Innovative ChangeManagement (ICM)Preparing Your Organization for theNew Innovative CultureH. James Harrington

1. REWARDS
AND
RECOGNITION
Innovative Change
Management (ICM)
Preparing Your Organization for the
New Innovative Culture
H. James Harrington
Dr. NAJM A NAJM
Done by : Safaa Taamsah

2. Rewards and recognition
 What do we mean by rewards-recognition-stimulation?
 Why do people need recognition ?
 Why reward people ?
 Why organization include both individual and group rewards ?
 What is the reward process consideration ?
 What is “Reward task team (RTT)” job in the organization ?

3. Reward process
Reward is defined as something given or offered for a special
service or to compensate for effort expended
Rewards can be subdivided into the following categories:
– • Compensation—to financially reimburse for service(s)
provided.
– • Award—to bestow a gift for performance or quality.
– • Recognition—to show appreciation for behaving in a
desired way.

4. Reward process
“Ingredients of an Organization’s Reward Process”:
1. To provide recognition to employees who make unusual
contributions to the organization to stimulate additional effort for
further improvement.
2. To show the organization’s appreciation for superior performance.
3. To ensure maximum benefits from the reward process by an
effective communication system that highlights the individuals
who were recognized.
4. To provide many ways to recognize employees for their efforts and
stimulate management creativity in the reward process.

5. “Ingredients of an Organization’s Reward Process”:
5. To ensure that management understands that variation
enhances the impact of the reward process.
6. To improve morale through the proper use of rewards.
7. To reinforce behavioral patterns that management would
like to see continued.
8. To ensure that the employees recognized are perceived as
earning the recognition by their fellow employees.

6. Why does recognition matter?
Often, management thinks about rewards and recognition as two separate
activities In truth, recognition is just one element of a total reward structure
that is needed to reinforce everyone’s desired behavioral patterns.
George Blomgren, president of Organizational Psychologists, puts it this way, “
Recognition lets people see themselves in a winning identity role,
There’s a universal need for recognition and most people are starved
for it.”

7. WHY REWARD PEOPLE?
“The most basic behavior is to perform in ways for which we are
rewarded, all through our lives, we have been rewarded for
acting out a desired behavior.
Rewarding people to reinforce desired behavior and encourage
people to behave in a desired manner.

8. Maslow's Hierarchy of Needs
Psychologist Abraham Maslow first
developed his famous
theory of individual
Development and
motivation
in the
1940’s

9. Factors affect the degree to which the
desired behavior is reinforced
 Type of reward.
 Elapsed time between meets or exceeds the performance
standard.
 The extent to which the behavior meets or exceeds the
performance standard.

10. Stimulation
“Stimulation is the encouragement of development or
the cause of activity generally”.
Types of stimulation :
– Direct stimulation: “This normally takes the form of financial
compensation or activities that are related to financial
compensation like salary increases, paid-for trips, paid-for
education and/or technical conferences, etc.”
– Indirect stimulation: “This act normally takes the form of
nonfinancial recognition. It benefits the organization by instilling
pride and degree of satisfaction in the individual. Typical
examples are increasing your office size, giving the new office by a
window, trophies or plaques, a new computer, etc.”

11. NEGATIVE STIMULATION
There are two other ways to encourage people to behave in a desired manner
1)Negative stimulation :
It takes the form of physical and mental pain within the individuals(s) who does not perform
in the desired manner.
Negative simulation is sometimes confused with punishment, but in the workplace, it is more
effective tool for motivating employee behavior. It encourages employees to perform better so
they can have an unpleasant condition removed from their work environment.
For example : A manager applies negative mental stimulation to an individual when the
manager explains why the person is not performing at an acceptable level or a situation where
employees who make mistakes are reprimanded in front of their peers or even spoken to
harshly in private.

12. Humanistic stimulation
(recognition)
2) Humanistic stimulation (recognition):
In sociology is public acknowledgement of
person's status or merits (achievements, virtues, service,
etc.)
Although recognition is an intangible reward, its positive
impact on behavior is usually very effective and should never
be overlooked, Studies have shown that people classify
recognition as one of the things they value most (e.g. Recognition
letters).

13. MOTIVATING FACTORS
One of the biggest mistakes management makes is to use
the same motivating factors for all employees. People are
moved by different things because we all want different
things. The reward process needs to be designed to meet the
following basic classifications of needs:
• Money
• Status (ego)
• Security
• Respect

14. Reward process upgrading
What is the reasons that we that we need to take a fresh look at our reward processes to
upgrade them ??
I. In today’s environment, the organization needs to encourage teams of people to work
together to provide the most efficient, effective, and adaptable organization.
II. Not to develop an organization of prima donnas who are only interested in doing things that
make them look good.
III. The complexity of today’s environment and the sophistication of today’s employees.
IV. The things that are valued by one individual may have no impact on another.
V. The influx of women and various minority groups has had a major impact on the way the
reward process needs to be structured.
VI. In today’s environment, men’s attitudes have changed. The male population is aging, and
men are often not the sole breadwinner for the family, causing them to be less financially
driven.
VII. To meet the needs of today’s organizations and their aggressive goals.

15. KEY REWARD RULES
The reward process needs to be designed, taking into
consideration the following points:
1. • Organizational culture
2. • Desired behavioral patterns
3. • Employee priorities
4. • Behavior/reward timing relationships
5. • Ease of use

16. TYPES OF REWARDS
To help structure a reward process, let’s divide the rewards into
the following categories:
1. Financial compensation: Salary, Commissions, Piecework,
Organizational bonuses, Team bonuses, Gainsharing, Goal sharing ,
Stock options, Stock purchase plans and Benefit programs.
2. Monetary awards : Suggestion awards, Patent awards, Contribution
awards, Best-in-category awards (e.g., best salesperson, employee of the
year, etc.) and Special awards (e.g., president’s award)

17. TYPES OF REWARDS
3. Group/team rewards
4. Public personal recognition
5. Private personal recognition
6. Peer rewards
7. Customer rewards
8. Organizational awards

18. IMPLEMENTATION OF THE
REWARD PROCESS
To develop an effective reward process, many factors have to be taken into
consideration. The following guidelines should be considered when developing
the reward process for your organization :
i. Reward fund
ii. Present reward process
iii. Present reward process analysis
iv. Desired behaviors
v. Desired behavior analysis
vi. Reward usage guide
vii. Management training

19. DON’T TURN THE
ORGANIZATION UPSIDE DOWN
The participative environment has changed the
way many organizations look on the organization
chart. In the old-style organization chart, top
management was at the top of the pyramid,
indicating that everyone below them provided
services to top management.
The popular notion is that with participative
management, the pyramid has been turned upside
down, with everyone servicing the employee who,
in turn, services the customer. But what could be
more unstable than a pyramid resting on its
pinnacle?

20. DON’T TURN THE
ORGANIZATION UPSIDE DOWN
We like to think of the organizational structure
more as a square
(see Figure 7.2). This way of looking
at the organizational structure
indicates that all activities are
important, that five-way
communication exists, and that
everyone in the organization has
an obligation to make the best use of
the organization’s resources in their efforts to
serve their customers.

21. Reward media
To be the most effective, the reward process should combine
different reward media, thereby taking advantage of the positive
impacts that each have and offsetting their disadvantages.
The following media are used individually or in combination to
produce desired behavior:
1. Money
2. Merchandise
3. Plaques/trophies
4. Published communications
5. Verbal communication
6. Special privileges

22. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Financial (Money) Rewards
• Its value is understood.
• It is easy to handle.
• The rewardee can select the way it is used.
Disadvantages of Financial (Money) Rewards
• Once it is spent, it is gone.
• If used too often, it can be perceived as part of the employee’s
basic compensation.
• It is hard to present in a real showmanship manner.
• Often, it is not shared with the family

23. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Merchandise Rewards
• They can appeal to the whole family.
• They have a trophy value.
• They can be used as a progressive reward. (For example, the
employee is given points that can be redeemed or accumulated
for a higher level merchandise reward.)
• They cannot be confused with basic compensation.
Disadvantages of Merchandise Rewards
• More administrative time is required.
• A choice of merchandise rewards must be kept in stock.
• There may be other things the rewardee would prefer.

24. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Plaques/Trophy Rewards
• Directly tied in to the desired behavior
• Lasts a long time and is never used up
• Customized to the employee (name is often engraved on
them)
Disadvantages of Plaques/Trophy Rewards
• May not be valued by the recipient
• Usually not useful
• Often not valued by the family

25. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Published Communications
• Can be very specific
• Receive wide distribution
• Inexpensive way of rewarding an individual
• Document is long lasting
Disadvantages of Published Communications
• No tangible value
• Can reduce cooperation and cause envy
• Can be blown out of proportion by the individual in
comparison to total contributions over a longer period of time

26. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Verbal Communication
• Very personal
• Can be given when the desired behavior occurs
• Least expensive
Disadvantages of Verbal Communication
• Not tangible
• Has no visual reinforcement
• Can be misunderstood

27. ADVANTAGES AND DISADVANTAGES
OF REWARD MEDIA
Advantages of Special Privileges
(For example, attend conference, take a business trip, additional vacation
days, new equipment, etc.)
• Recipient can be involved in the selection
• Can meet unique employee needs
• Highly valued by employees
• Can be used to support organizational objectives
Disadvantages of Special Privileges
• Can cause envy
• Can impact the organization’s operation when the individual is not
available
• Can be expensive