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XYZ Ltd Has Just Introduced a Performance-Based Reward System for All

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Essay

XYZ Ltd. has just introduced a performance-based reward system for all production employees. The plan pays employees a team-based bonus based on the reduction of labour costs per unit in the production department. Describe three strategies to ensure that this and other performance-based reward systems are effective. Your answer should also briefly state the type of reward system used by XYZ Ltd.


Definitions:

Type Of Reward

Refers to the various forms of compensation or recognition given to individuals or groups for reaching specific goals or desired behaviors.

Expectancy Theory

A motivation theory which suggests that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Barry Staw

A renowned organizational psychologist known for his work on concepts such as organizational commitment and the escalation of commitment.

Effective Climate

A work or organizational environment that enhances performance and wellbeing among its members.

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