To develop a reward and compensation system for Qatar Airways that has a work force
of about 31,000 employees and where more than slightly a half of the employees work directly
for the airline requires a HRM policy that has a great contradiction between the different
category of workers. The theory part of the design must be matched against the reality of
achievement as most reward and compensation systems are mostly developed and are quickly
followed by employee disillusionment as the systems fail to deliver the expected results.
Qatar Airways has been in existence since the year 1993 and it has offices in one hundred
forty countries where its destinations are located all over the world. It means that Qatar Airways
has a multi-cultural work force whose diversity can be exploited for the benefit of the company.
To motivate employees effectively then different categories should have strategic pay system
that rewards hard work and motivates workers to continue working for the company by capturing
the specific needs of each class or category of employees. For example, the compensation
systems for pilots should be different with other employees whose contributions to the company
are much higher and more critical than other categories. However, a research on the best reward
and compensation system that the company needs to apply should be conducted and the views
analyzed in order to develop a comprehensive reward system that is acceptable to all employees.
The company can utilize the use of a question that would suggest several motivational
reward and compensation systems that are also provided with other rival airlines like Air
Emirates and Etihad Airlines.
Qualitative data collection method should be applied in order to get the full information
from the employees (Tashakkori and Teddlie, 2003).
Rewards and Employee Satisfaction
Employee satisfaction is critical to the general employee retention strategies. Employees
derive satisfaction from what is expected and what is actually received. Employees compare
personal input, education, job skills, output, efforts, performance and other mix of general
intrinsic and also extrinsic reward or compensation that they receive. The questionnaire should
categorize different aspect of reward systems that would make it possible for all the employees
to select or recommend their preferred reward system (Guest, 2011).
Employees also compare the rewards systems that are available in other companies in
similar industries. Most employees also compare their input in terms of working hours and the
compensation offered in rival companies. The proposed reward systems should be standard and
realistic in order to avoid damaging the employees’ self-esteem.
Data Evaluation Methods
The information gathered should be evaluated using the data processing soft-wares
available in the market like the SSPS or QRS data processing software (Onwuegbuzie & Teddlie,
2003). Several popular selections should be selected but also the unique employee reward
system preferred by certain employees should be considered and where it is possible to provide
such rewards then the company should not hesitate to make them available to the employees.
Qualitative data collection techniques provide finer details on employee needs that the researcher
should also pay attention to. All the employees should be eligible to participate in the research
exercise (Hair, Wolfinbarger, Money, Samouel & Page, 2015).
Rewards are actually intended to motivate specific behaviors in employees. Rewards and
compensation strategies must be seen and perceived to be timely and tied strictly to effective
employee performance. Several conditions are necessary for overall employee motivation.
All employees must certainly believe that effective individual or team performance
would lead to specific rewards. For instance, achieving particular results would lead to a given
The employees must also feel and believe that the rewards that the company is offering is
attractive and competitive compared to the rest of the companies in the market. It should be
noted that different employees have divergent views on reward system and motivation. Some
employees would prefer promotion as they seek power while others would prefer other fringe
benefits as qualification for pension, assured job security, opportunities for career growth or paid
holidays (Guest, 2011).
The employees must also be made to believe that individual effort would lead to
achievement of the company’s standard performance.
Equity and Participation
The effectiveness of a reward system largely depends on its perception of fairness to all
the employees. The system and design of the reward system must reflect equality to all the
employees without any bias of favoritism to any group of employees (Choudhury & Friedman,
The reward and compensation systems concentrate largely on rewarding employees
financially. However, non-financial awards can also be effective in motivating employees
especially if it supplements the financial rewards. Awards generally satisfy the needs for
employee recognition in a company.
Qatar Airways should set up a reward and compensation system that is unique to the
demands of its own employees while also comparing the existing compensation systems that are
available in the market as compared to its rival companies. The best rewards systems are
developed as per the recommendation of the employees and as approved by the employers.
Choudhury, S. & Friedman, M. (2015). A study of employee satisfaction with HMO services at a
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business research methods. Routledge.
Guest, D.E. (2011) Human Resource Management and Performance: Still Searching for Some
Answers, Human Resource Management journal, Vol 21, No 1, 2011, pgs 3-13.
Mills, G. E. (2011). Action research – A guide for the teacher researcher. Boston, MA:
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Onwuegbuzie, A.J. & Teddlie, C. (2003). A framework for analyzing data in mixed methods
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