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Question: Write a report to provide advise the Company on the rewards system as a HR consultant it should adopt for ensuing that its Management team and Employees are adequately motivated by achieving proper rewards. Answer: Introduction The present report aims to provide suggestions to the Cheesy Pizza Company for developing its rewards system in order to enter the new markets. The Cheesy Pizza Company is planning to enter in the new markets of the Singapore and Hong Kong by opening ten outlets in each of the location. The main objective of this report is to provide advise the company on the rewards system as a HR consultant it should adopt for ensuing that its management team and employees are adequately motivated by achieving proper rewards. The development and implementation of a proper reward system is essential for an organization to motivate employees for achieving its long-term goals and objectives. The reward management system of an organization is concerned with the development of strategies and policies that aims at providing fair and equitable rewards to the employees as per their performance (Deeprose, 2006). In this context, this report presents an overview to senior management on the significance and i mportance of developing proper rewards system for enhancing employee commitment. The factors that should be considered by the company at the time of designing and implementing reward system are discussed in detail in this report. At last, the report recommends the company regarding the methods to be adopted for the successful implementation of the reward system. Overview to Senior Management on Reward Systems Objectives Significance of Designing Reward System Objectives of Reward System The reward system developed by the Cheesy Pizza Company should have the following objectives in order to develop a healthy workplace environment that will help in motivating employee morals for successful opening of its new outlets: Employee Retention and Satisfaction: The reward system of the company will have a direct impact on the attraction and retaining of employees. This is because greater the rewards that the employees are able to receive higher will be the employee retention and satisfaction (Shields et al., 2016). The Cheese Pizza Company is planning to open new outlets and thus need to hire and recruit talented employees for achieving its strategic goals and objectives. Thus, the company in order to attracts and retain talented and competent employees need to develop an efficient reward system in comparison to the competitors. Therefore, the Cheese Pizza Company should develop a reward system that is able to attract employees and reduce their turnover rate. Improving Employee Performance and Commitment: The reward system developed by the company should be directly linked to the employee performance. The rewards received by the employees should be in accordance with their value contributed to the company. This will help the company to enhance their organizational commitment level and thus they will work harder to achieve its strategic goals and objectives. The new rewards system developed by the company should be based on the principle of performance-outcome expectancy which states that individuals tend to act in certain manner for achieving some specific outcomes. The reward systems should be able to increase the employee commitment level so that they are able to perform their job roles and responsibilities effectively (Armstrong, 2010). Developing Positive Organizational Culture: The reward system should be able to develop a positive culture within the Cheese Pizza Company. The reward system has a direct impact on the motivation and satisfaction level of the employees that influence the development of an innovative, participative and competence based culture within the company. The employees will develop a sense of co-operation between themselves if they are equally rewarded for their personal efforts towards achievement of the companys goals and objectives. The employees should develop a belief that better efforts will help in the achievement of better outcomes. The reward system of the company should be able to provide encouragement to the staff members for achieving a determined target and motivating them to work in team for achieving the set goals and objectives (Golembiewski, 2000). Developing Skills and Competency in Employees: The reward system should be able to continuously provide encouragement to the employees for improving their skills and competencies. The reward system should provide higher benefits to the competent employees and adding more value to the company. As such, the employees will be motivated to improve their skill set and competency level by gaining proper training and development for improving their job performances. The reward systems should also provide extra benefits to the employees who have outstanding performances so that all employees undertake more initiatives for improving their skill level. The skills and competencies such as proper communication and customer service are more important to Cheese Pizza Company. Thus, the company should place in reward system in its new outlets that seek to provide extra benefits to the employees with good communication skills and customer service. This will motivate other employees of the company to attend relevant training courses for improving their required skill level (Shields et al., 2016). Reinforcing the Organizational Structure: The reward system of the company should be able to influence its organizational structure. The company should modify its organizational structure in accordance with its rewards system. The company in this context wants to promote its teamwork for successful opening of its new outlets and thus should adopt an equal pay structure. The company should develop a united structure to encourage teamwork by developing and implementing fair and equitable reward system (Erasmus and Schenk, 2008). Aligned With Strategic Goals And Objectives: The reward system of the company should be able to achieve its strategic goals and objectives. The strategic goals of the company includes successful establishments of its new outlets in the Hong Kong and Singapore locations and thus it is highly important that its reward system should be developed in accordance with this strategic goals. This is necessary to provide proper encouragement to the employees to meet their job expectations in a new business environment (Bratton and Gold, 2012). Importance of Paying Careful Attention to the Design of the Reward System The Cheese Pizza Company is required to pay proper attention towards the designing of the reward system for ensuring the development of a motivated and committed workforce diversity that helps it to achieve its strategic goals and objectives (Rees and Smith, 2014). The company needs to pay careful attention to the designing of its reward system due to following reasons: Cost Effective: The Company needs to ensure that its reward system is cost-effective. This is necessary because it is very costly for the company to maintain and develop a reward system as higher benefits provided to the employees tend to increase its operational cost of labor. As such, the Cheese Pizza Company is planning to open new outlets in new locations and thus should develop a reward system that is cost-effective. This is because the company needs adequate investment for conducting its business operations in new business environment of Hong Kong and Singapore. The reward system of the company should thus be based on rewarding all employees equally with no extra benefits offered to some specific employees (Bratton and Gold, 2012). Market Position: The reward system of the company should be successful in competitive business environment of Hong Kong and Singapore. The company thus should develop a reward system that aims to promote teamwork and thus can reduce the competition level. The employees will focus on achieving the benefit of the overall team in order to successfully carry out the business operations in the new competitive business environment. This will also reduce discrimination among the employees and thus they will equally contribute to the achievement of strategic goals of the company (Erasmus and Schenk, 2008). Future Oriented: The Company at the time of developing the reward system should also place emphasis that it should be flexible and adaptable to be modified as per the future needs and requirements. The company is presently operating in a new business environment and thus will aims to develop a cost-effective reward system. However, with its future growth and development, the company will modify its strategic goals and objectives and thus its reward system will also need modifications (Bratton and Gold, 2012). Alignment with Business strategy and Mission: The Company will establish its new strategic goals in the new environment of Hong Kong and Singapore that will define its mission statement. As such, it is required for the company to align its business strategy and mission statement with the reward system. The company at the time of developing its reward system should ensure that its reward system adequately meets it strategic goals and properties. This will help in ensuring that employees receives rewards and benefits as per the companys new budget for achieving a congruence between its income and expenditure level. The mismatch of companys strategies and reward system can negatively impact its growth by creating a budgetary deficit (Erasmus and Schenk, 2008). Fair and Equitable: The company needs to ensure at the time of designing its reward system that it should promote fairness and equality among the employees. The employees should believe that they are paid right and just as per their performance. This is necessary for overcoming the discrimination among the employees. The reward system should provide equal compensation to the employees based on their designation level. Thus, all employees of same designation should be rewarded equally with extra benefits linked to their performance. This is necessary to encourage teamwork and co-operation among the employees so that they remain integrated in achieving the new strategic goals and priorities of the company (Armstrong et al., 2010). Thus, for all the above mentioned reasons it is necessary for the company to pay attention at the time of developing its reward system so that the company is able to achieve sustainable growth in new business environment. The reward system should be cost-effective, aligned with business strategy and mission; future oriented, aligned with market position and should be fair and equitable. The presence of all these elements is necessary in the reward system of the company so that it can successfully carry out its operations in the new location of Hong Kong and Singapore. Comprehensive Overview of the Factors to be Considered for Designing and Implementing a Reward System for its new Locations Designing the Reward System The factors that need to be considered by the Cheesy Pizza Company at the time of designing a reward system are as followsMonetary Vs Non-Monetary Reward System: The Company needs to carefully evaluate the benefits and drawbacks of both monetary and non-monetary reward system before their adoption. Monetary reward system is money based system that includes benefits such as bonuses, stock options, profit-sharing to the employees as rewards for their high performance. On the other hand, non-monetary reward system includes providing new opportunity to the employees such as flexible work schedules, vacations and holidays. Thus, the company at the time of designing the reward system should integrate the characteristics of both the monetary and non-monetary reward system so that its reward system remains cost-effective and accordance with the goals and objectives. The company should provide monetary as well as non-monetary rewards to the employees for reducing its operational cost. The com pany should minimize its operational cost required in developing and maintaining reward system as it is entering in the new marketplace and thus requires huge expenditure for opening new outlets (Deeprose, 2006). Pay Structure: the Company at the time of designing the reward system also needs to consider the type of pay structure they will be offering to the employees. The pay structures determine the varying levels of pay for differing jobs within the company. The company needs to decide the type of pay structure they are offering to the employees. The single pay structure refers to the same compensation offered to the employees as single hourly pay rate or single weekly or monthly salary while double pay structure refers in which on group of employees receives lower compensation as compared to other employees. The company is recommended to adopt a single pay structure that provides equal benefits to all the employees for proving them equal motivation and avoiding any chance of discrimination among them (Armstrong et al., 2010). Base pay and Incentives offered: The Company also need to consider the base pay and incentive that they will be offering to the employees under the reward system. The pay structure of the employees includes there base pay and variable pay. Base pay refers to the guaranteed pay provided to the employees while variable pay refers to the benefit received by the employee based on their performance or organizational results. The Company should also decide the type of incentives offered to the employees in the reward system. The incentives types include team incentives or individual incentives based on the needs and requirements of the company. The team incentive refers to the bonus provided to the overall team based on their performance while individual incentives refers to the extra benefit provided to an individual employee linked to the performance. The Company is recommended to adopt group incentive plan in order to reward equally to all employees at similar designation level. This wi ll promote teamwork within the company necessary for achieving its strategic goals and objectives (Erasmus and Schenk, 2008). Extrinsic Vs Intrinsic: The extrinsic reward system refers to offering tangible rewards to the employees that is external to an individual while intrinsic refers to intangible rewards such as personal achievement, professional growth and accomplishment. The Company should decide the type of benefits that they will be offering to the employees at the time of designing its reward system. The company should provide both extrinsic as well as intrinsic benefits to the employees for meeting their varying personal needs and requirements (Kazmi, 2008). Position of the Company in the Labor Market: The Company also needs to consider where it needs to position itself in the labor market is. The position of the company depends on its financial state and external market environment. The Company needs to carefully evaluate its financial capabilities and the external environment situations at the time of designing its reward system. This is necessary so that the reward system of the company is able to attract and recruit the talent workforce (Rees and Smith, 2014). Implementation of the Reward System: The following factors need to be taken into account by the company at the time of implementing its reward system: Proper Communication to the Employees: The Company must ensure that its reward system is properly communicated to the employees. The employees at the time of joining the company need to be provided all the details regarding their pay structure and incentives. The company should communicate to all its present employees about the necessary changes it has made in the reward system for entering the new markets of Hong Kong and Singapore. This is necessary so that employees accept the new pay structure and strives their best for achieving its strategic goals and objectives (Grnig and Khn, 2009). Employee Training: The employee should be provided proper training so that they develop the required skills set and capabilities to carry out their job role effectively in the new operating business environment. The department managers should be properly trained so that they can properly explain the pay structure o the employees in new business environment. Obtain Trade Union Support: The Company before implementing the reward system should adequately achieve the support from the trade union so that new pay structure becomes acceptable to all the employees (Deeprose, 2006). Gaining Employee Feedback: The Company is also required to encourage employees for sharing their feedback about the new reward system. This will help the Company to understand the deficiencies in the new reward system and thus adopt the necessary changes so that it becomes acceptable to all the employees. The employee feedback is essential for empowering employees that helps in increasing their commitment level (Jex, and Britt, 2014). Conclusion Thus, it can be inferred d from the overall discussion held in the report that designing and implementation of proper reward system is essential for the Cheesy Pizza Company to attain success in the new business environment of Singapore and Hong Kong. The new reward system developed by the company should be equitable, cost-effective, aligned with business strategy and should be future oriented for developing a motivated workforce. The company at the time of designing the reward system need to consider the factors such as pay structure and types of rewards and incentives it should adopt for achieving its newly determined strategic goals and objectives. The successful implementation of the reward system requires proper support from the employees through adequately communicating them about the benefits of new reward system and resolving their concerns about the same References Armstrong, M. 2010. 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