Cheezy Pizza Company Human Resource Management

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Secondly, the design of the reward system should be focused more for the purpose of market expansion and future development for the company (Wright, 2004). Obviously, the business expansion and future development are key objectives for firms. A reward system will function as an instrument to drive the performance of individuals, and eventually the organization. Besides that, the reward system must compliance with the law and there have been numerous of legal interventions into the realm of reward management since the rise of industrialization. These demonstrate the ways in which legal regulation can be seen to shape reward practices. The Equality Act 2010 (EqA), The National Minimum Wage Regulations 1999 and the Working Time Directive 1998 are forced in the legal context for reward that influence employee reward practices (Beardwell and Thompson, 2014). Hence, it needs to be an essential part of the human resource program to improve the performance of staff and upscale the operation of the company. It also should be designed to help the company adapt to crisis or new business situations. And at the end of the day, the benefits from the system must serve for the business development for the company.

Thirdly, a balanced reward system is important to encourage employee’s performance and achieve company’s business goals. There are two main types of reward, intrinsic and extrinsic. The intrinsic reward is the internal feeling of satisfaction that an individual feel after accomplishing something in their work. It is intangible and comes from the employee himself. Meanwhile, the extrinsic reward is more visible and usually granted to individual for their excellent performance. It can be in cash or in form of a trophy or certificate that recognize the contribution of the employees. Both intrinsic and extrinsic rewards are important for a reward system (Beardwell and Thompson, 2014). Therefore, apart from including tangible incentives, the reward system should be designed to provide the employees with suitable responsibilities and work environment so that they will feel rewarded and encouraged on completion of their jobs. Therefore, the reward system should include some non-financial incentives, such as vouchers and excellent performance recognition.

Fourthly, a misalignment of this system would result in negative impacts to a company so that careful design should be taken into consideration in order to make this system suitable with the organizational goals and structure. Thus, it is important to align the reward system with the company’s objectives and employees’ needs. A company’s business’s strategic business goals always are usually established first. A reward system is built later. Therefore, the compatibility between the reward system and company’s strategic goals should be secured. The reason behind this is to design a reward system that promotes the behaviors and practice that are instrumental to complete the company’s business strategy and human management approach. Reward system should be a complementary aspect of the overall company’s strategy and goals. Therefore, more attention should be paid to the design of reward system to address the needs for employees who are the people to help the company achieving its goals.

Finally, discrimination is a sensitive factor that a reward system should not get involved. Therefore, the reward system must be transparent and clear for both management and employees. Different modes of pay structure should be used to avoid discrimination such as performance based pay, contribution based pay and team-based pay.

In summary, the design phase is the most important phase for building a reward system for a company. A successful system is a system that works towards helping the company achieving its business goals, forming a strong workforce and organizational culture. Thus, cost-effectiveness, business expansion, compatibility with company’s goals and employees’ needs and the avoidance of discrimination are important factors that should be paid attention during the reward system design.

- Factors to consider in designing of reward system for Cheezy Pizza

The Total Reward model reflects all aspects and elements of a complete reward system with the purpose of attracting, retaining, motivating and engaging employees’ performance via tangible and intangible incentives as a way to achieve the business goals for the company (Figure below). In this model, there are several factors that need to be paid attention during the design process of reward system. These include the technical issue, payment system, the alignment with business goals and HR policies, and the pay structure.

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Figure: The Total Reward model (Brown and Armstrong, 1999)

Firstly, technical issue refers to the issue related to the design of role of pay. There are two types of rewards, extrinsic and intrinsic. Intrinsic reward is an intangible form of recognition or a conscious achievement while extrinsic reward is tangible and delivered to the employee after he manages to gain some achievement in work. Intrinsic reward usually arises from within an employee while extrinsic reward is like a trophy or a visible gift given to the performer. In another word, intrinsic reward is non-monetary while extrinsic is mostly in monetary forms. Usually, people always think of monetary as the most popular way for recognizing the contribution of employees. However, non-cash incentives are considered to have more positive impacts. In case of Cheezy Pizza, the design of reward system should have a balance between intrinsic and extrinsic rewards. As a retail firm and the new entrant, the satisfaction of employees is very important while the financial burden of new operation is heavy. Therefore, motivation for staff can be reached by creating motivation via performance based rewards and recognition. Favorable working conditions and non-cash incentives such as vouchers for free meals at Cheezy Pizza outlets are examples of incentives. Besides, financial incentives such as bonuses and excellent performance rewards should also be included in the system.

Secondly, an important factor that needs to be taken care of during the design of reward system is the payment system. There are several modes of payment, including performance-based pay, skills-based pay, competence based pay, pay for contribution, team based pay, and payment based on organizational performance. Individual performance related pay (PRP) is one of the most popular pay schemes that connect the performance of an individual with the pay progression. The individual performance is referred to a set of objectives and targets that to evaluate