Kingfisher School of Business and Finance McArthur Highway, Lucao District, Dagupan City A.Y. 2018-2019 Pride Building at Aramark Submitted by: Block 4 Jerry R. De Guzman John Eduard P. Soriano Maricel C. Cantay Irish Christian Marie G. Daoa Neriza Kay V. Ferrer Jessabelle M. Onza Maria Krisha Auria Q. Tibayan Neah Sophia V. Visperas Submitted to: Ms. Maybelle Ann S. Lopez BME 12 Instructor I. STATEMENT OF THE PROBLEM Do extrinsic rewards really make employees more committed to their works? II. OBJECTIVES The main objective of this study is to identify the significant factors that could affect the employees' work performance and productivity through various motivational means. III. SWOT ANALYSIS STRENGTHS High employee engagement and job satisfaction Dedicated customer relationship management will be able to achieve a high level of customer satisfaction Pooling higher revenues Investing huge resources in training and development of its employees results in a highly skilled workforce WEAKNESSES OPPORTUNITIES High demands of workers hired Attracting new customers to patronize the company and customers’ loyalty will increase Changing employee behavior may result to the abuse in the company Huge investment in employee training and benefit that may lower the revenue THREATS Moderate employee turnover Imitation of the counterfeit to the employee motivation strategy STRENGTHS High employee engagement and job satisfaction became a strength since the intrinsic rewards for increasing company morale and achieving perfect attendance will lead to high employment. Another is that high customer satisfaction--- with the dedicated customer relationship management, Aramark will be able to achieve a high level of customer satisfaction. Moreover, pooling higher revenues became a strength because the high level customer relationship will result to the attraction of more customers and thus will increase the revenues of Aramark. Lastly, Aramark is investing huge resources in training and development of its employees resulting in a highly skilled workforce. WEAKNESSES Changing employee behavior was considered as weakness since high level of rewards and benefits given to the employees may result to abuse the company. Another weakness is the huge investment in employee training and benefit wherein the cost allocated in the employees’ benefits and rewards may lower the revenue. OPPORTUNITIES More workers will be encouraged to apply in the company due to the high motivation and benefits. Also, good customer relationship attracts more customer to patronize the business. THREATS One of the threats of the business is moderate employee turnover since rewards are based on tangible things. Another threat is the imitation of the counterfeit to the employee motivation. The company’s strategy to motivate their employees is very advantageous that other company may imitate it. IV. ALTERNATIVE COURSES OF ACTION Alternative Course of Action #1: The manager must arrange team building events which can make stronger relationship between the employees and the company, so that the employees will be more committed to their works. Advantages Increase productivity - the collaborative nature of a team building challenge teaches people how to work together more effectively. Improve communication - clear and open communication is key to the success of projects and relationships within a company. Team building exercises can help to foster better communication skills in staff and develop their ability to cooperate well. Keep employees motivated - running a team building activity sends a message to your staff - you care about their success. Events designed to help them grow and develop new skills indicate that a company is committed to its employees. Disadvantages Costly - it is among the biggest drawbacks of corporate team building. Monetary costs vary based on the type of team building program like excursions to large fees for seminars hosted by noted public speakers. Team building can also have unintended consequences that hurt a business's bottom line. For employees who have specific skills that prove valuable for their jobs but don't translate well into a social environment, team building may prove ineffective and actually harm interaction among participants. Alternative Course of Action #2: Fostering the employee commitment and engagement by a hands-on supervision of the manager: know their well-being, influence them to be better, know their problems and give advices, give suggestions on how they can improve their works and praise them if they’ve done a job well done. Advantages Greater employee commitment by involving employees actively in internal suggestions of their ideas and perspective, company leaders affirm the value of their employees. Employees more naturally develop deeper commitments in the organization More and Better Ideas - front-line employees that interact directly with customers or clients often have more insight into customer concerns and feedback. When company leaders create an environment that encourages employees to share ideas and to get involved in decisions, they often get more informed perspectives with regard to what customers want. increased productivity - involving employees in some input actions makes them feel more positive about their employers because they feel their opinions are valued. Disadvantages Manager and employee boundary - there is a risk that the line of distinction between the management level and employee level becomes blurred. complex communication - more lines of communication and the potential for inconsistent decision making are disadvantages with employee involvement systems. When more employees have input and decision-making ability, more communication is necessary to make certain that decisions are consistent across the organization. Alternative Course of Action #3: The manager must focus on how can his employees achieve intrinsic rewards than extrinsic rewards since it is more worth it to receive personal achievements and professional growth than material things such as gifts and money. Also, an intrinsic motivation makes employees to perform tasks well. Advantages The job is intrinsically rewarding, employees will be loyal and dedicated and work hard because they enjoy what they are doing. Employees with high levels of intrinsic motivation can reduce total labor costs. Since managers spend less of their time working to motivate intrinsically motivated employees, each manager has more time to focus on more productive tasks. Employees can be more creative than those who require outside influence to get motivated. Disadvantages Intrinsic rewards are much harder to implement, especially for inherently routine tasks and that often they require management to trust and empower employees. V. ETHICAL CONSIDERATION Incentive program motivates employees to accomplish organizational objectives by rewarding them in ways beyond just salary, but it also introduces a host of ethical issues that businesses must consider. First, the manipulative program. It requires funds or resources, so an obvious ethical concern is whether those resources or funds might better serve employees if the organization chose rewarding staff differently. In other words, the use of company's incentive program might be manipulative rather than mutually beneficial. Second, its negative effects. The potential negative consequences of incentive program which designates a performance threshold. Employees might strive to meet that threshold and be a constant source of stress for employees -- especially if the base take-home pay is low. The lower worker morale might be the outcome that undermines the purpose of the employee incentive program. Since, no company can predict all the outcomes of an incentive program so careful analysis on a periodic basis must be followed. Another ethical problem arises when the employee incentive program benefits are not fairly distributed. For example, some employees’ responsibilities might make it easier for them to earn rewards while other employees never get the chance to gain similar benefits. In that case, the other employees may build resentment and feel envy to their co-employees. For this reason, a business must carefully evaluate its incentive program to ensure all workers have equal access to potential benefits. VI. RECOMMENDATION Intrinsic rewards refer to the professional growth, sense of pleasure and accomplishment. Simply, it refers to personal achievement. Basically, it focuses on how will you finish the task thinking more about personal growth rather than material rewards. To be rewarded extrinsically is beneficial to the employee as it may satisfy them and compensate their work. But it would only be applicable in the short run not in the long run. To maintain the credibility of one’s image to the company you must first seek for the things that would make the company better. To be considered a wellperforming employee, you must build your image to the company. Thus, we choose the alternative number 3 as we see intrinsic reward as the main factor that would help the employee to work for the company with its best.
