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The document discusses reward systems, specifically focusing on payment by time and payment by output, highlighting their common problems and potential improvement measures. Issues such as lack of motivation, perceived unfairness, and risk of burnout are addressed, along with solutions like setting clear goals and establishing distinct evaluation criteria. Examples from companies like Accenture and Salesforce illustrate how these systems can be effectively implemented and managed.

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15 views

Group5

The document discusses reward systems, specifically focusing on payment by time and payment by output, highlighting their common problems and potential improvement measures. Issues such as lack of motivation, perceived unfairness, and risk of burnout are addressed, along with solutions like setting clear goals and establishing distinct evaluation criteria. Examples from companies like Accenture and Salesforce illustrate how these systems can be effectively implemented and managed.

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My Trần
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tên Công việc (tương ứng với slide và thuyết trình)

Hồ Thị Phương Anh IV. Example + V. Conclusion


Trần Vũ Kỳ Duyên I. What is reward system? + IV. Q&A
Trần Thị Diệu My III. Improvement measures
Lê Ngọc Ái Vy II. Common problems in reward systems

5. What are problems of reward system? How can they be solved?

I. What is reward system? (Duyên)

The reward system motivates and recognizes employees for their performance, contributions,
and achievements. It encompasses financial and non-financial rewards designed to align
employees' efforts with organizational goals, enhance productivity, and improve job satisfaction.

There are a lot of types of reward systems but today, our group will talk about Professor Stan
Siebert’s systems. He gives us 2 of them: payment by time and payment by output. And we will
discuss about the problems as well as the improvement of these types of reward systems.

II. Common problems in reward systems: (Vy)


-Designing a reward system that motivates employees and drives performance is crucial for any
organization. However, there are common pitfalls that can hinder its effectiveness. Today, we
will focus on two widely used methods of Professor Stan Siebert: payment by time and payment
by output. Let’s explore these in detail

1. Payment by Time

-a system where employees are compensated based on the hours, days, or months they work.
While straightforward, this approach has several challenges:

 Lack of motivation for higher productivity:

-Employees may feel unmotivated to work efficiently or improve their performance because their
pay remains constant regardless of productivity.

 Perceived unfairness:

-Employees who work hard and perform well may be paid the same as others who are less
productive, leading to unhappiness.

Example: An office worker might spend eight hours at their desk but only produce two hours'
worth of meaningful work.

Conclusion

Therefore, payment by time must be complemented by performance metrics to ensure fairness


and encourage productivity.
B/Payment by Output

where employees are rewarded based on the quantity of work they produce. Although this
method emphasizes results, it has its own set of problems:

 Unfairness for complex tasks:

-In professions that involve creativity or complexity, determining output can be difficult and may
not correctly reflect efforts.

 Risk of Burnout:

-Employees may overwork themselves to achieve higher pay, negatively impacting their health
and long-term productivity.

Ex: A factory worker paid per item might rush the assembly process, resulting in defective
products that require rework.

Conclusion

-While this system encourages results, it needs to be balanced with quality control and
collaborative incentives to avoid these pitfalls.

III. Improvement measures. (Dmy)


1. Payment by time:
Measure for problem: Lack of motivation for higher productivity
 Set clear goals and have methods to encourage productivity:
 Ensure that the goals are specific, measurable, achievable, relevant, and time-
bound. Instead of asking to "increase sales," set a specific goal like "increase sales
by 20% in the next quarter."
 Create a results-based work environment by shifting the focus from "working
office hours" to "achieving specific results," so employees can have flexibility in
their time management while meeting goals, as long as they are within the
deadline of that goal. From there, reward individuals or teams that successfully
complete the set goals.
Measure for problem: Perceived unfairness
 Establish clear performance evaluation criteria:
 Identify clear, transparent, and public criteria for evaluation and rewards, which
may include: the number of tasks completed, the quality of work, creativity,
collaboration with colleagues, or contributions to the organization’s overall goals.
These criteria must be specific, measurable, and aligned with the organization's
strategic objectives.
2. Payment by output:
Measure for problem: Unfairness for complex tasks
 Establish distinct evaluation criteria appropriate to the complexity of each task:
 For complex tasks that require creativity, the evaluation criteria should focus on
creativity, innovation, and problem-solving methods.
 For simpler tasks, emphasis should be placed on criteria such as accuracy,
efficiency, adherence to processes, and quality standards.
Measure for problem: Risk of Burnout:
 Manage workload effectively and conduct regular surveys for employees:
 Distribute tasks fairly and reasonably among employees, ensuring that the
workload does not exceed their capacity.
 Conduct regular surveys to assess stress levels, perceptions of workload, and
work-life balance. For example: "Do you feel overwhelmed by your workload?"
or "Do you feel you have enough time for personal activities outside of work?"

IV. For example: (Phanh)

1. Payment by Time:
Example Company: Accenture

Model: Accenture, a global consulting firm, typically pays its employees based on the hours
worked. This includes hourly wages for entry-level consultants and salary packages for more
experienced roles, which may still incorporate overtime pay.

Solution: This model allows Accenture to maintain flexibility in workforce management.


Employees are compensated for the time they invest in client projects, promoting a culture of
thoroughness and dedication. It also helps in tracking billable hours for client billing, ensuring
transparency and accountability in project management.
2. Payment by Output
Example Company: Salesforce

Model: Salesforce employs a payment by output model for its sales teams, where compensation
is heavily tied to performance metrics such as sales targets and revenue generated.

Solution: By implementing a commission-based structure alongside a base salary, Salesforce


motivates employees to achieve specific sales goals. This output-based approach encourages
high performance and directly links employee earnings with company success, fostering a
competitive yet collaborative environment.

V. Conclusion: (Phanh)

Payment by Time: This model is advantageous for services that require flexibility, expertise,
and ongoing support.
For companies, this model can foster a deeper relationship with clients, as it enhances
collaboration and responsiveness to evolving needs.

Payment by Output: This model encourages results-oriented thinking, with both parties
working towards a common goal. The client benefits from understanding the costs involved in
achieving the defined goals, promoting trust and satisfaction.
VI. Q&A (Duyên)

câu hỏi nhóm hỏi lớp

1. Why might employees feel it’s unfair to be paid by time?

Employees who work hard may be paid the same as those who do less work.

2. Can you give an example of unproductive behavior in a time-based payment


system?

An office worker might spend eight hours at the desk but only do two hours of
meaningful work.

3. Why can output-based payment be unfair for creative work?

It's hard to measure creativity or innovation, and not all valuable work is easily counted.

4. How can burnout be prevented in an output-based system?

Manage workloads fairly and regularly check in with employees about their stress levels.

5. How can productivity be improved in a time-based system?

Set clear, specific goals and focus on achieving results, not just time spent working.

6. What can be done to ensure fair evaluation of employees?

Use clear, transparent performance criteria that employees understand and can follow.

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