Incentive Scheme Case Study

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3.0 The HIS Current Incentive Scheme
An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.
3.1 Key Weaknesses with the Incentive Scheme in terms of Motivation
The Sales Division’ performance is dissatisfactory because it lacks commitment and the directors are unhappy about it. Clients have been complaining about being sold expensive policies only to discover later that they were not as extensive as they were led
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Armstrong (2007) notes that traditionally, the conversation of global reward strategy has been centred on a small group of elite expatriates moved from the company’s headquarters and rewarded in concealment from the local staff (p. 24). The strategic approach today is too reward all performers regardless of whether they are expatriates or locals. The HIS, which may hire members from their home country should design a reward and recognition system that is meant for all performers to prevent a situation where employees feel that rewards are for a certain level or
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