Rewards

Reward scheme at Tesco

Tesco have become a market leader by doing the little things that really matter for their customers and staff. Tesco believe in treating its staff with respect, with everyone having an equal opportunity to get on, ensuring that Tesco is a great place to work. It provides great reward opportunities for employees working at Tesco, as well as competitive salaries at all levels they also offer a whole package of other ways to help employees make more of their money and future. For the good work performance they show, Tesco provides rewards and benefits for their employees in return. This results in employees being more motivated and would help keep them working harder. Managers need to meet both the organisation’s strategic goals and satisfy the needs of employees. Tesco have been known for running three successful share schemes to help employees financially and share the success of the company. Tesco rewards their staff by giving free shares to everyone who's worked for one year at the end of the financial year. This is done by sharing a proportion of the profit amongst their employees. These shares are given to all the workers based on salaries so everyone gets a share no matter what group they belong to. For this reason Tesco ensure fairness. However the amount of the share is judged by the individual’s salary for example higher paid employees get more amount of share of profit compared to lower paid staff so in this sense it’s unfair because all workers should be treated fairly as they are working for the same organisation. On the other hand it can be argued that the reason for this is because senior staff who are higher up in position have more responsibilities, higher pressure due to the fact they have the better qualifications and relevant skills that are needed for the role. In that sense it is understandable that the employees that have a greater responsibility on the company receive a greater share of the profits.
Another way is all employees who work at Tesco are given a Privilege card which is a staff loyalty card that gives 10% discount and Clubcard points on most of the Tesco products. This is entitled to everyone who works there so this ensures that all employees are treated equally. (Tesco-careers, 2010)

Should Chief Executives still receive large bonuses even if the organisation that they have led has underperformed?

For:

• As chief executives are at the top of the organisation they obviously have worked hard to get to the position due to the relevant skills and qualifications they hold that are needed for the role.
• Even though the business has underperformed they still carry huge pressure with the decision making of the business and have many more responsibilities compared to employees lower down the organisation.
• It may not be the chief executive fault that the organisation has underperformed
  If the times were bad and the company’s performance was poor, by paying the chief executives large bonuses means they would be motivated enough to turn the situation around

Against:

• Decisions made by the chief executive may have been totally wrong or even if they did not fulfil their responsibilities properly, which means it is their fault and for that reason they should not be paid large bonuses.
• If the company continues to perform poorly and the chief executives still gets paid rewards then this would make them lazy and would not do the job properly and sincerely as they know they still will be getting paid their bonus which is wrong.
• Bonuses is a type of reward that only should be paid if the person deserves it so why should the chief executive get a reward for something they did not do well in.

Rewarding a primary school teacher

3 financial ways:

· Wages- Teachers are normally paid per hour worked and they receive money at the end of the week according to many hours they have taught for. Overtime is paid for any additional hours worked during the week.

· Salaries- salaries are based annually and they are paid at the end of each month.

· Piece rate- This type of financial reward is paying the teacher per item they produce in a certain period of time. For example if they had exam papers to mark at the end of the year, they would get paid accordingly to they amount of papers they mark within a certain time.

3 Non-financial ways:

· Verbal and written appreciation- Acknowledging the specific contribution made by the teacher from the head teacher is the most genuine form of reward. Teachers would feel proud and pleased that the hard work they are putting has been recognised. This is effectively motivating teachers.

· Requesting the teacher who has performed well in a specific task to give an assembly on behalf of the headteacher. This would make them feel privileged that they are getting a chance to do this.

· Book or travel vouchers- This is a reward the teacher can enjoy in some kind of way away from the school and use it for their personal use.

If I was a teacher, the one strategy that would motivate me the most is being recognised for the achievement. It would be a good feeling to verbally be acknowledged for the work and effort I have made and be recognised for it. I would feel valued and this would motivate me to put in my effort all the time so I can be recognised further.

Conclusion:

In conclusion rewards include all the financial and non-financial ways that an organisation provides for its employees in exchange for work they perform. This does not only motivate employees but increase commitment and reinforce culture and values developing high levels of performance.

Reference:

Tesco-careers, (2010) Rewards and benefits [online]. Available from: http://www.tesco-careers.com/home/working/rewards-and-benefits [Accessed 24 April]