“ASSIGNMENT OF REWARD SYSTEM”

Submitted To: MR. Waqas

Batch: MBA1Y02181

Submission Date: 08-05-2019

Submitted By:
Jamil Ahmad
Muhammad Inam
Shahid Mehmood
Sayed Galib Hassan
Ather Zubair

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Table of Contents
Acknowledgements:...................................................................................................3
Reward Management:................................................................................................4
Objectives of Reward Management:..........................................................................4
Types of Rewards:......................................................................................................5
Criteria of reward management:.................................................................................5
Reward Management System in Coca Cola International….....................................6
FINDINGS….............................................................................................................7
Criteria of rewarding employees:...............................................................................7
Performance Standard cycle:......................................................................................8
Pay system of Coca Cola International…..................................................................9
Types of Rewards of Coca Cola International….....................................................10
Employees being nominated by the supervisor should meet the following criteria…
..................................................................................................................................10
Reward System of Sales Officer:.............................................................................11
Reward system of Technician:.................................................................................12
Reward System of Revenue Officer:........................................................................13
Reward system of Marketing Manager:...................................................................13
Reward system of computer operator:.....................................................................14
Recommendations:...................................................................................................15
Conclusion:..............................................................................................................16

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 Acknowledgements:

We would like to express our sincere gratitude to the Project Teacher, Mr Waqas for

his precious and valuable suggestions he helped us throughout our Human Resource subject.

It would not have been possible to complete this Project without his support and feedback.

Our sincere thanks to the Coca Cola officials, for providing us all the necessary information

and helping us in designing the questionnaire for the experimental study.

Our appreciation goes to our family and friends for their continuous support.

Above all special thanks to Almighty God.

Thank you.

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Reward System In Relation To Performance…
(Coca-Cola)

Reward Management:
Reward management is concerned with the formulation and implementation of
strategies and policies the purposes of which are to reward people fairly, equitably and
consistently in accordance with their value to the organization and to help the
organization to achieve its strategic goals.
It deals with the design, implementation and maintenance of reward systems
(reward processes, practices and procedures) which aim to meet the needs of both the
organization and its stakeholders.
Reward is special payments for special work. Reward refers to all forms of
financial returns and tangible services and benefit employees receive as a part of an
employment relationship.
Fairness is important in reward allocation process and to retain good
employees in the organization manager must be concerned about fairness and
appropriately reward those who deserve it
According to our analysis, this author demonstrating reward, in a scenario to
influence employees to work more with greater productivity as well as to reduce cost
with effectiveness. Reward can change the behavior of employees, if employee get the
reward he will satisfy with his job and his behavior is good towards others employees.
He will be loyal to the organization.
If he cannot get the good reward with respect to his job his behavior may be
change towards the employees and not loyal to the organization, so the working
condition of office is change this will effect to other employees well.

Objectives of Reward Management:

There are three main objective of reward management in an organization to
attract and retain competent employees.
 Employee Retention
 Improve productivity
 control labor costs through motivation

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Types of Rewards:
Basically, organizational reward is two types include:
 Intrinsic rewards:
Intrinsic rewards are internal to individual and are normally derive from
involvement in certain activities or task it includes achievements, feelings of
accomplishment, informal recognition, job satisfaction, personal growth and
status.
 Extrinsic rewards:
Extrinsic rewards are directly controlled and distributed by the organization
and are more tangible than intrinsic rewards it includes formal recognition,
incentives benefits, pay promotion social relationship and work environment.

Organizations mostly used two types of rewards like wise Intrinsic (non
monitory) and extrinsic (monitory). Intrinsic reward is depended to the extrinsic one.
Both play a vital role to motivate employees optimistically to increase efficiency and
effectiveness. One important aspect of rewards is that they are used to control
employees’ behavior to the extent to achieve organizations tasks as competently as
they can. On account of rewards employees’ feels job security, and job satisfaction
with them. According to our analysis these are very important considerations to
influence performance of employees as well.

Criteria of reward management:

A criterion is very important to maintain a strong base for any system to run it
without ambiguity and bottlenecks. Criteria for reward management give a fair idea
about organization internal culture, philosophy of organization, defines its mission,
vision, values as well as its overall road to success.
 Customer satisfaction
 Work quality
 Problem solving
 Work quantity
 Setting and achieving objectives
 Improving work processes
 Attendances

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  Acquiring new skills

Reward Management System in Coca Cola International…

INTRODUCTION OF COMPANY:
The Coca-Cola Company is the world's largest beverage company. Along with
Coca-Cola, recognized as the world's most valuable brand, it markets four of the
world's top five soft drink brands. They are facing a lot of problems regarding sales of
product in the market of Pakistan. A improving but still away from final destination,
the company faced a lot of hindrances.
Supply chain is to distribute their products at the right place, right time and
with right quantities to satisfy demands in order to remain highly competitive.
Distribution channel is a root cause of accompany and plays a key role in Sale
Management. Coke and its competitors are trying to remain highly competitive in
every field. Research methodology, case study design, data analysis, Results,
Measurement system Summary and references are in it.

REWARD MANAGEMENT SYSTEM:

Coca Cola’s management is willing to use top managerial expertise because of
its superior brand image in the market. Customers are happy to buy its beverage
products as well as competitors are also conscious to bench mark its managerial
competencies. Coca Cola’s rewarding system to employee is excellent as they are
caring with excellent rewarding parameters just to retain, motivate and influence
employees towards organizational goals with their best potential utilization. They are
rewarding relating with employee’s performance in a way to increase productivity and
effectiveness.
They are using in directly different motivational aspects like Maslow’s
hierarchy of needs, ERG theory and two factor theory of Hurtz Berg. But more
importantly they are not specifically using one of them; they just relate their main
concepts with their reward system to define it properly.

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FINDINGS…

Main parameters used as a base of reward system

 Inflation rate factor

 Market potential (what of individuals worth according to his/her expertise,
job experience etc.)

 Matching with his/her presence career path

 Personal development of an individual

 Sales rewards

Supporting practices

 Safety
 Re-creational activities

 Training and development

 Individual goal setting

So all above parameters are used by Coca Cola to make their reward system
practices well in the market, object is to make their employees feel comfort, satisfied,
motivated towards achievement of organizational tasks, competent to perform to the
extent to attain organizational mission and vision terminologies and compete with
outside rivals successfully. Because the management believes that if employees are
loyal to the organization then they perform better to the way to overcome any
competitive goal with accordance to desired results with remarkable customer
satisfaction.

Criteria of rewarding employees:

They are using different techniques to define their reward criteria to work
according to define standards of organization. System is developed by doing great
market search so as to compete rivals to the way to satisfy their internal employees
more than that to get more profitability and customer loyalty.

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  Grade jump
 Designation change
 Special assignments (inter departmental transfer)
 Financial aspects
 Grade jump and designation change
 Training and development
 Personal development of an individual
 Career grooming
They make close collaborative or communication system with employees so as
to fetch information on the part of their problems to satisfy them all to increases their
efficiency and effectiveness. Because need and wants of employees are changing day
by day to satisfy meaningful needs and wants are very important in the behalf of
organization so as to use best potential of both physical and mental competencies is
very important. That’s why defining criteria of rewarding them have a significant
importance for the mutual benefits of both employees and organization. Rewards have
greater importance and effectiveness in Pakistani cultures, because people have more
demand of them.

Performance Standard cycle:

All done at four basic steps, like wise:

 Goal setting
 Monthly review

 Mid year review

 Final review

First all goal are formulated according to above diagram, from organizational
level to employees, then monthly review has taken place in it only checking of goals
implementations is going on. Monthly review is at inter departmental level, here no
change can be offered as well as no record can be made but at goal setting both
change and record can be happened. Mid year stage comes with re alignment of goals
as well as new policies ways can be designed to achieve organizational goals. At the

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end, final review comes in, in this step check and balance takes place, actual
achievement can be matched with defined are standard one so as to measure out
comes or results.

Here after getting results, if organizations see optimistic results with greater
productivity, then they analyze its true reasons so as to reward those ones who have
done extraordinary yearly base performance. All those will have to be rewarded by
organization with their defined rewards like, salary increment, grade jump and
designation change (promotions).

Pay system of Coca Cola International…

Grade range:

M represents management grade…

M1 & M2 Assistant Officers

M3 & M4 Officers

M5 Senior Officers

M6 Executives

M7 Senior Executives

M8 Assistant Managers

M9 Managers

M10 Senior Managers

M11 & M12 Location Heads & Unit Levels

The purpose of giving this whole pay system is that

Coca Cola is using pay system as a base for their reward system. Because of such
administration, rewarding may differ according to their grade, as from management
grade 9 to onwards, their percentage of benefits rises. There are number of indicators

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which are used to define ones grade as well as its designation in the company like
wise, grid, education (educational institutes, degree worth & specialization),
experience with regard high profile organizations, and industry experience and
individual competencies.

Types of Rewards of Coca Cola International…

Yearly Basis:

 Employee salary increment

 Grade Jump

 Designation change

 Annual incentive Plan (AIP) (for business performance, but fixed)

 Personal Progress report (PPR) (Annual Appraisal)

Monthly Basis:

 Making the move (MTM, sales target achieves)

 Monthly turn hall (extraordinary performance)

Quarterly Basis:

 Employee of the Quarter (EOQ, non sales)

 Sales Dangle context

 Gold Context

Employees being nominated by the supervisor should meet

the following criteria…

 Nominees for the quarter must have a permanent status.

 Employee should be disciplined; has no disciplinary action taken against
him/her in the past year or so.

 Employee should have a good attendance record.

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  Employee should have no marked absent and should be punctual.

 Employee takes responsibility for his/her actions.

 Employee owns the results achieved by him/her.

 Employee completes most of the tasks assigned to him/her (as per their
objective and goals).

All the rewards are combined to form Coca Cola International’s reward management
system to the extent to work well. Human resources department have developed a
great system by distributing rewards among yearly, quarterly, and monthly basis. All
above mentioned rewards really influence employees to satisfy their needs and wants
to larger scale. Coca Cola have developed systematic system with number of steps to
be followed; these limitations make their employees so disciplined and competent
which help them to produce more with contrast to their rivals.

Reward System of Sales Officer:

Coke provides extra incentives to their employees to encourage them and they
are loyal with their work and the organization.

Job Description:

 Keeping in contact with existing customers in person

and by phone

 Making appointments with and meeting new customers

 Agreeing sales, prices, contracts and payments
 Meeting sales targets
 Promoting new products and any special deals
 Advising customers about delivery schedules and after-
sales service
 Recording orders and sending details to the sales office
 Giving feedback on sales trends

Standard for Reward:

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  It is a field work job, the employees on this post are very honest and
hardworking but the pay of this post is very low as compare to their work. We
give extra pay for their extra working hours work.
 This type of reward accords some time off work to employees who accomplish
certain goals. It can be an afternoon of golf, a cruise, or simply an added
vacation day, to do as they please.

 Financial incentives

 Promotions

 Exclusive trips for top performers

Reward system of Technician:

Job Description:

 Responsible for performing highly diversified duties to install

 Troubleshoot

 Repair and maintain production and facility equipment

 According to safety, predictive and productive maintenance systems and

processes to support the achievement of the site's business goals.

Standard for Reward:

 It is important to motivate and encourage employees to perform well on an

everyday basis and not just on a periodic level. For example, small words of
praise, little words of encouragement and constant motivation are highly
important to make your employees feel encouraged for their efforts and to
maintain a positive flow of the workplace environment.
 If the technicians are hardworking and honest for their work and their work
quality is very good then the company give the charge of area vise sites and
increase their pay.

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  If the technician are willing to work on their site for 24 hours then the
company pay three times more for their pay because these sites are very
important and workable every time, if any fault is find then it is solve at their
initial stage, if the problem not solve and the site not repair at time the all site
system is failed.

 The company give training for the passage of time to their employee to build
their leadership skills that he trained the other employees and technicians that
are work under their responsibility and they are work for the other sites. The
company can give extra reward and incentives to give training to the new
employees

Reward System of Revenue Officer:

Job Description

 Revenue management and distribution strategy is to manage the day to day

yield operations.
 Daily pick-up analysis,

 strategy adjustments and reporting.

 Perform competitive benchmark studies and follow market trends.

To achieve these goals, a revenue officer has to perform the following tasks:

 Market analysis and segmentation

 Competitor analysis

 Customer behavior analysis

 Historical and current data analysis

 Yield management

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  Revenue performance forecasting

 Daily and monthly reporting

Standard for Reward:

If the revenue officer collect more than 80% of the total billing amount then the
company give 25% extra pay of the revenue officer. And in other benefits the
company give extra fuel, travel allowance, washing allowance, medical allowance etc

Reward system of Marketing Manager:

Job Description:

 Managing all marketing for the company and activities within the marketing
department.
 Developing the marketing strategy for the company in line with company
objectives.

 Coordinating marketing campaigns with sales activities.

 Manage and improve lead generation campaigns, measuring results.

Standards for Reward

The main target of marketing manager is to sale 100000 packs per month. If the
marketing manager achieve their target then the company give extra incentives of
marketing manager and their team like

 Gift coupons;
 Gift cards;

 Cash rewards;

 A short vacation opportunity;

 Insurance-related benefits;

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  A pen/gadget;

 A free lunch/dinner with family/friends;

 Free pick up and drop off facility for a month;

 Redeemable gold points;

 A hotel stays.

Reward system of computer operator:

Job Description:

 Determines sequence of operations by studying production schedule.

 Prepares equipment for operations by accessing software in computer

 loading paper into printers and plotters

 preparing for output. Starts operations by entering commands.

Standard for Reward:

 The computer operates enter 5000 billing record of recent month in their Intra
Revenue software, if the computer operator enters more than 5000 bills in
their software then the company give 2 rupees extra per bill record entry in
their software.
 And in the month end who enters more record the company give promotion
and give extra incentives to the employee and give good grads that are helpful
to promote in the next level.

 The performance judge of the employee that how much he enter the bills in the
company intra revenue software.

 And how much the record and data is correct and accurate.

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Recommendations:

In start of our recommendation, we would like to add that nomination of EOQ criteria
more benefits to sales employees, so it should be highly recommended to have it for
all so as to make system fair. We recommended to Coca Cola management to utilize
this system to all employees so as to increase effectiveness and productivity. On more
important recommendation should be to design both financial and non financial
rewards in a way to give a fair importance of both for top and lower levels.

Reward management of Coca Cola should be highly functional to make employees

committed to organizational goals, values and standards, also it should push
employees in a way to boost their competencies and work understanding.

There should be criteria for employee to consider their opinions at management level
respectfully. It should need to reduce gap between management and employees so as
to increase overall results

According to our study, they have declared 3% for rewards with respect to whole
revenue, but it is less because system is not working for all departments equally. We
are on the view to increase this budget to minimum 5% so as to treat all employees
equally. Employees should be involved in decision making to increase quality and
productivity.

We are keen to make system significant for the sake to reduce the dissatisfaction of
the employees on promotion criterion, reduce the dissatisfaction of the employees on
appraisal system, reduce the dissatisfaction of the employees on salary, bonus and
other fringe benefits, and improve the work performance, improve the productivity,
reduce the level of occupational stress that arises from feeling of inequality on reward,
and reduce the perceptional gap on reward management system and develop a culture
of high performance.

There should be proper check and balance system between goals and performance
have to be introduced, currently yearly bases performance evaluation has been going
on, for high motivational level, high quality it demands quarterly bases. There should
be a system of consultation between employees and management about employees’
career path, it is easier for management to understand and analyze what employees

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actually want and allocate them reward properly. We would like to recommend Coke
to introduce alternative of reward management like wise profit sharing, pay for
knowledge program and goal sharing so as to increase their productivity.

Conclusion:

In this assignment, we came to analyze how to relate literature implications to

expediency, this comparison helps us to understand trends of both sides and make us
able to think over them in a way to generate those strategic points which would best
overcome our corresponding company’s reward management limitations. Our analysis
gives a fair picture which guided us towards acknowledged recommendations. We
have experienced to immense analytical skills, to give recommendations to the whole
scenario.

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