Reward System In Relation

With Performance
Presented By:

Presented To:

Wajid Ali

3335

Nabita Ishtiaq

3353

Rana Tassadaq

3316

Ms. Sana Chatha

Company:

COCA COLA

REWARD MANAGEMENT ???

Concerned with the formulation and implementation of
strategies and policies.
The purposes are to reward people fairly, equitably and
consistently in accordance with their value to the
organization.
To help the organization to achieve its strategic goals.
Deals with the design, implementation and maintenance
of reward systems i.e., reward processes, practices and
procedures.

OBJECTIVES OF REWARD
MANAGEMENT
Encouraging and attracting qualified and competent
employees to retain in the organization.
It is designed and managed for improving productivity.
Controlling labor costs through motivation.
Reward system should comply with pay legislation.
(Bratton & Gold 1999 , p.192)

TYPES OF REWARDS
1) Intrinsic Rewards:
) Internal to individual and normally
involvement in certain activities or tasks.

derive

from

) Includes achievements, feelings of accomplishment,

informal recognition, job satisfaction, personal growth
and status.

CONTD
2) Extrinsic Rewards:
Directly controlled and distributed by the organization.
More tangible than intrinsic.
Rewards it includes formal recognition, incentives
benefits, pay promotion social relationship and work
environment.

ALTERNATIVES TO REWARD
MANAGEMENT
Pay for knowledge system
Group incentive gain sharing plan
Profit sharing
Cost saving
Cafeteria style benefits

CRITERIA OF REWARD
MANAGEMENT
Customer satisfaction
Work quality
Problem solving
Work quantity
Setting and achieving objectives
Improving work processes
Attendances
Acquiring new skills

RELATING REWARDS TO
PERFORMANCE
Unfortunately many formal rewards provided
organizations can not be connected to performance.

by

Rewards including paid vacations, insurance plans, and

paid holidays, are almost always determined by
organizational membership and seniority rather than by
performance.
Other rewards, such as promotion can and should be
related to performance.
The primary organizational variable used to reward
employees and reinforce performance is pay.

CONTD
Relating rewards to performance demands that
performance be accurately measured and this is often
not easily accomplished.
It also requires discipline to actually relate rewards to
performance.
Another reason is that many union contracts require that
certain rewards be based on totally objective variables
such as seniority.
No successful formula for implementing a pay for
performance program has yet been developed.

CONTD
But a number of desirable preconditions have been
identified and generally accepted
Trust in management
Absence of performance constraints
Trained supervisors and managers
Good measurement systems
Ability to pay
Clear distinction among cost of living, seniority, and merit
Well communicated total pay policy
Flexible reward schedule

COCA COLA
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.
An 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.

REWARD MANAGEMENT SYSTEM

IN
COCA COLA
Coca Colas 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 employees performance in a
way to increase productivity and effectiveness.
They are using in directly different motivational aspects like
Maslows 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.

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

All discussed 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.

CRITERIA OF REWARDING
EMPLOYEES
Coke is using different techniques to define their
reward criteria to work according to define standards
of organization.
Special assignments (inter departmental transfer)
Financial aspects
Grade jump and designation change
Training and development
Personal development of an individual
Career grooming

PERFORMANCE STANDARDS
First goals are developed at higher level, then head of
departments make their ones, then unit office.
Next comes locations PGM, then functional heads then
direct reports are being formulated.
Supervisors take part and at the end employees also
formulate their goals.
All these exceptional policies make
International best out of its competitors.
All done at four basic steps, like wise
Goal setting
Monthly review
Mid year review
Final review

Coca

Cola

PAY SYSTEM OF COCA COLA

Grade Range:
M represents management grade

M1 & M2
M3 & M4
M5
M6
M7
M8
M9
M10
M11 & M12

Assistant Officers
Officers
Senior Officers
Executives
Senior Executives
Assistant Managers
Managers
Senior Managers
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.

PERFORMANCE RATINGS . . .
Exceptional performance EP
Contributions significantly exceed the stated objectives in
terms of quality, quantity and timeliness.
Successful performance SP
Contributions meet and sometimes exceed the objectives
which are based on challenging goals.
Developing performance DP
Contributions meet some / most but not all of the
objectives and performance improvement is necessary.
No Performance NP
Contributions frequently do not meet the stated objectives.
Performance requires monitoring and substantial direction
from the manager.

Types of Rewards of Coca

Cola . . .
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 achieve)
Monthly turn hall (extraordinary performance)
Quarterly Basis:
Employee of the Quarter (EOQ, non sales)
Sales Dangle context
Gold Context

RECOMMENDATIONS . . .
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.
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.
For us goals should be specific, measurable, achievable, and
realistic and time bound (SMART), it would definitely increase
overall effectiveness.
We have to recommend Coke to design their system in
specific way to define employees career path, recognition
and future goals; it would definitely positively boost
organizations performance.

Thank
You . . .