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Write a report on Cheesy Pizza Company and discuss the reward system, which has become an integral part of organizational behavior.Define concept of reward system in organizations across the globe. 

Objectives of Reward System

Reward system has remained an essential part of organizational behavior for a long time. However, it is not that simple as it has become a debatable topic. It is a potential strategy to some. On the other hand, some believe that it does not add much value to the employee’s performance (Agwu 2013). In recent times, it has largely become a part of the organizational practices (Chen, Williamson and Zhou 2012). This study is also aimed at designing a reward system for Cheesy Pizza Company. The company is intended to enter Singapore and Hong Kong. The company has planned to expand its business by opening 10 outlets each in Singapore and Hong Kong. They have planned the expansion by 2018. The management, therefore, needs a well-designed reward system to help it retain its employees and the managers. Nevertheless, they have viewed reward system as a good resource to control the attrition of staffs in the planned expansion.

There can be several objectives behind setting a reward system. Following are some objectives of setting the reward system for Cheesy Pizza Company:

  • To attract employee’s participation to the fulfillment of operational goals
  • To retain employees to reduce the attrition rates
  • To influence the performance of employees
  • To encourage employees for developing new skills and knowledge
  • To create a positive culture in the workplace

Reward system is designed to make it look attractive to the employees and the managers. This is necessary also because if the reward system is not attractive then it may fall short in influencing the participation of employees and the managers. Following are few reasons, which establish the importance of designing a reward system:

To align it with the operational objectives-

 First and foremost, the designing of reward system is important to make it relevant to the organizational objective. Different organizations have different business objectives. In the same way, those organizations have some different reward system as well. It is necessary to design the reward system to make it feasible with the operational objectives. There are different targets set in different organizations (Agwu 2013). For example, engineers in an IT company have the task to complete the project within the given deadline. The reward system in such organization could be for those who complete projects within the given deadline. Moreover, they should also be rewarded who are taking part in most of the projects. However, staffs working in a food restaurant could be rewarded for meeting the sales targets, surpassing the target limits and presenting an excellent customer service (Wasiu and Adebajo 2014). The two examples that have been cited clearly prove that different organizations need different reward system, which is influenced by the operational objective. The Cheesy Pizza Company needs to align its operational objectives to design the reward system. This will bring relevancy to the reward system. Moreover, employees will feel satisfied and justified both.

To provide a balanced system of reward to deserving-

This is another important reason that encourages a systematic design of the reward system. This can be attained if a reward system is designed with some sets of terms and conditions fulfilling which the employees will be able to get the rewards. Moreover, designing of reward system will help to set the target limits that will vary in respect to different designations. The number of employees sharing the same position will have the same set of target limits (San, Theen and Heng 2012). The Cheesy Pizza Company should categorize the different domains on the basis of their roles and responsibilities. They should have a different set of rewards for chefs and cooks. On the other hand, they should also have different sets of reward system for the waiters.

Reason for Designing the Reward System

This is one of the most important reasons that produce the importance of designing a reward system. The revenue structure can play a very important role in designing the reward system. The organization can only distribute a portion of its profit. It just cannot follow the reward structure of a far bigger company (Adu 2015). Cheesy Pizza Company will be entering the Singapore and Hong Kong. It will take time to storm the market from its product line and the service quality. Moreover, it is not feasible to distribute much while making just a narrow profit. However, some changes can be made with the increment in the profitability venture in both the Singapore and the Hong Kong (Mikuli?, Šimuni? and Nikoli? 2013).  

 This is also very important. The reward system should be designed in a way that it does not favor any biased behavior. Managers may tend to reward those who have better rapport build up with the manager. Such activity will actually affect others who should have got the recognition. Nevertheless, a reward system needs to be designed in a way that it encourages the performance and the commitment only (Ardichvili et al. 2012). The Cheesy Pizza Company should design the reward system in a way that it encourages a valued contribution only.

Different factors are needed to concern while designing the reward system. Such factors can be divided as follows:

Intrinsic & extrinsic rewards-

Intrinsic rewards are those that normally come as an appreciation for achieving the excellence. It can be the different types of appreciating words such as “congratulations”, “well done”, “good job” and various others. These words can be supplied to the deserving that have convincingly achieved the target or even surpassed the target limit. Such rewards can be given in different ways such as through emails or verbally at the workplace. Receiving some words of encouragement from the managers do matter to some (Khan et al. 2013). On the other hand, the extrinsic reward is important to many others. The Cheesy Pizza Company should make this a habit that its managers acknowledge the performance of employees. They should have a responsive character in them and never miss a chance of encouraging the employees.

 An extrinsic reward is generally the financial benefits that come in different ways. This can be in the form of incentives, which is given to achieving the target or even crossing it. Financial benefits may also come in the form of salary increment, which acknowledges the contribution of employees for a longer period of time. The bonus is another form of a financial benefit, which is given on some special occasion to influence the behavior of employees (Cerasoli, Nicklin and Ford 2014). The Cheesy Pizza Company needs to select the most feasible extrinsic reward system to influence its staffs. This will be advisable to select the entire kinds of extrinsic benefits such as the incentives, salary increment, and the bonus. In a food restaurant, staffs are needed to work long hours. The pressure gets increased on some festive seasons. It is indeed necessary for the company that it offers good benefits to its managers and the staffs. Benefits apart from a basic pay may produce a much better impact on the managers and the staffs (Cho and Perry 2012).

Factors to Consider in Designing the Reward System

Total rewards-

Total rewards can be defined as a benefit that has everything in it, which can potentially drive the performance of managers and the staffs. It is a complete package, which the human resource management can use to influence the behavior of managers and the staffs. Following is the list of few of the total rewards that needs to be implemented in the Cheesy Pizza Company:


Compensation pay is paid to employees on achieving an excellence in performance. This can be in the form of variable pay, which is tied with the performance level pay. This can also be termed as performance-based incentives (Krishna et al. 2013). The Cheesy Pizza Company should consider paying performance-based incentives to the quality performer. Such incentives will encourage employees and will motivate them for further works.

Benefits like salary increment, bonus and incentives:-

Salary increment encourages staffs for a longer participation with the employers. The Cheesy Pizza should have an attractive increment structure as this will motivate staffs to stay further with them. Moreover, the company will be able to control the participation of employees to a significant degree (Anik et al. 2013). Bonus may be given to staffs on some occasions. This is another good move to keep employees connected with the organizational objectives (Anik et al. 2013). Incentive can also play a very vital role in inspiring the performance of employees. The Cheesy Pizza Company needs to design an effective incentive structure as this will help the company to retain its staffs and the managers. Moreover, the expansion that they had planned in Singapore and Hong Kong needs a good support of its staffs and the managers. They need to have a very attractive structure, which could help them to gain the competitive advantage (Park and Sturman 2012).

Work-life balance:-

Work-life balance has become a much talked topic amongst the Millennials. It is probably above all the benefits that have so far been discussed in this study. They give high values to work-life balance. They know they will get a job that will satisfy their needs of good basic pay. However, they want that in their type of company. In most cases, Millennials prefer to have work-life balance in their selected organization (Syrek, Apostel and Antoni 2013). The Cheesy Pizza Company should put high focus on bringing work-life balance in its different restaurant outlets across Singapore and the Hong Kong. This is indeed challenging in fast food restaurant; however, the management should try to infuse the maximum possibilities.


Recognition can be generally referred to a process that acknowledges the performance of staffs. This can be done through providing certificates for different achievements. The Cheesy Pizza should design few categories such as the customer service, no absenteeism etc. to acknowledge its staffs. Such rewards do also encourage to some extent (Dobre 2013).

Performance management:-

This is essentially required to keep employees connected to the organizational goals and objectives. Numerous ways can be adopted to ensure the performance. One of such ways is to establish a continuous assessment and measurement of performance. An individual employee should be monitored on a regular basis in terms of performance and discipline. Such strategy will help to find the number of staffs that need special care. The special care in organizational term is the training & the development process, which should be given to employees who are underperforming (Jiang et al. 2012). Cheesy Pizza should have a strategy to monitor its staffs and the managers. This will help them find the underperforming staffs. Moreover, such findings should be escalated to the human resource management. They will then have meeting with the line managers to get an idea of the escalated staff. This will follow another meeting, which the human resource management will have with the identified staff. Moreover, this process will help to understand the exact problem that the identified employee has. Furthermore, the HRM will then send him or her for professional skills development program.

Career development:-

This is an integral part of organizational behavior. This is implemented on employees that need special care. The need is identified through different ways such as though the performance. Employees those who are not performing needs to be send for the development process. This will help the staffs overcome the identified weaknesses (Ohme and Zacher 2015). The Cheesy Pizza Company should also have a development program. This will help them to groom their staffs.

1) Communication:-

The implementation of reward system may be challenging. A cooperative approach from the staffs and the managers is required as it helps to facilitate a smooth introduction of reward system. Communication will involve the top managers, the middle managers and the staffs. Reward system is a core responsibility of the human resource management. The HRM will decide which reward system will be beneficial. However, the implementation will not just happen but it will rather seek an approval from the CEO on the same. Moreover, a valued discussion will take place amongst the board of directors. They will check whether the suggested move is feasible with the organizational resources such as the physical, human and the financial resources (Downs and Adrian 2012).

 The Cheesy Pizza Company should follow the same strategy as stated above. They need to have a strategy-making process before they introduce any reward system. The expansion of business can be efficiently handled if the HRM uses strategic capability to implement the reward system. The first and foremost process will be to seek an approval from the company’s CEO. Once the process gets approved, it needs to be circulated within the line managers. The mode of communication can be either an official mail or a verbal communication through meeting. The managers will then be informed to communicate the change in their respective teams. In this way, the entire staffs will come to know the proposed change (Burgoon, Guerrero and Floyd 2016). Communication will also be needed to ensure that there is no gap between the managers and the employees.

2) Train the line manager:-

Training is also required to be given to line managers. If they lack in sound knowledge they will not be able to deliver good information to the employees. Moreover, the Cheesy Pizza Company needs to put sufficient emphasis on its line managers as well. The expansion is bigger and happening in two markets, which is why it is important that the line managers are capable enough to lead their different teams (Elnaga and Imran 2013). They might face some challenges such as few employees are not competent or they do not have interest in them to work. In such cases, line managers will be the most responsible person to identify what is wrong in the process. They will only escalate whether staffs need to undergo the development process. They will actually take care of bigger responsibilities. The performance of staffs will be dependent on the line managers and their understanding of every single process (Salas et al. 2012).

Total rewards

3) Gather feedback from employees and management:-

Feedback is an essential part of organizational behavior. The employees can provide valuable feedback. The managers can also provide useful feedback. Moreover, it is necessary that both the employees and the management are entirely committed to their roles and responsibilities. Their roles and responsibilities also include the feedback that they need to provide based on their observation of the process. This can help to understand the conflicting thoughts of managers and the staffs (Burke 2017). The Cheesy Pizza Company needs to encourage its management and the staffs to provide their valuable feedback regarding the operation or anything. This will produce a healthy number of issues that staffs face. This will also face a significant number of challenges that the management faces while they implement a process. Moreover, feedback from both the management and the staffs will help to find the number of different issues. The human resource management will then be able to identify the most feasible way out of the conflicts or else the conflicting issues could have badly impacted the business (Burke 2017).  

.4) Obtain approval from CEO & senior management:-

The introduction of a reward system can never take place without an approval from the company’s CEO. This indeed should never happen as a new process requires a thorough study on it and the required resources. Such works are a part of company's CEO only. Any new plan or a process is needed to be introduced to the CEO. The CEO will then discuss the same with the company’s human resource management. Such discussion will help to understand whether the new process will be beneficial for the company. This will also help to analyze whether the new process is feasible with the organizational resources (Carmeli, Tishler and Edmondson 2012).

The Cheesy Pizza Company should follow the same process. The list of reward system is long; however, they may not be able to introduce all at the earliest. It will take some time to introduce the maximum number of reward system in the company. Moreover, the introduction of a reward system should seek an approval from the CEO of Cheesy Pizza Company. The CEO and the human resource management should come up with the best reward system exclusively suitable to its staffs. Moreover, this will prevent it

5) Trade union- informing them:-

This is another very important part of organizational behavior. They are a group of people that speak on behalf of the staffs. They are concerned with the employee’s rights. They actually propose the standard wage structure, which is in line with the market standard. Apart from the standardized wage structure they also seek for other rights as well such as the bonus and the salary increments. They have a very bigger role in reputed organizations. However, they will still influence the Cheesy Pizza Company as they follow common rules & policies set for the entire food industry (Marino 2015).


To conclude, the Cheesy Pizza Company needs to follow a well-structured reward system for its proposed outlets in Singapore and Hong Kong. This is necessary to motivate the employee’s participation. This is also necessary to influence them to deliver their best. Before that, they need to design the reward system according to its feasibility. The feasibility will be checked in relation to various resources such as the physical, human and the financial resources. However, the human resource management of the company needs to follow a systematic process before implementing the reward system. There is a need to get an approval of the company’s CEO. The implementation of a reward system will take place once it is approved from the CEO’s side and acknowledged from the line managers and the HRM. Moreover, the change is needed to be communicated to the employees before the implementation of the process. Such communication can be efficiently established with the help of either a professional e-mail or a verbal communication through meeting with the respective line managers. The line managers will then communicate the proposed change to the staffs. Both the employees and the line managers will be encouraged to help through their valuable feedbacks. This will help the HRM to understand if there is any conflict of thoughts between the managers and the staffs. Moreover, such conflict of thoughts may interrupt a successful implementation of the proposed reward system. The implementation of the reward system will help Cheesy Pizza Company to influence the behavior of staffs and encourage them to perform. This will also help the company to control the unwanted attrition of employees. This will be helpful for the development of underperforming staffs in the company. Moreover, the development of the reward system in Cheesy Pizza will help its management to develop a positive culture in the workplace.



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