level, he/she can. A person is to perform to the extent
of Knowledge, Skill and Abilities one is possessing and therefore, came in
existence Pay for Performance into
the market. Under this model, both short and long term rewards are considered.

The
organization has decided to go into cultural transformation of job
evaluation.  In lieu of this the company
has launched the 3P model of the job evaluation after certain research and past
experiences for the better compensation of employees as per their position.
After the implementation of this model, the motivation level of different
employees is different. The study will allow us to investigate about the
impacts and consequences of this system on the motivation level of different
employees after its implementation and how it is different from the previous
system of evaluation of an employee in the organization.  For this purpose we have decided to have a
focused group discussion of different employees.  And after having this discussion we have
explored the answers to different questions arise in the mind of different
employees.  

 

Literature Review

 

There is a large body of literature, including research
literature regarding job evaluation, impacts of rewards and recognition on the
motivation of the employees. Reward and recognition programmes come within the
discussion on extrinsically motivated behavior thatoccurs when an activity is
rewarded by incentives not inherent in the task (Deci,1971).

In the prior studies
practitioners explored many factors which are helpful in uplifting the
motivational level of employee in an organization. This has been tested by
different studies. Job evaluation is an important criteria for the recruitment
of the appropriate candidate for the appropriate position.
Seeing what motivates to representatives is one of  the objectives of the Administration. Despite
it may be not workable straightforwardly to inspire others. The overall aim of
having employees identify their own welfare with that of the

organization. (Bruce and
Pepitone, 1999).
In accepted agreement rewards programmes come aural the all-embracing
abstraction of advantage strategies which are authentic as

the “deliberate appliance of
the pay arrangement as an capital integrating

mechanism through which the
efforts of assorted sub-units or individuals are

Directed appear the
accomplishment of an organization’s cardinal objective”. (Gomez-Mejia and
Balkin, 1992).They are administration accoutrement that hopefully contribute to
a firm’s capability by influencing alone or accumulation behavior (Lawler and
Cohen, 1992).All businesses use pay, promotion, bonuses or other types of
rewards to animate aerial levels of performance (Cameron and Pierce, 2001).

In an minimum, workers hope
the association will give acceptable reasonable pay, safe. Attempting
conditions, furthermore reasonable medication. Such as management, workers
often. Hope more, relying upon the quality for their needs to security,
status,. Involvement, challenge, power, Also obligation. Exactly how yearning
the. Desires of each party need aid differ from association to association
(Beer et al., 1984).

 

The writers accept that
every person needs those possibilities to innovativeness also for accomplishing
objectives. The limitless questions are how associations scope this possibility,
what’s more entryway they invigorate and 
innovativeness that what’s more encourage previously, their people the
yearning should succeed also to attain self fulfillment through their worth of
effort. The regular topic of the writers will be the conviction that
individuals necessity to make regarded furthermore approached concerning
illustration precious mankind’s capital.People are now seen as the primary
source of a company’s competitive advantage.Therefore, the way employee are
treated increasingly determines whether an organization will prosper or even
survive (Lawler, 2003).

 HR policy makers and HODs can play an
important role to promote knowledge sharing culture (Ayesha et al. 2017), HR
policy makers need to design effective recruitment and selection criteria to
acquire competitive candidates. This research provided more understanding
toward the staff committed with their institution and developed trust by
adopting three specific HR practices namely i) Recruitment and selection. ii)
Training and development. iii) Compensation and reward.

The
study was done on the basis of 198 survey responses from seven public higher
educational institutes and the responses were collected on 7 point Likert
scale. The study clearer point that when HOD give fair recognition and
appreciation to the staff by realizing their weaknesses and arranging training programs,
the staff confidently share their ideas and opinions which increase trust and keep
them committed with their profession. The study also revealed the positive and
significant influence of HRM practices on affect based commitment and affective
commitment.

Another research (Reena Ali et al 2009) depicts that there
is a statistically significant relationship between reward& recognition
system and motivation and satisfaction level.  The study revealed that if rewards or
recognition offered to employees were to be altered, then there would be a
corresponding change in work motivation and satisfaction. The results of this
study also indicated that sometimes the reward and recognition system may not
be as useful tool as it can be in some cases. In such cases the employees can
be motivated with some of the other factors/dimensions such as recognition of
the work.  The biographical questionnaire
was a self-developed questionnaire that incorporated the following personal
information of the respondents.

 Gender, home
language, marital status, age, race, job classification, education,
qualifications, job grade and tenure. The Nine Dimensions of the Questionnaire are

     
I.       
Work content

   
II.       
Payment

  
III.       
Promotion

  IV.       
 Recognition

  
V.       
Working conditions

  VI.       
 Benefits

 VII.       
 Personal

VIII.       
Leadership

  IX.       
 General.

A comparative study of different motivational theories
was conducted (Mark A. Tietjen et al 1998). This paper reviews the literature
of motivational theorists and draws from their approaches to job satisfaction
and the role of motivation within job satisfaction. Attitude is everything.
Herzberg’s concept of attitude as a force powerful in output has been
complemented by Locke’s formulation of value and its importance to work goals
and subsequently job satisfaction resulting in the enhancement of motivation
level of the employees. The theories of Frederick Herzberg and Edwin Locke are
presented chronologically to show how Locke’s theory was a response to
Herzberg’s theory. By understanding these theories, managers can focus on
strategies of creatingjob satisfaction. This is followed by a brief examination
of Kenneth Blanchard and Paul Hersey’s theory on leadership within management
and how this art is changing through time.

How to measure motivation (Maria C. Osteraker, et al
1999), A dynamic triangle has been developed to explain the motivation which
depicts three different levels of motivation i.e the individual level, the
organization level and the culture level (society). One of the oldest concepts
within research

on motivation is hedonism, where the individual tries to
maximize pleasure and minimize

pain. The model can be seen as a general theoretical
framework of the theories as it at the same time reduces their shortcomings by
making out a need of a thorough examination of the measuring object where such
levels as society, organizational culture and the personality of employees are
taken into account. One of the fundamental ideas in the learning organization
is to involve employees in processes at work, something that also should improve
motivation. Since the values of the employees affect their priorities as
regards motivational factors offered by the organization, these values should
be the guidelines for further attempts to increase the motivational level among
employees.

Basic motivational techniques require managers and
supervisors to play an active role in coaching others. Active coaching toward
motivating employees includes:

1.    Giving
positive feedback and rewarding good behaviors;.

2.     Public recognition of efforts;

3.    Providing
incentives, even if they are non-monetary;

4.     Leading by example and demonstrating
willingness to be part of the team;

5.     Listening to what is being said and responding
appropriately; and asking questions, and showing interest and empathy in the
details.

Motivation viewed within the organization
structure might not account for concerns over more personal impacts of the
organization’s financial situation. Leaders must endeavor to learn to read
emotional signals from individuals in order to address how to motivate at
whatever level of concern could be most impacted. People will always have
concerns, but determining which concerns within the workplace influence a
personal need is key to providing the best motivation.

By providing managers to opportunity to become leaders
and see past standard activities, they themselves could create a work
environment that sustains a motivating culture. (Micheal A. Crumpton et al 2013)
The aim of this paper is to acknowledge and provide tips for ongoing motivation
needs of an organization. This article discusses several examples in the
literature regarding motivational elements. Findings of this article advocates
for seeking new approaches to motivating employees as financial concerns
deepen.

The
authors proposed that the motivation should be re-engineered as the
conventional techniques are not working anymore. Conventionally there were two
approaches for solving the motivation puzzle i.e by being tough or by
understanding by being good. The authors have proposed a new fresh formula   based
on friendship, work and respect (Dayr Reis et al 2001). To retain qualified
employees in an organization and to maintain a satisfactory type of role
performance, people’s experiences in the system must be rewarding, particularly
if they have freedom to move in and out of organizations. The core message is
that managers should reconsider the outdated motivational patterns utilized to
maintain role performance in organizations.

Organizations
are under constant burden to boost and expand their performance and are
comprehending that an interdependent relationship exists between organizational
performance and employee performance

 

 

Methodology

 

A
focused group discussion has been arranged and interviews of different
employees have been conducted to explore the answer of the following questions

 

 

1.   
What is the first thing that comes in your
mind when you think of Mercer.

2.   
What do you think is best about “Mercer
System”

3.   
What do you think is the biggest problem related
to this system

4.   
What do you think has driven the company to
implement this system

5.   
Are you happy with the implementation of this
system

6.   
What is the significance of this system

7.   
I am fairly compensated.

8.   
Have you ever studied this system before or
after implementation

9.   
Do you think that employees feel happier now
as compared to the previous system

10. Do
you feel that this system has been implemented in its true spirit

11. Do
you feel that employees feel motivated/demotivated after its implementation

12. Please
give examples if you feel that employees feel motivated/demotivated

13. What
do you think can help employees feel motivated after the implementation of this
system

 

 

 

 

 

Findings/Conclusion

 

After
conducting interviews of the several persons and arranging a focused group discussion,
we have arrived at the following conclusions. The company has decided to
indulge in the cultural transformation. For this very purpose, the organization
has decided to introduce the compensation system for the employees. After our
efforts, we have come to know that this is alpha numeric system. There are
bands. Narrow band and broad band. This Reward Philosophy will help the
company  to achieve the following key
objectives: 1) Align ourselves with the market 2) Develop a culture of variable
pay 3) Attract, retain, and motivate talent 4) Improve our internal pay equity
5) Enhance the linkage of performance management system with employee rewards
The perks/benefits such as medical, provident fund etc will be same for the
broad band (7 broad bands) while the pay will be variable as per narrow bands
(26 levels).   Only 10% of the employees
knew this system before its implementation. Most of the employees who knew this
system before its implementation belong to HR department because of the fact
that they have to remain involved in compensation packages of the employees.
Rest of 90% employees never bothered to know about this system of job
evaluation and compensation. According to some of the employees it is a very
good system and they think this system is well-established. Some of the
employees think that it is a very good system and all the solutions provided
are good, while most of the employees think that it is not as beneficial as it
should be because this system has not been properly implemented according to
them. Most of the employees think that the biggest problem related implementation
of this system in organization is that this system evaluates the job on the
basis of 3Ps. In this scenario a person who has devoted 20 years to company
working on a specified position will be treated equal to a fresh entry employee
against the same position and will get the same perks while the pay can be
variable. According to most of the employees this system has aligned the
internal and external compensation and others think that this has not aligned
the compensation. 65% of the employees are happy and motivated after the
implementation of this system as they have been promoted to the status of
“Regular” and enjoying the perks which they were not enjoying before the
implementation of this system. The most important significance of this system
lies in the fact that most of the young employees have been upgraded based on
their positions as they were working at the lead positions. Now they are
enjoying better perks as compared to that of the previous one. Some of the
employees after the implementation of this system, first time tried to search
about this criteria as they thought they were not properly compensated. The
company has implemented this system to compensate the employees in a better way
but the demotivated employees think that this system has just been implemented
to cut the cost of the expenditures done by company and reduction in
perks/benefits of the employees. The motivated employees think that this is a
very good system as this enables the organization to standardize the grades and
salaries. In the case of compensation, most of the young employees who are at
the leading positions think that they are fairly compensated while the
demotivated employees think that this system has only been implemented to
reduce the cost by standardizing the salaries and they are not fairly
compensated and they feel furious about this compensation system. Some of the
young employees who have been working in junior management cadre has been moved
to the middle management position based on their positions which has increased
their skills and coordination resulting in the motivation of the employees.

The explored
results of the questions  have been
depicted in the treemap as below.

 

 

 

 

 

 

 

In
the end, based on this study we can conclude that this system is a very good
system of job evaluation and has been implemented in the true sense. Most of
the employees are happy and motivated as they have been compensated in a better
way as compared to the conventional grading system. Consequently, their
motivation level is high and they feel more satisfied as compared to that of
the conventional one.

 

Research Gap

This
study has been conducted in DESCON Engineering and it can be conducted in other
organizations as well. And other organizations can also implement this system
to motivate their employees.

 

 

References

1.    Ayesha
Naeem, Neelam Hanan Mirza, Rana Muhammad Ayyub and Rab Nawaz Lodhi. 2017. “HRM
practices and faculty’s knowledge sharing behavior: mediation of affective
commitment and affect-based trust” Journal of Studies in Higher Education Pages
1-14

 

2.    Reena
Ali and M.Shakil Ahmed “The Impact Of Reward And Recognition Programs On Employee’s
Motivation And Satisfaction: An Empirical Study” International Review of
Business Research Papers Vol. 5 No. 4 June 2009 Pp.270-279.

 

3.    Mark
A. Tietjen and Robert M. Myers(1998) “Motivation and job
satisfaction”, Management Decision, Vol. 36 Issue: 4, pp.226-231.

 

4.    Maria
C. Osteraker, (1999) “Measuring motivation in a learning
organization”, Journal of Workplace Learning, Vol. 11 Issue:2, pp.73-77.

 

5.    A.
Crumpton Michael, (2013) “Keeping the motivation going”, The Bottom
Line, Vol. 26 Issue: 4, pp.144-146.

 

6.    Dayr
Reis, Leticia Peña, (2001) “Reengineering the motivation to work”,
Management Decision, Vol. 39 Issue: 8, pp.666-675.

 

7.    Beer,
M., Spector, B., Lawrence, P.R., Mills, D.Q., & Walton, R.E. 1984. Managing
human assets. New York: The Free Press.

 

8.    Lawler,
E.E. 2003. Treat people right. San Francisco: Jossey-Bass Inc.

 

9.    Deci, E. L. (1971). Effects of externally mediated rewards on
intrinsic motivation. Journal
of Personality and Social Psychology, 18(1), 105-115.

 

10. Bruce, A. and Pepitone, J.
S. 1999. Motivating
employees, New York: McGraw-Hill Professional. 

 

11. Gomez-Mejia, L.R. and Balkin, D.B.
(1992) ‘Determinants of faculty pay: an agency theory perspective’, Academy of
Management Journal 35 (5): 921–955.

 

12. Cameron, J. and Pierce, D.W. (20041),
“Rewards,
interest and performance: an evaluation of experimental findings”, American Compensation Association Journal,
Vol. 6 No. 4

 

13. Lawler, E.E. and Cohen, S.G. (1992),
“Designing
pay systems for teams”, ACA Journal, Vol. 1, pp. 6?19.