Question

Develop a reward system for motivating IPT members to do their jobs more conscientiously and to take on more responsibility.

Answer 1

At first, I will describe the basics terms, followed by the reward system for IPT members.

Integrated Product / Project Team (IPT):- A team composed of representatives from apt functional disciplines who work together to create products, run a project, build programs, resolve issues & dilemmas, & recommend to facilitate decision making. IPTs are used in difficult development projects for review & decision making. The main area of focus of IPT involves all Stakeholders (users, customers, management, developers, contractors) for decision making in a collective group/assembly.

Reward system:- A system to motivate employees to work with diligence & dedication to achieve goals either individual or collective. Reward system includes pay, employee benefits, non-financial rewards such as recognition, training, development & increased job responsibility thus supporting employees in their overall development to achieve goals of both individual & organization.

Types of Reward system:-

a) Intrinsic & extrinsic rewards: The satisfaction from the job is an intrinsic reward. Like an employee feels pride in his work or sense of accomplishment. For example, A police officer feels pride in his work by serving the people by ensuring their safety & security.

Flexible work hours, Job enrichment & Job rotation, can offer intrinsic rewards by providing interesting & challenging jobs & allowing the employee greater freedom.

While Extrinsic rewards are external to the job, includes money, promotions, & fringe benefits.

b) Performance & Membership based rewards: The rewards that the employer offers can be based on either performance criteria or membership criteria. Few employers reward employees based on performance. Performance-based rewards are clarified by the use of commission, incentive, bonuses, etc.

While, membership-based rewards include profit sharing, retention bonus, seniority or time in rank, credentials, etc. Example - A company may offer paid membership in a country club or use of company-owned automobiles by executives for membership or performance.

c) Financial & Non-financial rewards: Salary, wages & bonus all these are financial rewards that are directly offered to an employee in return for his service. Some other indirect ways of rewards may include supportive benefits like paid vacations, paid sick leaves & purchase discounts, etc.

Non-financial rewards are potentially at the disposal of the Employer. They do not increase the employee’s financial position, rather they make the job more attractive.

Reward System – WHY Needed?

Two aspects to rewarding employees are:- They deserve it for a job well-done & It makes them more productive, confident, motivated, among other benefits; in other words, it reinforces what they’re doing & sets a good example for other employees. Because of these two aspects, it is important to create a well-structured reward system. Companies can reward employees by appreciating achievements, compensation, etc.

All the members of an IPT need to stay motivated & remain focused on the project. For that to happen physical & psychological agility of every person is crucial since it affects the entire team as a whole. One week link can affect the entire chain & thus may affect the project either in its planning stage or execution stage. Since the members of IPT are involved in the crucial decision-making process which requires their logical/rational & emotional intelligence thus, it is important for all of them to stay motivated and also support each other in such a process. A team is no team if it can not take care of its members & go on by considering the well-being of each other. The well-being of all ensures the timely completion of the task along with precision. Thus, a reward system for an IPT includes all the ways to ensure the motivation of everyone individually & also, of the team collectively.

Methods of rewarding IPT / Employees:-

1. Recognize Achievements:-

Employee recognition programs like Employee of the Month awards acknowledges that an employee has made an important contribution to the company. Employees feel motivated & new employees feel encouraged to reach higher goals. It boosts the morale of all employees. Awarding plaques, hall of fame in the office or giving framed certifications to the good performers can be the best way to recognize employees. These rewards are as tangible for employees as medals are to a sportsperson.

2. Appreciate Employee Contributions:-

It is more of a personal nature i.e. offered one-on-one. Like to have dinner with senior personnel at a fine restaurant. Offering a tour around the company’s international headquarters, a gift certificate, etc.

3. Increase Employee Compensation

If an employee has done something consistently well for a long enough time for the good of the company & has contributed in a well-behaved manner along with his team then he should be recognized by offering salary hike. Increasing compensation is often accompanied by promotion and an increase in responsibility. Example – Annual bonuses, this makes the employee feel attached to the company since it makes him believe that his contributions & hard work will pay him off in the long run & he can look for a better future in the company.

4. Perks & Incentives:-

Perks improve an employee’s quality/standard of life. Example- An Employee of the Month can also get a designated parking space for that month. Other common perks are like flexible working hours, work from home or a paid day off.

Motivation no matter in any form acts as a push factor if it is from inside of a person & as a pull factor if the person feels focused towards the goal. As the goal attracts the person like a magnet & thus doesn’t let the person rest until the task is accomplished. A reward system plays a crucial/major role in such a push-pull process of motivation & helps in the achievement of the goal.

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