Identify three nonfinancial segments of total reward and discuss how each could be implemented,
especially across cultures or within a local multicultural labour pool.
What challenges might managers face in implementing such segments?
Reward remains a significant element in the management of employees. It is therefore
essential to determine that a review of the reward objectives should be in line with the objectives
of an organization in the same manner as key businesses such as administration, IT, finance, and
marketing(Bussin, & van Rooy, pp. 27-35.2014). This paper therefore seeks to identify the three
nonfinancial segments of total reward and the manner in which they are implemented
includingthe challenges associated in implementing these segments.
Three Nonfinancial Segments of Total Reward
Rewards according to sources are positive and are only provided based on the success of
an employee as manifested within the levels of performance within or aboard the expectations of
an organizations supervisor. Rewards are basically presented as positive reinforcers to encourage
employees in continuing in their efforts to perform well within a work environment(Bussin, &
Rooy, pp. 27-35.2014).
The employees who receive the rewards get a psychological of economic benefit. The
superiors within the organization giving the rewards therefore increase the performance levels
that are manifested in terms of higher productivity for better profits within the organization. The
nonfinancial segments of total reward are therefore rewards that are non-monetary in nature and
Appraisal; In this, the employees are primarily recognized for their deeds and are encouraged to
achieve their maximum potential through a process of effective learning and development that
translates into an increased performance. This form of reward is simple and costs not a penny
(Rumpel, & Medcof, pp. 27-35. 2006). This can be implemented within an organization when
the management takes time in acknowledging the performances of its workers with the aim of
encouraging them to achieve more.
Promotions; In this instance, employees are promoted to higher positions for their hard work. In
as much as this approach may seem to come with some financial benefit, some employees can be
promoted to some ranks without any financial gain (Rumpel, & Medcof, pp. 27-35. 2006).
However, implementing this reward system may be challenging since many cultures believe that
promotions are given on the basis of the length of stay of stay within an organization and not on
performance. Organizations can therefore implement this by ensuring that promotions are based
Vouchers and Gifts; Besides the appraisals, companies can choose to reward by offering their
employees vouchers and gifts to attend particular events, or for holidays and shopping for their
efforts (Gross, Bundy, & Johnson, pp. 11-17.2011). This can be implemented by initiating an
approach where potential employees are sported and the HRM decides on what is awarded.
Challenges in Implementation
It is critical to denote that there are challenges that come in implementing these reward systems.
These challenges include;
Developing a Credible Assessment Guideline;
It is critical to note that sometimes instilling fairness in these schemes may be a challenge for
organizations (Gross, Bundy, & Johnson, pp. 11-17.2011). This therefore requires that the
processes involved in rewarding employees are credible and transparent.
The manner in which some cultures perceive reward systems may at times conflict. This
therefore makes the understanding of the reward systems within a cultural fit turn out to be a
challenge for organizations.
Defining the Value of the Scheme;
The reward schemes may be considered efficient when they include all the staff. However, such
inclusions may turn out challenging for managers since it becomes difficult to watch the
It is therefore significant to determine that the most adopted reward system is the use of vouchers
and appraisals by companies (Kwon, & Hein, pp. 32-38.2013). The fact that there are no
monetary benefits in these reward systems makes it easier to initiate in an organization.
However, challenges may accrue in the implementation of these systems especially in different
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