Introduction

The paper analyzes the critical factors in a successful reward environment. For starters, it is crucial to understand what a reward system is. It is a project of motivating employees who attain the required objectives. A reward can be explained as a token of appreciation for a work well done or to encourage improvement.

Reward analysis

(Key factors in a successful reward environment)

A successful reward environment has to consider equitability and contentedness of employees. Motivation is a critical factor in business success. A successful organization is the one that attains profit and wealth maximization objectives for shareholders and investors. Motivation entails employees’ engagement and wellbeing through rewarding to increase their productivity and a feeling of ownership towards an organization. Motivation is the key reason as to why a firm should adopt a reward policy.

There are fundamental factors in a successful reward environment. Management plays a key role in a reward system. A firm needs to inherit good management skills while conducting day to day activities. The recruitment of high profile workers is subjected to proper management. There has to be the employment of excellent managerial skills, and a firm has to ensure that there is a regular training of employees so that they can adjust to the requirement of a firm and enhance accountability (Stephens, 2010).

Organizational culture can also play a significant role in successful reward environment. It consists of the way an organization conducts its business on the basis of how it builds relationship among employees, how the organization relates to its external environment, how the performance is monitored, how to create transparency among others.

Another factor in a successful reward environment is the organization’s external environment. External environment consists of the customers and the general public. An organization has to analyze the attitude of its surroundings for successful reward. The analysis is supposed to help a firm to ascertain the intensity of customer loyalty in reference to the firm’s image externally. Through understanding the external environment an organization should proceed and set goals that employees should achieve, the ones that can successfully attain the target should be rewarded.  A reward can either be in financial form and non-financial which are extrinsic and intrinsic rewards.

The appraisal process is a key factor in successful reward. The process entails examining and assessing an employee’s current and past performances to determine his /her effectiveness.  A reward is not only given to the best-performed, employees, but also, those that have less performed are subjected to training programs.

The relevance and availability of data to Coca-Cola Company

The paper applies factors in a successful reward environment to Coca-Cola Company. Coca-Cola was formed in 1888 in the USA currently; it is the world’s largest non-alcoholic beverage company. It is known for its soft drinks including Coca-Cola, Fanta, Sprite, and others (more than 300 brands). James Robert is the chief executive officer alongside other regional managers who make the company efficiently managed (Hays, 2010). The production process is partially automated with a large number of employees involved. There is a need to ensure that efficient work is done and can be achieved by the motivation of employees through rewarding. The rewards can either be tangible such as bonuses, allowances and pay rise or it can be intangible; personal satisfaction, personal development (training) and sense of accomplishment.

The paper analyzes the reward process of the company. The reward data are readily available on the internet. Externally, the company has donated $70 million to about 250 community groups worldwide (Hays, 2010). The data shows the amount the company generated as a reward offering scholarship to students from marginalized communities. Internally, the company has to begin with categorized job groups according to experience, work done, the level of an employee, level of education and scale of the task. The job groups are used in remuneration of employees. Employees are also given challenging tasks and are rewarded with allowances for extra hours worked (overtime). The reward process of Coca-Cola is relevant because employees are rewarded according to work done (Hays, 2010).

Links between reward and business strategy considering internal and external context and culture

There are links between reward and business strategy in Coca-Cola Company. The paper analyzes the Company’s business strategies and links them with the reward system. Coca-Cola is focused on profit maximization and hence ensures that it comes up with ways to achieve the objective. The company exercises penetration pricing model that accommodates relatively low and affordable prices of the beverages (Hays, 2010). Value creation is another business strategy used by the company. Value creation not only emphasizes customers value creation, but also employee’s value creation in making sure that the company extracts maximum value from the employees.

Identification of attainable goals can link up reward and business strategy. The company has given goals one of them being consumer satisfaction. By knowing the goals, Coca-cola can set a target work rate for employees and reward them when the target is attained and at the same time maximizing profit and satisfying customers due to the production of high-quality products by the motivated employee (Hays, 2010).

Communication is an essential aspect of the success of any business. Communication plays a significant role in linking up reward and business strategies. For instance, in Coca-Cola Company communication process is efficient both internally and externally. Internally, management allows conveying of information from all directions, downward and upward. Employees are informed of where to report a burning issue. Externally, the company has been able to reach customers worldwide through advertisements.

A critique of the Coca-Cola reward system and why it is successful

Coca-Cola offers a financial reward as a reward strategy to the hard working employees. The financial reward includes bonuses, an increase of salaries, plane tickets and scholars for the employees’ children. The reward strategy is not fair to underperforming employees. It is discouraging because the Company is supposed to come up with training programs and relaxation leave off and encourages employees (Thorpe, 2000). Instead of low esteemed employees feeling discriminated and motivated; they feel challenged and encouraged to work hard. However, the reward system is successful because of the environment and nature and of the company; the company has built an excellent reputation and goodwill, the company has a set of clear and attainable objectives, a significant market share and efficient management (Thorpe, 2000).

Key reward principles and how they are applied

There is a need to evaluate important reward principles and to discuss how they are applied in Coca-Cola Company.

Total reward policy

Total reward is a concept where an organization makes an effort of motivating and retaining employees to get maximum result in return. Coca-Cola has a program known as cloud-based technology whereby, employees are given the freedom to make choices of rewards (Thorpe, 2000). The choice of one may differ from another. For instance, some employees may consider trips, holidays, and vacations necessary while others may like allowances and scholarship for their children.

The contribution of total reward in Coca-Cola is fruit bearing. Employees feel motivated, and through that, the company can utilize their labor to the fullest. A motivated employee will produce more than expected results which are the reasons why the company is doing well in the market regarding sales due to the production of high quality (Thorpe, 2000). The organization performance is impacted positively, and that is why Coca-Cola is currently the best performing beverage company worldwide.

Best practice policy

Another reward principle that is evaluated in the paper is best practice in regards to equitable, fair, consistent and transparent. Best practice enhances equitability and fair treatment of employees. The company applies best practice policy through ensuring the undertaken operations are transparent and can be accounted for. Corporate social responsibility is also practiced by the company (Dreher, 2009). It intends to give back to the society which enables positive reputation and branding of the company’s name. Best practice, policy, and transparency compare through fairness and accountability.

Role of line manager

Line managers at Coca-Cola Company play a vital role in reward decision. To begin with, the line manager is responsible for overseeing employees and ensuring that the organizational goals are attained. The manager is a part of decision-makers in the case of determining the employees to be rewarded and how (Dreher, 2009). Also, the manager decides on the intensity of effort by an employee to be rewarded setting up standard and goals. The line managers build trust among employees in that employees feel free to give their grievances to them than to senior managers and human resource (Dreher, 2009).  The manager conducts a performance appraisal and analysis to determine the reward decision.

Through the given set of roles, line manager at Coca-Cola Company can contribute to decision making on a reward. They can determine employees’ performance since they are the only part of management that spends a long time with employees (Armstrong, 2011). The managers can be able to get information from employees about their attitude and conduct. This means that they can determine a perfect reward for any given employee. Line manager conducts a performance appraisal to provide feedback to every employee on their performance (Armstrong, 2011).

The roles mentioned above and contributions have an impact on morale, motivation, the psychological contract, and organization success. To begin with confidence, employees of Coca-Cola will feel appreciated and engaged because of their relationship with the line manager (Kumar, 2011). Motivation increases productivity and encourages employees to give their best efforts.  Psychological contracts are achieved in that when an employee gives a promise he/she ensures that they fulfill it. An organization’s success consists of a satisfied group of employees and satisfied customers (Kumar, 2011). Healthy communication between subordinates and management and courageous leadership by line managers of Coca-Cola reflect the success of the organization.

Recommendations

The Coca-Cola Company should not only reward the well performing and high profiled sub-ordinates but also encourage the less performing ones to build their confidence. Confidence is not an inborn trait, but is gradually implemented through a systematic process of learning. Extra-training services to underperforming employees are more than a reward (Watkins, 2010). The company should categorize reward and also diversify them in that employees should have a variety to choose from. They can either be monetary, non-monetary, performance-based or recognition rewards (Oling, 2011). Coca-Cola should also increase transparency and avoid biasness while rewarding in that any employee should be subjected to a reward for a task well done. Coca-Cola should also concentrate on value addition of their employees. The overall reward system should be well planned, clear and precise in that the implementers can comprehend.

Conclusion

In conclusion, the paper brings about the concept of reward system in Coca-Cola Company to a green light. Key factors of a reward of reward system have been displayed which entails motivation of employees towards attainment of organizational objectives. The paper also demonstrates the role of line managers at Coca-Cola Company in ensuring that the process of reward is successful. The paper has also evaluated total contribution reward and practice reward. Finally, the paper has recommended of the measure Coca-Cola should apply to enhance the effectiveness of the reward system.

 

 

 

 

 

 

 

 

 

 

 

References

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Watkins, R. & Leigh, D. (2010).Handbook of Improving Performance in the Workplace, the Handbook of Selecting and Implementing Performance Interventions.Chichester: Center for Creative Leadership.