7BUS2050 Individual Report on Strategic Reward Assignment Sample
Introduction
This report is focused on the introduction of a new strategy by HipChocolate, which will help them to implement a reward system into their workforce. Hence, the report is going to highlight the company’s background and justify the reason behind adopting a reward strategy. It will also focus on the ideas for the new division and will help to justify the reward system strategy of the company. Furthermore, the report is also going to highlight concepts of the reward principles. Thus, it will also include reward programs and processes, implementation of reward strategy, and measuring the success of the reward strategy.
Company background
The organisation, HipChocolate, is also mentioned as happiness in plants as the company believes in sustainable products which would bring positive changes to mother earth. The company focuses on producing food products that are based on oat, milk, and chocolate and are sustainable towards nature (HipChocolate, 2022). The company is basically a plant-based chocolate brand, which initiates in producing chocolate from the slave-free supply chain system around the globe. The products that are being generated or produced by the company are vegan-friendly. The three major aspects of the company are plant-powered, single origin, and plastic-free organisation. As referred to on the website of HipChocolate (2022), it has been stated that the company is focusing on a mission or a goal to produce the creamiest plant-powered chocolate for the entire world. The company utilises the best chocolate or cocoa from the finest slavery-free chocolate farms, which are situated in South America. The company believes in three major objectives, which were no diary, no slavery, and no plastic.
As mentioned above, it can be seen that the company is a sustainable organisation and believes in creating positive effects towards the environment. Hence, adaptation of the sustainability division rewarding system is a major key to maintaining sustainability within the company’s workforce. It would help the company to categorise specific employees that are working with major sustainable precautions (Pellegrini et al. 2018). Hence, the rewarding system will motivate the employees to become more sustainable. Thus, it would also help the company to increase the performance level of the employees. Whereas, the adaptation of the rewarding system will help HipChocolate to make their employees motivated for performing their role consistently and help them to build a sustainable environment in the workplace. Employee morale will be boosted owing to the reward system. It will increase their confidence in their ability to exceed their individual excellence in order to help the organisation succeed.
The idea for the new division
HipChocolate has been operating for several years, and thus, it requires that the company should understand the current scenario of the marketplace. Consumers along with governments are becoming very keen about sustainability concerns. In this context, the current evaluation will be based on the division of Sustainability, where the prime focus of the team or the employees will be to look out for their organisation in terms of sustainable concerns (Ukko et al. 2022). The environment is suffering due to several reasons and organisations are becoming one of the key reasons for making the environment suffer. With the huge production of plastic, wastage, and too much natural resources consumption is taking away the beauty and efficiencies of the earth. Hence, the sustainability division will allow the organisation to come up with great ideas along with being efficient as well in preserving the environment (Lozano and von Haartman, 2018).
Packaging, shipping, inventory management and even supplies chain management all are aspects, which need to be incorporated so that the corporation can come out to be the saviour of the environment with best practices and approaches. In today’s business environment, customers are the main character, which allows the business to be able to shine in the industry (Hailemariam et al. 2019). Considering this fact, it has been found that most the consumers are looking for those companies who have sustainable practices those are doing something for the environment. Thus, the sustainable division is appropriate in this context, which has the possibility to provide great market presence along with brand reputation as well.
Justification of reward strategy
As already mentioned above, the reason behind the selection of division for the organisation is the most important aspect for its team members or the employee work in collaboration and achieve short-term goals (Obeidat et al. 2018). Every employee who will be in this division needs to understand the responsibility so that they will become more efficient with their work. Therefore, engaging the employee in this division requires a reward system, which will be specially made and constructed for the department. In every organisation, there are rewards systems as per the company objectives and goals. Hence, while completing those goals employees are being rewarded which makes them motivated to come up with their best self (Bussin et al. 2019).
Therefore, this will be the only motive of the division to construct a reward system, which will be entirely based on the objectives of the principle of the department so that the employees will have their goals and that will motivate them throughout their employment (Din et al. 2021). The rewards system will only keep employees motivated to make the division more powerful and effective.
Reward principles
Reward principles are the most important aspects of a reward system as it guides the system to be effective and justified. Every reward system requires a reward principle on the basis of which the rewards are being provided to the employees. HipChocolate has been identified to be offering chocolate which is loved by millions of people in the marketplace (Gallo et al. 2018). Chocolate is something which is consumed by every age group starting from 5 years old children to even 60 years elderly people. This suggests that, with huge consumption, the production will also increase. In this context, one of the principles of this sustainability division will be reduction of single use plastic from the packaging. Along with this, while production it is evident that electricity and energy utilisation will be there. Hence, the employees of this division will take special attention to reducing electricity and energy uses. This can be done by switching off the lights during daytime along with placing a metre outside the production site to calculate and measure the electricity utilisation (Wang et al. 2018).
Apart from this, in the food industry, there are several items, which are wasted knowingly and unknowingly. In this concern, the focus of the sustainability division will be on water and food wastage. Other than this, they will be appreciated by the organisational management if they take initiative in food wastage and try to help the needy people who are in need of food. This can be done while checking the inventory shelves, regarding expiry dates (Goh and Jie, 2019). Furthermore, not only in an organisational context, employees will be rewarded as well if they themselves reduce their own carbon footprint successfully, such as taking local transportation, saving energy while using computers and many more.
Reward programmes and processes
The reward programs that can be suggested for the new sustainability division of the organisation would include incentives as well as bonuses. Furthermore, as an alternative, the employees can also receive coupons and redeemable vouchers. However, the priority would always be on ensuring the employees receive incentives and bonuses as their reward (Alzyoud, 2018).
Incentives would be provided to the employees for achieving a particular goal or objective in terms of achieving sustainability within the organisation. While, on the other hand, bonuses would be given to employees for achieving a group of tasks and milestones that have a combined effect on the company’s sustainability (Antony, 2018).
An incentive strategy along with a bonus strategy has been taken into consideration in order to motivate and encourage the entire team to achieve an overall sustainable working environment for HipChocolate. While incentives could continue to encourage employees to achieve small goals, achieving bonuses would be the greater goal that would keep them motivated to achieve the important milestones that have been determined to achieve the desired rate of sustainability within the organisation (Cote, 2019).
However, there might be instances when the company might not have the financial feasibility to pay financial incentives and bonuses however as an alternative the individuals would be rewarded with redeemable coupons and gift cards of the same value. This would ensure that the employees remain satisfied with the reward program (Alzyoud, 2018).
Implementation of the reward strategy
The implementation strategy of the reward program would start from the very first month of the new division’s operation in the company. In the first month of operation, the sustainability division team hired for the organisation would have the responsibility of identifying the current energy consumption, food and water wastages, and the amount of plastics that are utilised in the production process during the entire month (Niguse and Getachew, 2019).
Incentives in the first month would be provided to employees working in the sustainability division to accurately identify the resource consumption of the organisation in one month. Based on this data objectives for the conjunctive months would be fixed by the board of directors. For instance, the sustainability division team would need to minimise the use of non-renewable energy by 20%, reduce food waste and water consumption by 15%, and minimise the use of plastics by 30%. These would be the primary girls for the sustainability division team in the second month of operation based on which they would be provided with the incentive (Ahmad et al. 2019).
There would also be significant milestones and for achieving these milestones the employees in the sustainability division would be given bonuses that have a significantly higher financial value compared to the incentives. In this regard milestones, that the company can establish would be minimising electricity consumption from non-renewable sources by 70% in 3 months, utilising 70% renewable energy for the entire production and operations of the company in the next 12 months.
These milestones are essential to be achieved by the sustainability division team as this would allow them to achieve the greater goals of the organisation based on the Triple bottom line theory which is to become sustainable in the market and minimise their overall carbon footprint in the industry. Additionally in terms of reward the entire team can also be rewarded with a bonus which ensures that each and everything member receives a particular share of the bonus that has been specifically rewarded to the team apart from individual incentives and bonuses (Pandita and Ray, 2018). This would ensure that the team members working in the sustainability division are working effectively alongside each other as a team to achieve their common goals.
Measuring the success of the reward strategy
Measuring the success of the reward strategy would determine whether the company’s investment in providing rewards and bonuses to the employees is yielding successful results. Based on Hertzberg’s Two-factor theory reward strategies are implemented primarily to encourage and motivate the employees, while, on the other hand, also acting as a tool that can enhance the job satisfaction of employees (Thant and Chang, 2021). Therefore, after 6 months of the implementation of the reward strategy, the company can conduct an internal survey and the feedback received from the employees would help them in understanding how satisfied the employees are with the current reward strategies (Anku et al. 2018). This would also allow the organisation to understand and identify if the reward strategies are not satisfactory enough or they do not address the hard work employees are doing to achieve their given goals and objectives. This also helps the organisation to understand the drawbacks of the reward strategy thereby helping them to improve them and measure how successful these strategies have actually been (Ali and Anwar, 2021).
Conclusion
This report has been focused on providing sufficient information on HipChocolate Company and its new reward strategy based on sustainability divisions of the employees. Hence, it has mentioned the background of the company and justified the reason behind adopting sustainability division into their rewarding system. The report has also showcased ideas for a new division and a justification based on the rewards strategy. As mentioned above, the report has also highlighted reverse programmes and processes and the implementation of the reverse strategy. It has also showcased a measurement based on the success of the reward strategy.
References
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