Examining Reward, Motivation and Incentive Systems for the Staff Currently Employed at the Japanese Subsidiary of Sujdavdan

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Table of Contents

Executive Summary
Introduction
Incentives and Rewards to Enhance Performance at Sujdavdan Hotels
Conclusion
Recommendations
Reference List

Executive Summary

Human resource or workforce in an organization is a crucial element and the driving force of all the other elements, for instance, the assets. For this reason, they should be handled with great care so that they are always motivated to ensure they perform at their best. This will not only lead to individual excellence but also better performance of the organization as a whole.

Motivation among employees could be achieved through various means, for instance, through provision of incentives and rewards. This could either take monetary or non monetary form. In designing compensation and reward systems, some considerations should be put in place to allow for success depending on different employees’ needs. The best ways through which they could be motivated must be sought.

For instance, some would prefer being assured of job security to interesting jobs, others would prefer favourable working conditions to productivity and achievement while some would go for satisfaction of social needs rather that ego and job satisfaction. These differences could be brought about by cultural differences.

It is, therefore, the task of the human resource management to take all aspects into consideration to ensure that all employees are motivated at all times. This will help in increasing productivity and profitability, which will be made possible through efficiency, effectiveness and economy in carrying out different organizational procedures and processes.

Introduction

Human resource management is an organization’s function that entails all aspects that are associated with the work force in a particular organization, company or institution. It entails aspects like recruitment, coordination and control of the people working in an organization.

Some of the issues linked with human resource management include hiring, compensation and benefits, safety and welfare, communication and motivation, employees’ performance management and administration and training among others.

Human resource management is an essential function in every organization as it enhances overall efficiency and effectiveness of the organization through smooth running of all the activities and operations that are carried out in the organization. It falls under one of the major components of the management function, which is staffing and the other ones being planning, organizing, coordination and controlling.

The human resource in an organization is a valuable asset that determines the success or failure of the organization through their efforts towards utilizing other assets in the company. It is, however, only through their proper management that maximum efficiency, effectiveness and profitability can be achieved (Mathis and Jackson 2008).

This paper discusses various aspects associated with human resource management with much emphasis being given to the issues of reward, motivation and incentive systems for the staff currently employed at the Japanese subsidiary of Sujdavdan.

Background Information

The concept of reward, motivation and compensation has evolved over the last century in different parts of the world especially in the United States of America. In the past, employment and compensation philosophy focused mainly on wages or payments but little considerations were given to the working conditions in which the employees worked, an aspect that is important in enhancing performance and success of an organization.

Employees were treated merely as equipment, which would be replaced every now and then. Currently, the concept has changed and employees ought to be treated in a humane manner to motivate them to perform better. Attracting and retaining quality and appropriate employees has become a major challenge that is faced by businesses in today’s economy where competition is on the rise day by day.

An organization’s rewarding and compensation policy is, therefore, an important tool that should help it in attracting, motivating as well as retaining employees. Sujdavdan Hotels is a multi-level company with subsidiaries in different parts of the world and hence has a big task of developing all the different levels of staff mainly through looking at the element of motivation (Deresky 2002).

Aims

The main aim of carrying out this research is to have an in depth investigation of the concept of reward, motivation and incentive systems for the staff currently employed at the Japanese subsidiary of Sujdavdan. This is in an effort to come up with effective ways through which the employees in the subsidiary and the entire organization could be motivated to better their performance and hence that of the organization at large.

Scope

The study will be exhaustive, taking various perspectives associated with the concept of motivation of employees. A general overview will be given in regard to the incentives and rewards aimed at enhancing performance at Sujdavdan Hotels after which the research will be narrowed down to the Japan subsidiary and the different levels of employees involved.

Incentives and Rewards to Enhance Performance at Sujdavdan Hotels

There are various ways that could be utilized by organizations in an effort to motivate their employees and hence improve their performance, for instance, incentives and rewards. Incentives and rewards occur in different forms and the human resource manager and other responsible individuals could choose any of them depending on a situation and suitability.

The Maslow’s hierarchy theory of human motivation which was proposed by Abraham Maslow categorizes human needs into different levels. There are some levels where some are more fundamental than others.

Different cultures are characterized by different needs and, therefore, different rewards and incentives would motivate them. The satisfaction of these needs can significantly affect the performance of an individual (Healey 2008).

There are several things which can be done in order to meet these basic needs that are necessary for employee’s motivation. For instance, employers at Sujdavdan Hotels must assure the employees of the security of their employment. This will encourage employees to work harder for the success of their organization. If employees are not guaranteed their security in the organization, they will have low incentive to innovate (Holden 2002).

According to Terpstra (1979), appropriate payment is also an incentive that would enhance motivation and promote performance at Sujdavdan Hotels. The expectancy theory of motivation states that employees will tend to work hard if they believe that hard work will lead to better performance and that better performance will lead to rewards.

In other words, this theory shows that rewards can significantly affect the performance of employees. Employees can be encouraged to put more effort in their respective areas if they are rewarded with good payment. Otherwise, employees will be discouraged and hence their productivity will be reduced if they are poorly paid.

The element of equity also plays a pivotal role in improving the employee’s performance. Employees will be discouraged if they feel they are being discriminated against. On the other hand, employees will be satisfied when they believe their compensation is equal to that given to others who make similar contribution in the organization (Chiles and Zorn 1995).

Not all incentives and rewards are monetary as most people may think. Conducive working conditions are a motivational aspect. Mendenhall, Punnett and Ricks (1995) explain the Hertzberg’s two factor theory which proposes that people are motivated by both satisfaction and psychological growth.

These two factors contribute significantly in motivating individuals. Hygiene factors can significantly affect the level of employee’s satisfaction. According to this theory, hygiene factors are of great importance in an organization since their presence leaves the employees satisfied. Proper working conditions enhance inner satisfaction that in turn promotes better performance.

Incentives and Rewards for our PCNs working in Japan

The PCNs are a crucial component of the working force in the Japan subsidiary of the Sujdavdan Hotels. The senior managers carry out critical functions of the organization, for instance, decision making and coordinating the middle level and first line managers and making things happen. They, therefore, need some incentives and rewards to motivate them to carry out their duties in an appropriate manner.

Some of the incentive and rewards suited for the PCNs include proper working conditions where all the necessary resources needed to carry out their duties are adequately provided and increase in payment according to performance.

Provision of vacations and holidays is also a way of motivating them where they will feel valued and appreciated and at the same time have a break to refresh and hence resume work with enough vigour (Leitner 2008).

Incentives and Rewards for our HCNs working in Japan

The Host Country National (HCN) employees also require motivation to carry on with their duties effectively. The middle managers, for example, should be given training incentives to help in sharpening their managerial skills and knowledge. This will help in growing their career, an aspect that they would appreciate and put extra efforts in their works. Compensation for extra work done is also advisable.

The newly hired should be provided with good working conditions to boost their performance and help them to quickly adapt to the new environment. They should also be appreciated for any good performance to enable them to continue working even harder. The operational staff should not be ignored but treated and valued according to the contributions they make to the organization.

An increase in pay and promotion for any extra skill gained would, for instance, work in motivating them. Team work should also be encouraged and rewarded as people in Japan value group achievements as opposed to individual achievements (Ashford 1989).

Staff from China

Unlike employees from Indonesia who do not take pay as a form of motivation to work harder, those from china are very impressed by pay rise and most of them are seen leaving current jobs because of promises of higher pays.

Payment increase is, therefore, a good motivational tool that Sujdavdan hotels in Japan would use to motivate staff from China. I-Can-Do-Better-Than-You Syndrome is also common among staff from China. They have the desire to grow and develop in their career and hence provision of training opportunity motivates them (Thomas and Velthouse 1990).

Staff from Thailand

The situation in Thailand is different from that in China. Employees from Thailand are not so much motivated by pay but rather good working conditions. Value and appreciation are key aspects. Matching the employees’ talents with their job is enough motivation.

Clear stipulated expectations also keep Thailand employees motivated. Friendship is the other motivation factor where the staff looks forward at establishing and maintaining friendship ties in the work place (Maslow 1943).

Staff from the United States of America

Motivation of staff from the United States of America takes different forms. Although high pay is appreciated it is not a major drive. Employees are more concerned with achieving needs of higher orders for instance recognition, challenging jobs, advancement opportunities and chances of showing creativity.

They mainly have social and esteem needs which could not be well rewarded in monetary terms as a form of motivation (Sullivan 1989).

Conclusion

From the discussion above, it is evident that the aspect of reward, motivation and compensation is a complex but essential aspect in an organization. This is because employees are crucial elements that need to be treated well so as to deliver their services in an appropriate manner, which will be helpful in both personal as well as organizational level.

Sujdavdan Hotels should, therefore, be ready to invest in all motivational strategies (both monetary and non-monetary) in an effort to achieve success in all its processes and activities. Employees’ needs should also be identified so that they may be satisfied effectively by provision of the right motivation incentives and rewards.

Recommendations

In every organization, human resources play a significant role in determining the success of an organization. The productivity of other resources used in an organization depends on the human resources.

For instance, other resources used in production in an organization like machines significantly depend on the human resource control. This indicates that the human resources play a fundamental role in determining the success of an organization.

For better performance to be achieved in Sujdavdan Hotels the following should be adhered to; there should be compensation. Compensation is the reward given to employees for the amount of work they have done in a specific time period. Compensation could take different forms, for instance, overtime payment and minimum wage. Empowerment is another issue that should be considered.

This entails the way management promotes the process of sharing of the power with those below them. It facilitates the process of decision making as well as the problem solving process and creating a sense of identity (Anca and Vazquez 2007).

Cornelius (2002) asserts that equality in the reward and incentive systems in an organization should also be maintained under all circumstances. There are should be standard measures in all the subsidiaries of the Sujdavdan Hotels and staff in same categories and those who perform to a certain performance level should be rewarded equally without any form of discrimination.

This is because any form of discrimination may lead to discouragement of those discriminated against lowering their performance and that of the organization at large. Cultural differences should also be considered in the rewarding process as different people in the different subsidiaries in different country would have varying needs and hence some forms of incentives would work for some and not for others.

Reference List

Anca, D.C. and Vazquez, A. 2007. Managing Diversity in the Global Organization. New York: Palgrave: Macmillan

Ashford E. 1989. The experience of powerlessness in organizations, Journal of Organizational Behaviour, 43 (1) 207- 242

Chiles M. and Zorn E. 1995. Empowerment in organizations, Journal of Applied Communication, 23 (1) 1- 25

Cornelius, N (Ed) 2002. Building Workplace Equality. Ethics, Diversity and Inclusion, London: Thomson

Deresky, H. 2002. International Management. Managing across Borders and Cultures, London: Prentice Hall

Healey, F. 2008. Race, Ethnicity, Gender and Class: The Sociology of Group Conflict and Change. New York: Sage Publications.

Holden, N.J. 2002.Cross-Cultural Management. A Knowledge Management Perspective, London: Prentice Hall

Leitner, K. 2008. Cultural diversity: Making staff differences work. NZ Business, 22(4), 16-17

Maslow, A. H. 1943. A theory of human motivation. Psychological Review, July 1943. 370- 396.

Mathis, R.L and Jackson, H.J. 2008. Human Resource Management. 12^th ed. USA: Cengage learning

Mendenhall E. M, Punnett, B. J. and Ricks A. 1995. Global Management. U.K: Wiley-Blackwell

Sullivan, J.J. 1989. Self Theories and Employee Motivation. Journal of Management vol. 15 no. 2 345-363

Terpstra, D. E. 1979. Theories of motivation: borrowing the best. Personnel Journal, 58. 376.

Thomas W. and Velthouse A. 1990.Elements of Empowerment: An Interpretive Model of Motivation, Journal of Management, 15 (4) 666 to 681

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