Chapter 5- Reward and Compensation Management
This chapter explains the HRM function of reward and compensation and subsequently its impact on organizational performance. First, the reward and compensation as a concept is explained then we advance to elaborating on the reward and compensation strategy at Genpact. After establishing the background and the given framework the chapter investigates the strategic integration and then the major elements of reward and compensation integration and organizational performance is discussed. The research findings are described and at the end, discussions on results are outlined.
Employment is typically an exchange relationship between employer and employee. Employees provide organisations with something …show more content…
It provides recognition and motivation to high performers to continue with their winning ways, while also raising the bar higher for mediocre performers to perform better. The reward may not necessarily be financial but clearly differentiates high performers to keep them motivated and committed. Genpact has an online rewarding system called ‘Cheers’ that enables managers to instantly reward deserving employees with Cheer Awards (Bronze / Silver / Gold / Diamond / Platinum). The Diamond and Platinum Awards are extremely prestigious and are conducted in a grand manner with a ceremony felicitating the employee in front of their families and the leadership team. The Platinum Award is Genpact’s highest honor and goes to the top 0.1% performers of the company. Every year, these individuals are sent on a week long vacation to an exotic location with their partner, which culminates in a ceremony fit for the winners. It generates tremendous aspiration and excitement in the company and motivates employees to perform better each time. Performance management is a critical area for Genpact and the management therefore tends to spend a lot of effort in planning each employee’s career and aligning their goals with larger organizational goals. When every goal an employee is appraised on is linked to a bigger organizational goal, accountability and ownership gets driven …show more content…
As a key HRM function, reward and compensation is required to assimilate with overall business strategy in order to increase organizational performance (Gomez-Mejia and Balkin 1990; Rajagopalan 1997; Salter 1973). Such integration with the overall policy with regards to reward and compensation defines whether the reward and compensation policies and practices are aligned with designed goals of the organization, which is formulated based on an analysis of the organizational internal and external environment. Scholars suggest that HRM strategic integration should be examined on both levels of integration and also
This chapter explains the HRM function of reward and compensation and subsequently its impact on organizational performance. First, the reward and compensation as a concept is explained then we advance to elaborating on the reward and compensation strategy at Genpact. After establishing the background and the given framework the chapter investigates the strategic integration and then the major elements of reward and compensation integration and organizational performance is discussed. The research findings are described and at the end, discussions on results are outlined.
Employment is typically an exchange relationship between employer and employee. Employees provide organisations with something …show more content…
It provides recognition and motivation to high performers to continue with their winning ways, while also raising the bar higher for mediocre performers to perform better. The reward may not necessarily be financial but clearly differentiates high performers to keep them motivated and committed. Genpact has an online rewarding system called ‘Cheers’ that enables managers to instantly reward deserving employees with Cheer Awards (Bronze / Silver / Gold / Diamond / Platinum). The Diamond and Platinum Awards are extremely prestigious and are conducted in a grand manner with a ceremony felicitating the employee in front of their families and the leadership team. The Platinum Award is Genpact’s highest honor and goes to the top 0.1% performers of the company. Every year, these individuals are sent on a week long vacation to an exotic location with their partner, which culminates in a ceremony fit for the winners. It generates tremendous aspiration and excitement in the company and motivates employees to perform better each time. Performance management is a critical area for Genpact and the management therefore tends to spend a lot of effort in planning each employee’s career and aligning their goals with larger organizational goals. When every goal an employee is appraised on is linked to a bigger organizational goal, accountability and ownership gets driven …show more content…
As a key HRM function, reward and compensation is required to assimilate with overall business strategy in order to increase organizational performance (Gomez-Mejia and Balkin 1990; Rajagopalan 1997; Salter 1973). Such integration with the overall policy with regards to reward and compensation defines whether the reward and compensation policies and practices are aligned with designed goals of the organization, which is formulated based on an analysis of the organizational internal and external environment. Scholars suggest that HRM strategic integration should be examined on both levels of integration and also