Literature Review: Business Management
As the last writer has not been able to give his order, so I uploaded the last order profile, so you can better understand the purpose of my project.
1. Briefly describe the Sponsor Organization/unit (s) of the Sponsor Organization relevant to the Project.
HEA GARDEN HK Restaurant is a Hong Kong-style tea restaurant located in Foshan, China. The restaurant is located in the most popular business district in Foshan and has 22 employees (20 full-time and 2 part-time). Customer loyalty is very high, a large part of the customers are regular customers.
2. Briefly explain the nature and the scope of the project problem(s) / issue(s).
Through a meeting with the boss, we got a general idea of the whole restaurant. We have learned that one of the main problems of the restaurant at present is the internal management of staff. Due to the large number of staff and scattered job assignments, the company has not established a standard management process and system, which leads to the low efficiency of staff management. In addition, it also leads to high management cost, accounting for nearly half of the investment of the whole company. Therefore, we hope to help the boss to improve the efficiency of internal personnel management and reduce the input of personnel management cost.
Our intended topic is human resources recruitment/development/retention. The background information of the restaurant is in a ONE-page PROJECT DESCRIPTION. This document(MScBM_Capstone Project) is what the whole project requires us to do. Now I need you to help me finish page 10 --- 5. Preparing the Project Proposal.
One of the requirement is Relevant academic theories and theoretical models to be included in the Final Written Report.( To find the academic theories and theoretical models for our project)
Above is the content of the previous order！！
I will upload a ONE-page PROJECT DESCRIPTION about our project to give you a better idea of the full information. However, some of the content is not suitable for our current requirements (that is, what was completed in the last order). For example, the academic theories and theoretical models for our project, now our professor asked us to use the hybrid reward to complete our project, then I will also upload a pdf file about this reward (sent by the professor) The problem with the whole restaurant is that the owner has a big management problem, but we can't ask the owner to correct it. So we can only build some rewards to motivate employees and build a certain corporate culture. The restaurant is divided into Chinese and Western food departments, which can be considered as two different teams and have different leaders. After communicating with the departing employees, most of them thought that the management was chaotic and the employees were not united as a team, and the boss promised employee benefits and bonuses did not appear. The owner responded that the employees did not meet his requirements, but there was no detailed reward requirement for the whole restaurant. Basically, this is the information I know, you can contact me if you have any questions or need me to find out.
Thanks
There is also a pdf called student manual which is our full requirements, from page 14 to 17 are the essay requirements. What I need you to help me finish is p.16 point 0 of Literature review 1. Relevant theoretical models 2.Relevant theoretical theories.
And using the theory of Hybrid Reward Structures.
Thanks
Literature Review
Name
Institutional Affiliation
Literature Review
Management must motivate their workforce to promote higher performance in the organization. It becomes even more challenging when the organization depends on highly interdependent teams to deliver its products and services. These teams are composed of individuals with diverse expertise and varying commitment levels. So, developing an effective reward system is necessary if the management wants to achieve the best employee outcomes that will help the organization achieve its set goals and objectives. The management needs to design and implement a reward structure that is fair and impartial and will bring real benefits to the company. Otherwise, the company risks receiving multiple disputes about bias or unequal payment from its workforce. Therefore, employers must incorporate a fair reward system into the organization that ensures the workers feel appreciated or recognized for their efforts (van Eerde, 2015). This goes a long way in retaining and attracting new talent into the organization as employees feel motivated to perform at a higher level. Research shows that companies with a strong reward system achieve better financial results than those with weaker reward systems, highlighting the need for a well-crafted reward system. A good reward structure will first consider the organization's goals and objectives. Second, it will identify employee needs and desires. Third, the reward system will look at the company's financial position to determine an affordable structure. Lastly, the management will identify the necessary tools to implement the reward structure. A reward structure strongly relies on the level of team task interdependence in an organization. This means the type of reward system to implement will depend on the degree of collective effort and skill the company requires to achieve its goals. One type of reward approach may be beneficial for motivating teams while another for individuals. That is why a hybrid reward structure can be suitable since it combines the aspects of both individual and shared reward systems (van Eerde, 2015). The next section examines the hybrid reward structure, which can be useful in solving HuanYuan Tea Restaurant reward management challenges. The organization has a diverse workforce that relies more on collective effort than individual contributions for effective service delivery. This structure can be useful in motivating and boosting the performance levels of the highly interdependent teams within the organization. The hybrid reward structure will then be compared with other systems like individual or shared reward structures. The effects and limitations of the system will also be considered to determine how it can be implemented in Huan Yuan Tea Restaurant to ensure a well-motivated workforce.
Hybrid Reward Structure
Organizations with high levels of task interdependence can adopt a hybrid reward system that combines both individual and team-level incentives to promote excellence. In this reward structure, the management focuses on employee performance at the two levels and moves away from the traditional structures that mainly focus on one level. Also, the management can monitor individual performance within a group, ensuring members are rewarded according to their efforts. This structure enables the management to ensure every team member is held accountable for their performances, enhancing collective action in the organization (Pearsall, Christian, & Ellis, 2010). When these individual efforts are intensified in an interdependent team, the productivity levels of a team increase, which improves the overall team performance. The management must identify the teams present within their firms, such as parallel, project, work, or partnership teams, to implement a hybrid reward structure. This way, they can identify the most appropriate payment option for this individual and team-based reward structure. In a restaurant business like HuanYuan, parallel teams and work teams are most applicable. Parallel teams are interdepartmental, and members from different units work together to solve specific issues in the organizational process. In contrast, work teams involve ordinary day jobs where employees have shared responsibilities. For these types of teams, the organization can choose to use recognition awards that could be cash or non-cash. These reward systems enable team members to realize the value of better performances because they lead to greater financial benefits for the company, which means increased pay for employees (Murphy, 2015). This situation drives the productivity levels and helps members to achieve a higher performance level. Another reward strategy in a hybrid structure is the gainsharing or profit-sharing formula. In this, the performance of the workforce is evaluated using specific criteria, such as a baseline performance index, based on specific metrics. When the organization performs well, the financial rewards are shared amongst the individuals and teams with better performance levels. This action encourages underperforming individuals or groups to improve and enjoy the financial rewards. The strategy is most effective in smaller companies where employees can directly see the impact of their efforts. It is also vital that the reward is immediate for the employee to quickly associate their efforts with the reward (Murphy, 2015). The management of HuanYuan tea Restaurant may find this useful since they have a leaner workforce of twenty-two employees, making this gainsharing strategy practical for meeting their performance targets.
Two models can be used to implement a hybrid reward system. The first is based on the group that first attains a higher performance level for the individual pay rate to increase. So, an individual will be inclined to motivate other members to improve their performances to gain higher pay. The second system is based on every team member who first attains the target performance level before increasing the pay rate. In this system, high performers have the incentive to push poor performers to enable the team to achieve the target performance. These pay-for-performance plans allow the management to relate pay for individual performance to the organization's objectives. If employees in a particular team are underperforming, this structure can uplift their level (Lawler, Benson, & McDermott, 2012). The plans usually have a base pay rate and a variable component that allows team members to enjoy rewards when they reach the target. For an efficient reward structure, the management must develop specific, quantifiable metrics, both financial and non-financial, to track individual and team performance. For example, if a particular group or individual achieves higher customer satisfaction ratings, then they can receive higher pay for their efforts.
Further, management should seek the input of employees when designing them to ensure they are clearly understood and reasonable to the workforce. The hybrid reward structure encourages everyone to leverage their skills and embrace teamwork to meet performance targets. In this way, the structure can provide an incentive for every employee to realize their potential and perform to the best of their ability (Lawler, Benson, & McDermott, 2012). It promotes work excellence at both individual and team levels. Managerial interventions towards reward structures are based on two elements. Discretionary stimuli are focused on the personal level, and ambient stimuli that are team-oriented and focused on all members. Discretionary interventions direct attention to the individual achievement of goals, while ambient stimuli interventions aim to enhance collective action to achieve team goals (Pearsall, Christian, & Ellis, 2010). So, the hybrid reward structure merges these two elements leading to greater individual attention and effort while increasing mutual interaction to achieve shared objectives. Due to this, the hybrid reward structure can offer several benefits to an organization. First, the combination of discretionary and ambient stimuli ensures increased team monitoring and sustained coordination efforts. Every member will strive to ensure their colleague works to the desired level. Since there is a shared performance target, members will be given greater input to realize the incentives. Second, the structure leads to extensive information sharing or allocation. Individuals will be more willing to share their skills and knowledge to improve their colleagues' performances and enjoy the rewards. They can share their experience and expertise, which will help accomplish complex tasks within the organization (Pearsall, Christian, & Ellis, 2010). This cooperative spirit increases information allocation between individuals, leading to more resources for members to accomplish various tasks and higher performance levels.
The Social Loafing Problem
A common problem in the hybrid reward structure is the social loafing phenomenon or "free riding." This happens when members put less effort into their roles compared to when working alone. Individuals may not fulfill their potential when working collectively, which leads to a drop in team productivity. They may feel their output is not significant in the outcome, so the members fail to perform at maximum capacity causing the team not to realize the expected performance levels. Social loafing makes individuals feel less motivated as they feel their efforts are not directly rewarded (Pearsall, Christian, & Ellis, 2010). Below are some of the factors which may cause social loafing.
First, the level of expectations placed on co-workers may reduce their output when they have high expectations of their co-workers. They may leave much of the work to high-achievers within the group, affecting overall team performance. Another cause is a reduction in evaluation potential where individuals exert less effort since they can "hide in the crowd." This means they feel less accountable when working in groups because their performance levels cannot be fully evaluated. A third factor is arousal reduction, where employees have a low drive when working in groups. This situation affects their motivation levels, causing them to exert lesser effort when working collectively (Simms & Nichols, 2014). The following strategies can help minimize social loafing in a hybrid rewards structure. First, the management can increase focus on individual accountability in the teams. This will increase evaluation potential, and everyone's performances will be closely monitored. This action will establish a direct link between effort and reward, ensuring the productivity levels are improved. Second, every team member should be assigned distinct roles, which ensures one is aware of their responsibilities. This reduces free riding as it will be difficult for some to exert less effort to enhance productivity. Another way to reduce social loafing is by increasing group engagement (Simms & Nichols, 2014). This step will boost team loyalty, and as a result, members will be more productive. A hybrid reward structure makes use of several individual and team-based incentives. These forms of compensation can either be monetary or non-monetary, with the ultimate goal being boosting productivity and performance. Monetary options include direct pay, which entails the base wage or salary. Management can offer higher salaries to promote better performances. A second option is indirect pay, which includes amenities, services, or facilities available to employees. This is offered in addition to wages. This includes They are meant to boost employees' comfort in the workplace and include housing allowance, social security, health insurance, paid leave, and retirement programs. A third option is incentive pay, where employees receive additional compensation when they achieve specific performance objectives (Holston & Kleiner, 2017). This tool can motivate employees to raise their productivity levels. Fourth, management can offer bonuses to employees who achieve exceptional performances. It is a one-time payment that includes gifts that demonstrate that the company appreciates good performances from its workforce. F...