My father and I have been running our bicycle rental franchise for several years now. We have decided to create a compensation system for our employees. In developing our compensation system, we plan to use the principle of positive reinforcement as well as the other three consequences i.e. negative reinforcement, punishment and extinction. The first aim of our compensation system is to reward employees who are loyal and hardworking and have been with us since we started the franchise. This is with an effort of retaining them and motivating them to continue with their hard work and loyalty. Therefore, we will mainly focus on utilizing positive reinforcement on these employees. To begin with, we will give these employees recognition and approval. This is because we believe that these are among the most powerful reinforcements for this kind of employees. They were with us when we began the franchise and without them and their hard work, our franchise would not be where it is today. They will enjoy the feeling of being appreciated and significant in the business. We will ensure that we give such employees positive feedback on their performance and hence encourage them to continue with their good behavior. We will also initiate an award for the employee-of-the month for the employees who have shown greatest productivity or have shown the most improvement in the course of every month. This will make them feel appreciated. We will ensure that we post pictures and write-ups of employees who have been productive on the bulletin board as well as a form of motivation. In addition, we will begin utilizing certificates, pins, caps or flowers as rewards for these employees who have helped us achieve the goals of the franchise. For these employees, we will write a letter of special commendation for each of them and put a duplicate of the letter in their respective files. Finally, we will present the employees with letters of appreciation to show them how we really appreciate them for being with us since our franchise began.
My father and I believe that money is powerful incentive. Therefore, we will select the most deserving employees in this category for a raise. Since our franchise is doing well, we can afford this. The employees who have been most productive throughout the time we have been in business will be eligible for the raise. We will ensure that the size of the raise is proportionate to performance since money only motivates when compensation goes hand in hand with performance. Our compensation system will incorporate promotions as well. We will send some of our old, hardworking and loyal employees to head some of our new branches. This will ensure that some of these employees do not feel the need to look for greater challenges and opportunities in other companies. It would be disheartening to lose these employees since they are hard to come by.
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The second aim of the compensation system is provide incentives for productivity across the franchise. In order to achieve this, we will begin by giving our employees their preferred work assignments. Giving people tasks that they enjoy doing can motivate them to perform better in their work. Therefore, it is our belief that if we concentrate on assigning tasks that our employees love doing, we will eventually improve their productivity at work hence the overall productivity of the organization. We will also ensure that we do not condone bad behavior such as laziness and absenteeism among employees. Being too lenient may jeopardize the productivity of our franchise and we do not want to risk that especially now that our franchise is doing well. We will apply punishment when employees display bad behavior in the organization. This implies removing consequences that are positive so as to reduce the possibility of employees repeating a certain undesirable behavior in the future. For instance, employees found breaking the rules of the franchise will be suspended. This will ensure that the employees perform their responsibilities as required of them and work towards achieving the goals of the franchise and hence guarantee its productivity.
The third way is through involving our employees in the decision making process. We will do our best not to exclude them from this process. We will begin by involving them in the current decision of opening the two new branches. We will gather ideas from them as to where we should open these branches and the criterion to use when employing new staff. This will even provide us with the chance of identifying potential management talent which could help grow our franchise in the future and keep hold of talented employees at the same time. Therefore, involving our employees in decision making will go a long way to boost their morale and help increase the productivity of the franchise at the same time.
We also plan to improve the working conditions in our franchise to make the environment more pleasant for our employees. This will be used as reinforcement for higher productivity. We will achieve this by ensuring that all our places of work are inviting by putting pictures on the walls, applying fresh paint ad generally making the work environment pleasant. We will also ensure that employees have adequate room for their work hence enable them to work comfortably. All these measures will hopefully make our employees enjoy their work environment and thus give their best to increase the productivity of the franchise. Lastly, we plan to introduce a team spirit in the organization’s culture. This is in an effort to make all the employees feel like they belong and therefore work together towards achieving the goals of the franchise. This will entail engaging in various activities together such as intra-organization competitions. People working to attain goals together enhance the spirit of team work solely because they must lean upon each other and be prepared to support others. With this compensation system in place, the employees from all departments will be motivated and this will in turn increase their productivity.
