"Companies that give excellent service SHOULD reward employees for providing it"
Introduction
The essential variables to be considered in a good reward environment are analyzed in the respective article. To begin, it is critical to comprehend what a reward system is. It is an initiative aimed at incentivizing staff who meet the set goals. A reward can be defined as a gesture of appreciation for good work or an incentive to improve.
Reward analysis
“Key factors in a successful reward environment”
Employee equitability and contentment must be considered in an effective reward environment. You should be motivated to achieve the desirable goal or to thrive the business. A successful business achieves its profit and wealth maximization goals for its owners and investors. Employee motivation consist of compensating employees to boost their productivity and give them a sense of ownership over the company. The most important reason for a company to adopt a reward scheme is motivation.
There are a few key elements to consider to create an effective incentive environment. In a reward system, management is crucial. While conducting day-to-day operations, a company must inherit solid management skills. A team of professionals oversees the hiring of high-profile employees. Excellent managerial skills must be employed, and a company must ensure that personnel are trained regularly so that they can adapt the needs of the organization and improve accountability.
The culture of an organization can also significantly impact a rewarding work environment. It encompasses how a company conducts business, including how it forms relationships among people, interacts with its external environment, measured performance, and achieved transparency, among other things.
The organization's external environment also influences a successful incentive environment. Customers and the broader public make up the external environment. For an effective reward, an organization must examine the attitudes of its surroundings. The analysis is designed to assist a company in determining the level of customer loyalty with the company's external image. The company should move forward and set goals for its people to achieve based on their awareness of the outside world, with those that succeed in achieving the goal being rewarded. Extrinsic and intrinsic incentives are money and non-financial rewards, respectively.
A effective incentive scheme relies heavily on the appraisal process. To determine an employee's effectiveness, the procedure comprises reviewing and assessing his or her current and previous performance. Not only are the best-performing employees rewarded, but those who have performed poorly are exposed to training sessions.
The data's relevance as well as its availability to Coca-Cola Company
Coca-Cola is the world's largest non-alcoholic beverage manufacturer, having been founded in 1888 in the US. Coca-Cola, Fanta, Sprite, and other soft drinks are among its most well-known products (more than 300 brands). James Quincey is the firm's chief executive officer, and he works alongside other regional managers to ensure that the organisation runs smoothly. With a significant number of personnel involved, the production process is partially automated. It is critical to guarantee that efficient projects are completed, which can be achieved through rewarding employees. The incentives might be monetary, such as bonuses, allowances, and pay raises, or intangibles, including personal fulfillment, developmental (training), and a sense of positive consequence.
The company's reward system is examined in this article. The award information is easily accessible on the internet. Externally, the corporation has donated $70 million to around 250 community organizations around the world (Hays, 2010). The figures demonstrate how much money the corporation made as a result of providing scholarships to students from underserved neighborhoods. Internally, the organization must begin by categorizing job groups based on experience, completed work, personnel level, level of education, and task size. Employees are paid according to their work groups. Employees are also given tough jobs and are compensated for working extra hours (overtime). Coca-compensation Cola's system is noteworthy since employees are awarded based on their performance.
Interconnection between reward and business strategy taking all the internal and external context and culture into consideration.
In the Coca-Cola Company, there are connections between reward and business planning. The research looks at the company's business strategy and how they interact with the incentive structure. Coca-Cola is focused on profit maximisation and, as a result, is always devising new strategies to attain this goal. The company uses a penetration pricing strategy that allows for relatively low and cheap beverage prices. The organisation also employs value creation as a business approach. In order to ensure that the company derives the maximum value from its employees, value creation stresses not only consumer value creation, but also employee value creation.
Setting achievable targets aids to connect reward with the corporate strategy. One of the company's goals is to improve client satisfaction. Coca-Cola sets the goal work rate for its staff. It rewards them if they meet it, while profit maximization and customer satisfaction through the production of high-quality products by highly motivated staff.
The capacity to communicate effectively is critical to every company's success. Communication is crucial in tying reward and business goals together. For example, the Coca-Cola Company's internal and external communication processes are both effective. Internally, management permits information to flow in both ways, both above and downward. Employees are made aware of where they can report a serious problem. Through advertisem*nts, the company has been able to reach clients all across the world.
A detailed analysis and assessment of the Coca-Cola reward system and why is it a success.
Coca-Cola offers a monetary incentive to hardworking employees as a reward approach. Bonuses, raises in pay, airline tickets, and scholarships for the employees' children are among the financial benefits. Employees who perform poorly are not fairly compensated. It's disheartening because the corporation was supposed to develop training programmes and give staff time off to relax. Instead of feeling discriminated against and motivated, low-status employees are pushed and encouraged to work hard. On the other hand, the incentive system is successful because of the environment and nature, as well as the company; the company has established an exceptional reputation and goodwill, has a set of clear and attainable objectives, a considerable market share, and efficient administration.
Total reward policy
Total reward is a concept in which a company tries to encourage and retain employees in order to get the greatest results possible. Coca-Cola has launched a cloud-based technology program that allows employees to customize their own rewards. One's choice may differ from another's. Sometimes need of the differ employees, for example, may consider excursions, and holidays to be vital, whilst others may prefer allowances and scholarship funds for their dear ones. Coca-contribution Cola's to total reward yields fruit. Because employees are internally motivated or self-driven, the organization can get the most out of their contributions. A motivated employee will create better-than-expected results, which is one of the reasons why the company is performing well in the market than their competitors in terms of sales due to the excellent-quality products it produces. Coca-performance Cola's is positively impacted, which is why it is today the best performing beverage company in the world.
Best practice policy
Another incentive concept examined in the research is best practice in terms of fairness, consistency, and transparency. When best practices are implemented, employees are treated more fairly and equitably. The organization follows best practice guidelines by ensuring that all activities are transparent and auditable. The organization also practices CSR activity. It wants to give back to society to establish a positive reputation and brand for the firm. To compare best practices, policies, and transparency, fairness and accountability are used.
Recommendations
The Coca-Cola Company should reward high-performing and well-known subordinates and help those who are underperforming to gain confidence. Confidence is not a natural trait; it is acquired over time through a systematic learning process. Extra training is more than a perk for underperforming staff. Employees should be able to choose from a variety of incentives, thus the company should categorise and diversify them. They might be monetary, non-monetary, performance-based, or recognition-based incentives. Coca-Cola should also promote openness and minimise bias while rewarding employees, with any employee receiving a bonus for a job well done. Coca-Cola should also focus on increasing the worth of their employees.
Conclusion
Finally, the report gives the idea of a reward system in the Coca-Cola Company the green light. The key elements of a reward system have been highlighted, which include employee motivation toward achieving organizational goals. The study also shows how line managers at the Coca-Cola Company play a key role in ensuring that the reward process is successful. In addition, the article looked at total contribution reward and practice reward. Finally, the study suggests steps Coca-Cola should take to improve the effectiveness of its reward system.
“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” – Simon Sinek
