Rewards and Motivation
U.S. companies face greater pressures today than ever before to improve cost efficiency and in the same breathe taking their products to market faster, cheaper and with stronger innovation, regulatory compliance, responding to ever increasing regulations around the world that often conflict with each other. A company must also be nimble enough to change direction quickly and cost-effectively when market conditions shift. At the same time, they still must provide an environment in which people want to be employed and want to excel. This is where old models for rewards management fall flat and new rewards approaches must be implemented to make a more efficient and productive organization. (Chang)
…show more content…
Key performance indicators (KPI’s) were developed so that on the store level the managers would be able to observe statistics and analytical data pertaining to the store such as P & L statements, Historical inventory data, Rx, Lost prevention and countless other parameters. With this data managers were able to discover gaps in statements and therefore implement action plan to improve them. Based on graded KPI’s, sales improvement, gross profit improvement, inventory and expense control; the company was able to arrive to a quantitative formula that bonuses would be based upon that were better aligned with the companies business objectives. With this approach the current reward system better motivates managers better manage employees and essentially perform because their bonuses better reflected their effort sewn. I believe that it is a good program because it truly highlights the a manager’s knowledge of the systems and programs used to create a improvement within an establishment and one is rewarded for their knowledge and management; this also allows for performers to shine and be more easily recognized when time for promotions, so great deal of pride is instilled into the management whose long hours don’t go in vain.