Other / Reward System
(1) Bonuses are a type of a reward system that motivates stakeholders to increase their endeavors to achieve a more satisfactory performance for the company. The scheme of bonuses applied on a seasonal basis wherein an employee will get more benefit depending on the month, holiday, and the performance that they apply. The second is the salary raise, which is achieved after several years of working with the company. The third is the gift reward type, which is provided through a token of appreciation for a certain achievement that has been applied.
(2) In every assessment, the advantage is to identify all strengths and weaknesses to the operating company and stakeholder. This is an advantage that prompts the company to formulate plans to generate equilibrium to balance the operational framework to prevent any problems. The disadvantage is the risk of losing financial interests. This is because providing bonuses increases the number of expenditures for the company.
(3) The example environment is the seniority of each stakeholder who is currently employed in the institution. This particular employee is able to render their service for many years, which are given with a salary raise. If the employee has already been working for the company for at least 5 years, they are now going to be subjected for a salary increase. While the employee renders more years with the operating institution, they will further have their salary increased. This is because this is a process wherein the employee with the longer tenure of work with the company is given the chance to have a higher salary than other employees who were just hired by the company for several years.
(4) The first challenge for the reward system is when the employee that has just been promoted started to commit a series of unsatisfactory remarks. This is a challenge because the second person in the lineup who have not yet been received a negative evaluation presents another problem that affects the whole institution. The second challenge is when the newly promoted employee is related to the administrators of the company that could influence the whole scenario of the institution. This is technically unfair to other employees because there is a blood influence of the promotion. Promotion needs at least five or more years before a certain individual is ground for promotion. If the employee is just a newly hired by the company, they are not bound for promotion. This means that patience is a requirement for every stakeholder before they are going to be included in the list of employees for promotion.
(5) It is important to conduct an evaluation to all employees on a regular basis. This includes establishing a regular evaluation application on a weekly basis that is applied to each stakeholder. Evaluation seeks to identify the strengths and the weaknesses of the stakeholder. The company should not employ two stakeholders who are blood related to prevent any instances of favoritism. Companies usually hire employees that are related to their administrators of board of directors. Each applicant should undergo a series of training and examination before they become officially accepted for the promotion for a higher position with the company. Experience is one of the most important considerations for every employee to receive rewards since they already dedicated their work to the company for several years (Suddaby & Foster, 2017).
Reference
Suddaby, Roy & Foster, William M. (2017). “History and Organizational Change”. Journal of Management. 43 (1): 19–38.
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