Rewards can be defined broadly as the material and psychological profits for performing tasks in the work place.
Types of Rewards
There are different types of rewards for the different types of employees and a rewards that can motivate one levels employees may not be able to motivate the others levels of employees.
The rewards can be used by a Bank to motivate its employees. These ares-
Hourly Wage
Fixed amount according to work hours.
Annual Salary
Contractual amount per year.
Piece Rate
Fixed amount per unit of output.
Sales Commission
Fixed percentage on sales revenue.
Merit Pay
Bonus granted on outstanding performances.
Profit Sharing
Distribution of specified percentage of bottom line profits.
Gain Sharing
Distribution of specified percentage of productivity gains and \ or cost savings.
Pay for Knowledge
Salary or wage rates tied to degrees earned or skills mastered.
Stock Options
Selected employees earn rights to acquire firms stock free or at a discount rate.
Reword for the Employees
A bank can provide a rewords to it employees to motivate them as follows.
In a bank the employees who are involved in Sells and Promotion (Credit card, David Card etc) they can be motivated by sells commission, piece rate etc.
Employees of purchase department can make be motivated by giving them gain sharing rewards.
Second Officers, Third Officers are the very lower part of the management
They have not had to play any strong role in management. So the Owner group may motivate them by giving some rewards like merit pay, pay for knowledge etc.
Assistant Managers, Branch Managers, Divisional Managers, Executives Officers have to play some strong role in management. They may get the facility or reward like merit pay, Pay for knowledge, Profit sharing (limited access).
Some top level employees like Managing Director (MD), Deputy Managing Director, General Manager (GM), Deputy General Manager (DGM), and Assistant Managing Director (AGM) these types of employees can be motivated by the owner through the rewards like merit pay, pay for knowledge, profit sharing, stock options, cafeteria compensations etc.
Cafeteria compensations should be for the senior officer because it is a very expensive proves for the organization and for this reason this should be open for only the top level employees.
Facility or rewards like monthly or annual wage or salary should be open for all according to the amount of their service for the organization.
