People and Rewards Systems Reflection

Edward Lawler and his colleagues identified that there are four interlocking principles that are crucial when building a high-involvement work system in an organization. The principles ensure that the organizational systems are effective. In addition, they ensure that various departments work together to influence positively employee engagement in the organization. The principles are summarized to provide employees with the power, knowledge, information, and rewards.

Reward systems are the mechanisms put together in a company to achieve the set goals. It is important for a business to understand the employees’ dreams to incorporate them in a company’s vision. The reward system is an essential part of any company’s design. The correlation of the reward system with the organizational strategies in the company has a crucial impact on business effectiveness and the quality of employees’ experience.

In today’s economy, many companies influence important aspects of organizational performance in several ways. Employees visualize and implement the company’s strategy, while the combination of both the human capital and resources determines the organization’s success. Proficiencies and expertise are necessary, as they contribute to achievement of the company’s goals. Most of the proficiencies are functions of the skills and knowledge of the organization’s human capital. Moreover, people appreciate the feeling of autonomy and mastery. FedEx organization and other companies in the industry should treat their employees as their most important assets. However, the organization should acknowledge what motivates the people to reach their full potential.

In the recent study, researchers found that high involvement into the work practices develops positive attitudes among the employees. Employees’ involvement would ensure performance enhancement in FedEx organization. According to the expectancy theory, it is crucial to embrace participatory philosophy with an aim of aligning the selection process with potential of the employees in an organization. Success of the company is achieved through selecting the right individuals with the commitment to development, teamwork, job safety. In addition, incentive-based pay contribute to effective human resource management. Moreover, rewarding employees for discretionary efforts to improve the organization’s performance is a key element in employee motivation. Incentive-based pay ensures that the employees use their power, information and knowledge for the benefit of their organization.

Training programs are developed for the improvement of current and acquisition of the future interpersonal and technical skills. Training programs are valuable for both experienced and new employees. Training ensures that the employees’ skills are necessary and relevant to the organization, which proves skill validity. Lastly, training keeps employees up-to-date with the new systems in the organization, therefore, ensures contribution to the organization’s performance.

The recent popular trend of profit sharing is a formula-based group incentive that organizations employ to motivate their human resource. The group productivity and effectiveness determines the percentage of the profit allocated to the team members as bonuses. Profit sharing is similar to gain sharing, but they not the same strategies. Gain sharing aims to reward specific behavior in an organization that is less influenced than profit sharing by the external factors. Scholars support profit sharing, as it has higher profitability than gain sharing. Mostly gain sharing has a positive impact on employees’ perception of the organization; hence it brings more productivity to many firms. For example, in one plant, each employee earned a bonus of $5,444 over a period of four years for suggestions that saved the organization US$12 million. The bonus inspired employees to invest more effort and it was evident in the evaluated program. In the introduction of this system, FedEx should experience bigger contribution from the employees, who would want to learn much from the company and give back to the company.

Communication and Measurement Systems Reflection

Many organizations face the challenge of communicating their goals, strategies, plans, collecting feedback on the customer satisfaction, and explaining changes to their employees. In addition, a difficulty is experienced in finding a way to measure employees’ performance. Lastly, stressing the implementation of the strategies in the organization may appear challenging. It is the duty of the company’s management to provide a solution to the problems by coming up with an open communication strategy. A good communication strategy involves explaining to the employees the organization’s goals, strategic plans, production cost, profits and customers feedback. These measures positively influence employee satisfaction and ensure that performance targets are achieved.

Organizational communication is a key feature in the performance management. The communication includes clarification of the reward system, explanation of the business strategies, and employees’ feedback on the correlation between rewards and goals. Therefore, it is an organization’s responsibility to implement a performance management process. This strategy requires a manager to monitor performance of the employees and provide ongoing positive or negative feedback.

The communication process further encourages the management to leave their desks and observe the employee’s performance, comparing the actual achievements to the set standards, and intervening in the process using behavior-based language to recognize, reward or improve the employee’s performance. FedEx organization should appreciate communication in their workplace, as it is a major aspect in their structure and success. In the modern smart companies, communication acts as a vehicle for showing support and allowing autonomy to the employees. Hence, when it comes to the reward systems, communication plays a significant role. It is important for the management to ensure that employees do not see rewards as tools for enforcing performance, but as a sign of great performance.

Effectively communicating to employees any relevant information to improve their performance will result in organization’s achievements. In every organization, employees aim to be a member of the inner circle, be aware the company activities, and have information about the profits, expenses and new strategies. Sufficient information possessed by the employees enhances decision making, which in turn is reflected in good organization performance. Moreover, the introduction of communication channels for the employees motivates workers. Interaction of a senior or executive manager in FedEx organization with the employees is a motivational tool.

For every organization, there is a strong correlation between satisfied customers and happy employees. The happiness of employees is reflected in their quality work and hence, positive feedback from clients, and vice versa. However, the elements of this theory do not always balance. Feedback from customers, either positive or negative, provides the ground for organizational improvement, and employees are able to learn how to meet customer satisfaction. FedEx organization, and similar courier companies such as DHL, Mediterranean shipping company and others, should involve the social media, ballot boxes and other platforms of collecting feedback to ensure that customers’ opinions and complaints receive a timely response. Feedback ensures that employees understand how consumers perceive their goods and services in the market. Constant feedback encourages them to learn and motivates to put more effort in the process. The result is the enhancement of organizational performance.

Harvey Hunnicut, a blogger and a writer