Realistic Business Reward System

Introduction
An effective reward strategy in a human resource organization contributes to maintaining and improving employee productivity. The reward system should concentrate on positive reinforcement and feedback to encourage employees to take further action to achieve performance excellence. Both intrinsic and extrinsic factors may be utilized in order to create an effective reward system.

Guidelines
The designed reward system should be an effective method to stimulate positive company progress, growth, and change. The efforts of employee and company improvement should be met with specific, realistic, dependable, and timely reinforcement. All measures of company guidelines should be identified and conveyed by managers to each employee. Human Resource reward strategies will include various guidelines depending on company management, but should focus on the following basics:

Specifications
Human Resource management should create awareness among staff members regarding company objectives, expectations, values, purposes, and policies. Management teams should openly communicate with employees to give them a better understanding of improving their position to reach performance excellence.

1. What are the company objectives? Answers will vary.
2. What expectations are required from employees? The answer to this question may entail physical appearance, language preference, communication between fellow employees, importance of meeting deadlines, and much more.
3. What are the company values? The basic values of a company are to maintain an excellent review from outsiders, quality customer service, friendly environment, morality, and a healthy atmosphere.
4. What purpose does the company serve? Answers will vary.
5. What are the company policies? Company directors will always develop and implement policies for company employees to abide by. Examples would be how employees interact, the abuse of using company equipment for personal use, stealing supplies, and disciplinary action allowed by authoritative figures.

Realism
The importance of creating and designing a realistic reward system for an organization is beneficial to reaching optimal function. Human Resource management teams should focus on setting goals within reach of entry level and upper level employees. Unrealistic goals would not allow the reward system to be effective, as very few employees would be able to reach the company's desired behavior. The downfall of a reward system will usually occur once unrealistic goals are set.

Dependability
The reward strategy should operate according to the basic guidelines and regulations. Management teams should follow through with promised rewards and demonstrate the company is serious. Employees need to be able to depend that their efforts will be recognized and rewarded rather than forgotten or set aside. Employees also need to feel as if there is no competition for the reward and realize everyone will be recognized for their hard work.

Time Management
Not only should human resource management be specific, realistic, and dependable, but they need to act on a timely basis. Employees need incentive to reach the goals of a reward system. What good would it do for an employee to be recognized or rewarded for his/her actions six months after the achievement? Managers should express the recognition or supply the rewards shortly after the goal is achieved so it will motivate other employees to improve their performance.

Performance Appraisals
Performance appraisals may occur on a weekly, monthly, or yearly basis depending on company policy. I think organizations should stray from performance appraisals on an annual basis because it doesn't allow for frequent utilization of a reward system. I think basic performance appraisals should be conducted on a weekly or bi-weekly basis to ensure improvement of employee productivity. I think a more extensive review of each employee should be done every six months which will reveal whether they are on the right or wrong track.

I believe it's very important for managers to realize each employee is different. Each person has their own opinions, beliefs, values, attitude, education level, skill level, character, and personality traits. People are driven to accomplish assignments and tasks by various factors and integrating a reward system may encourage employees to take the initiative to improve their performance.

The weekly or bi-weekly performance appraisal should include a review of customer service, employee relations, attention to detail, organizational skills, following rules, productivity level, and leave an open space for additional comments regarding the employee. The manager should either check "No" or "Yes" and include a brief or detailed comment if an incident occurred. I would utilize the following sheet for a frequent employee review.