Hrm40670 Hr Management: Cheesy Pizza| Assessment Answers

Cheesy Pizza Company is preparing to enter the Singapore and Hong Kong markets by opening ten outlets in each location in 2018. You have been hired as a HR consultant to advise the company on the rewards system it should put in place to ensure its management team and employees are appropriately motivated and rewarded.

You have been given the following brief by Cheesy Pizza senior management: 

a) Present an overview to senior management on the objectives of reward systems and why it should pay careful attention to the design of the reward system.

b) Develop a comprehensive overview of the factors that Cheesy Pizza should consider when designing and implementing a reward system for its Singapore or Hong Kong operation. 

Answer:

Introduction:

Cheesy pizza is the company that wants to enter the market of Hong Kong and Singapore in order to serve the customers there. As far as the fast food industry of Hong Kong is considered, it has been analysed that the industry is at the peak of its growth. Dining in traditional vulture of the Chinese people but the major concern for the fast food companies in China is that they have to include the localized taste in their dishes (Armstrong and Murlis, 2007). In Singapore, the competition is very high for the fast food companies. This is because of the high competition that is given by McDonalds. As an HR consultant, I need to develop the reward management plan for the company so that it can hire and retain the staff in both of these countries with efficiency.

Objectives of reward system:

Reward system is the very crucial and the integral part of the organization. This is because providing rewards and compensation to the employees is one of the factors that attract and retain the employees in the company. Every organization has different reward system and according to the objectives. Some of the objectives of reward system are:

1. Motivating the employees: The first and the most important objective of reward systemare to motivate the employees so that they can enhance their performance in the organization. Motivation is very necessary for the employees. Cheesy pizza needs to implement the reward system in the company so that the new employees get attracted to the company and feel motivated to perform.
2. Followingthe legal standards: It is the legal legislation in the countries like HongKong and Singapore to provide rewards and incentives to the employees according to their performance (Perkins, White and Jones, 2016). Thus, it is required by the company like cheesy pizza has to implement the reward system in the company.
3. Developingemployment relationship: one of the mainobjectives of reward system in cheesy pizza is to develop the relationship between the employees and the employers. This is because providing rewards helps the employees to develop the feeling of belongingness in the organization and thus it results in enhancement of the relationship between both the parties.
4. Performance check: this is closest and the crucial objective of the reward system. For providing rewards, the companyneeds to evaluate the performance of the employees according to the standardsthat have been set for the employees (Brown and Purcell, 2007). If the standards are met or exceeded that the employee gets the rewards for the same. This results in checking the performance so that the gap can be analysed and filled.


Develop positive competition: Reward is the thing that motivates the employees to perform better. This motivation or the wish of the employees to earn extra benefits results in development of competitor among the employees (Armstrong, Brown and Reilly, 2010). This competition creates an environment at the workplace where employees try to perform effectively toachieve the set target and thus results in efficient organizational performance as a whole.

Designing of the reward system: Attention to management

To design the rewards system, there are different considerations that require the attention of the management.

Cost effectiveness: when any of the stem is introduced in the company, it should be assured that the system should be cost effective and it should provide worth benefits. As far as the reward system of cheesy pizza is considered, it has been analysed that the system should be effective in terms of cost. It is major sector where the management needs to put their attention (Shields, 2007). It has been identified that around 50% of the whole organizational expenses are in reward system thus making the rewards system cost effective is very essential for the organization.

Market position: this is another element that needs to be considered by the management of the company in order to implement the rewards system. Market position is the factors that depend on the place where the company is starting its business (Armstrong and Stephens, 2005). As the companywants to operate its business in two differentplaces so that market position would also be different at both the places. As far as Hong Kong is considered, it has been analysed that there were flat pay scale low wages system. But after several reforms the rewardssystemhasbeenintroduced in the co nines. The government regulated this function in china. Thus, the decision over the rewards and the level of rewards depends on the Chinese government policies. Ion case of Singapore, it has been analysed that the companies or the employer in Singaporebelieves in payingaccording to the performance so the company called cheesy pizza needs to implement the same strategy in Singapore market (Dyl, 1988).

Future orientation: it is very much important that the reward system that has been introduced in the organization should be flexible enough so that any changes in the future can easily be adapted by the system (Milne, 2007). There are many external factors that affect the internal policies of the organization, especially the policy of rewards. Some of the factors are market trends, demand and supply of labour, economy of the country etc. Thus, it is required to make the functions of the rewardssystem of the company in such a ways so that any future changes can be easily incorporated.

Alignment with business structure, beliefs and values: every function or the system in the organization should be aligned to its objectives and gaols along with its beliefs and the values (Gomez-Mejia, Tosi and Hinkin, 1987). This is because the beliefs and the values that the organizationfollows is the main base of forming any of the policy or system for the organization. Cheesy pizza is the organization that needs to introduce the reward system in the company at Hong Kong and Singapore. At both the places the beliefs and the values of the company are different. This is because of the localization strategy. In Hong Kong, the Chinese people are very much attached to their culture so the rewards system should be according to that and in Singapore the rewards system is according to the performance.

Fair and equitable: Fairness is the basis of all the system in the organization. The organizations that are fair have more employee satisfaction and then the organizations which are biased in nature (Jensen and Zimmerman, 1985). The rewards system that has been introduced in cheesy pizza should be fair and equitable for all. It is the major concern of the manager to implement such policy in the organization. They should take care of the fact that every policy that has been under the reward system should be fair and equal for every employee in the company.

Designing of reward system:

Financial and non-financial:

Financial rewards include all those rewards that are money related. Money is considered as the most important factor that affects the motivation of the employee. Money can be used in different forms such as salary, bonuses, remuneration, medical insurance etc. The management of the company has to take initiatives regarding the enhancing the money or financial incentives so as to hold on the employees in the organization (Hendry, 2012). This is because it is first thing that has been discussedwhen any of the employee is selected. This is the factor that attracts the employees to join the organization.

In HongKong and Singapore, the financial rewards are similar for the employees. The financial rewards include the basic salary of the employees according to the designation and according to the trends that are in the place or industry.

At the time when the financial or the monetary rewards to the employees have been given to fulfil their basic needs, they require some of esteem needs. This is time when the money then stops acting as the motivator for them (Dowling, Schuler and Welch, 1991). Thus, they require some non-monetary benefits that require the employees to sustain in the organization. These non-monetary benefits involves the work culture or the environment of the company, celebrations, flexible working hours, leaves, appreciation and recognition for the work done etc. Some of the non-monetary or non-financial rewards that are being introduced in Cheesy pizza at Hong Kong and Singapore are:

• Recognition
• Birthday celebrations
• Flexi hours for work
• Leaves

Pay structure:

The first pay structure that has been implemented in the company called cheesy pizza is career family pay structure. This structure has been used in Kong as it is the place where people are organization and works in departments. The career family pay structure is the structure that is singlegraded in nature. In this structure, the employees are divided into different departments such as marketing, finance, HR etc. These departments are rated as families and the pay is given according to the grades they are positioned on in the department.

This is the model of the career family ay structure that shows the different departmentand the levels of the jobs.

Narrow graded: another paystructure that has been used in the company at Singapore. This is a single graded structure which is the universal type of structure that has even used in most of the private companies (Khanka, 2007). In this structure the jobs ate divided and the grades are associated with it. These grades have small range and thus have several mid points that are the difference between the grades is of around 10% to 50%.

The above is the formula to calculate the difference between the grades pay range.

Reward mix:

Pay: Pay can be defined as the normal basic pay that has been received by the employees for the job they are doing. The pay involves the basic salary to the people. The pay that has been givento the employees in cheesy pizza is the basic salary in accordance with the position or the grade of the job (Ulrich, Brockbank, Yeung and Lake,1995). This is the basic general structure to provide the pay to the employees. In this structure, the employees those who are lower level of the jobs are receiving the less pay in comparison to the pay that has been received by the people at the higher level jobs such as at the management level. Pay is the basic requirement of the employees. The employees who are the similar level gets the equal basic pat but the associated variable pay such as allowances, and there benefits can be varied. The pay also increasedby the experience they hold in the same organization (Perkins, White and Jones, 2016). This is because the company believes in providing yearly increment to the employees. Thisincrement is added in the basic pay of the employees.

Incentives: Incentives are the extra pay that has been provided to the employees in order to motivate them to perform better (Sokro, 2012). The incentives are the pay that has ben received at the cost of performance the employees are providing to the company. This structure is also involved at both the place so as to motivate especially sales staff of the company. Structure of incentives in the pay also creates competition in the organization to perform better and this ultimately results in better organizational performance (Fisher, 2009). The company used to provide incentives to the employees as a team and also as an individual. Team incentives are given to the particulardepartmentin order to perform effectively and individual incentives aregiven to theemployees who provide great performance as an individual. Implementing both these strategies in the organization helps in achieving the target as individuals and as team that results in overall achievement of organizational targets (Botha, Bussin and De Swardt, 2011). As the company is giving individual targets to the employees so achieving that target help the employees to develop themselves as an individual and to have growth opportunity in the organization.

Extrinsic and intrinsic:

Extrinsic rewards are the rewards that are physical in nature and that can be given only by the employers (Tella, Ayeni and Popoola, 2007). This involves the benefits like incentives, extra bonuses, gifts, accommodation receives etc. These are related to the performance of the employee.

Intrinsic rewards: Intrinsic rewards are the rewards that are not only in the hands of the employers but can be achieved by the feeing and the behaviour of the other employeesat the organization (De Gieter, De Cooman, Pepermans and Jegers, 2008). This include the non-physical things such as send of achievement, recognition, praise by the seniors or respect by the other team members etc. This is los required by the employees in order to get motivation to work effectively. Money can fulfil the needs but the sense of work g hard can come only by the intrinsic rewards.

Implementation:

Implementation of the reward system can be done only by the mutual efforts of the whole organization (Azasu, 2012). It is require by the HR manager to take some of the initiatives in order to time the new rewardssystem to the overall organization. Some of the important steps that are needed to be taken to implement the system are:

Communication: communication of the whole reward policies is very necessary in order to implement the same in the organization. Each and every employee should know about the pay structure and the philosophy (Wirtz, Heracleous and Pangarkar, 2008). This can be circulated by session or by e-mails. The employees shouldalso give some time to accept the new changes in the rewardsystemand the HR should keep a check that every policy is understood by the employees so that they can perform accordingly. Each and every feature can be circulated to the employees and timely evaluationshovel be done.

Training: training should be given to the managers of each and every department so that they can convey the information to the employees and lead them regarding the reward policies (Xiao, Tang and Wirtz, 2011). The managers are responsible for guiding the employees about how the work should be conducted. The mangers should guide the employees in such a way so that they all can fall into the incentive basket and can gain more and more rewards from the company.

Support from trade union: To implement the rewards system, support from trade union is very necessary, this is because trade unions are the representative of the workers in the organisationand they know the needs and the requirements of the workers very well (Mutua, 2011). Taking views firm the trade unionsrepresentatives helps in forming effective rewards system.

Feedback: continuous feedback should be gathered fromthe employees of the company so that the required improvements can be done. The employee should take the initiatives to provide true feedback so that efficient improvements can be made in the reward policies and system.

Conclusion:

As per the previous discussion, it can be concluded that reward system plays crucial role in the organizational growth. It helps the organizational management to build a strong bonding with the employees and it provides a sense of importance among the employees. They often feel as an important part of the organization and it puts significant impact on their commitment level towards the organization. It is often used by many leading business organization to achieve the long-term goal of the organization and encourage their employees for giving their best performance. As the employees are the key elements of every business organization, it has become mandatory for every business organization during this competitive era to maintain healthy and active relation with the employees. In this scenario, rewards system works as the weapon for the business organizations. Hence, Cheesy pizza must incorporate rewards system in the organizational structure to ensure the bright future of the organization. It functions in a competitive market, there is a always a threat of new entrants and substitute. To enter into the global market and put a strong footprint in the bys providing quality service to the loyal and potential consumers, the organizational management of Cheesy pizza needs to retain their loyal and skilled employees for long time. In order to earn the desired goal, the organization must appreciate their employee for their performance. It will motivate them to participate in the organizational operation in an active manner and provide efficient support to the organization too achieve the common organizational goal.

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