COMPENSATION & REWARD SYSTEM

Class activity: Dated: 16.10.2020

1. What are the different practices & best fit options used in
Companies to achieve its organizational Goals/objectives?
Ans:-
The ‘best practice’ highlights the relationship between ‘sets’ of good HR practices and
organisational performance, mostly defined in terms of employee commitment and
satisfaction.

Step 1: Identify your high-level goals and objectives

Your company, business unit, or department likely has a mission that guides you. To further
your work towards your mission, what level of growth do you need to achieve this year? It
could be an increase in revenue, new users, people helped, or some other measure. And to
reach this number, you might need to accelerate brand awareness in the marketplace, hit your
hiring goals, or enter a completely new category.
The key here is to keep narrowing your focus until you zero in on the highest-level goals that
will help you hit your growth target for the year.

Step 2: Track your goals in a visible place:

Once your high-level goals and objectives are locked down at the beginning of the year,
they’re typically shared in a meeting or via email. At first, everyone’s excited about them but
as day-to-day demands take over, they start to fade into the background.

When they’re “out of sight, out of mind,” people forget about them, can’t determine if they’re
hitting goals effectively (or at all), and wonder what impact their work has. But there’s an
easy way to fix this: track your goals in one place where everyone can find and access them.

Step 3: Define clear milestones

Once objectives are tracked in a central place (that everyone can access), it’s time to define
the milestones that will help you achieve them and let you know you’re on track. Think of
this as your action plan with clear measures and a deadline.

Step 4: Connect projects to milestones and goals

Now it’s time to get down to the nitty-gritty of identifying the programs and projects you and
your team will work on to hit your milestones. This step is critical to keeping your employees
engaged in their work. People want to know that what they do matters and the best way to
show them is to connect their work to high-level goals.

Step 5: Share progress updates and celebrate success

As your team completes projects and hits milestones, share these updates where you’re
tracking the goals. Everyone can see progress and celebrate success—which is great for
boosting morale and keeping employees engaged. So when that Valentine’s Day social media
campaign goes viral and helps you hit your web traffic goal for Q1, share the results and give
a shout-out to the team that worked on it.

Step 6: Use previous goals and results to inform your planning

Congratulations! You’ve completed projects, hit milestones, and met goals. Since you have a
record of all this information (because you’ve been tracking it), use the learnings as a guide
to inform your company planning next year. Carry a goal over (is increasing brand awareness
ever really done?) or outline new goals based on business and growth opportunities.

The ‘best fit’ focuses on the fact that close alignment between organisational strategy and
other systems is respected.

1. Aligning rewards with corporate goals. A best-fit rewards offering must flow in an
organic way from a company’s purpose, culture, and strategy. These offerings are not
only aligned to the unique goals and needs of the company, but also support their
achievement.
2. Fine-tuning rewards to employee need and desires. One of the ironies of the best-
practices approach is that your competitors have more of a voice in your company’s
rewards offering than your employees. A best-fit approach avoids this trap by
tailoring and optimising rewards to the specific needs and preferences of your actual
employees.
3.  Identifying and deploying a differentiated rewards brand in the talent
market. When done right, the best-fit approach should result in a unique and
compelling rewards brand. If it doesn’t, it could mean that the company’s purpose,
culture, and strategy aren’t unique – which might not bode well for its future – or it
could be that the organisation is not asking the right questions of its employees in the
right way. For example, it isn’t enough to just ask employees how much they “like” a
certain real or hypothetical offering. Instead, a more detailed line of questioning
involving possible scenarios and trade-offs would reveal more detailed information
about the magnitude of employee preferences, as well as the sensitivity of those
preferences.