Identify three nonfinancial segments of total reward and discuss how each could be implemented, especially across cultures or within a local multicultural labour pool. What challenges might managers face in implementing such segments?
Nonfinancial Rewards: Types and Challenges
Rewards are positive in nature - they are provided as recognition of an employee's success as manifested by a level of performance that is either within or more than the expectations of the superior or an owner of business. It is provided as a positive reinforcement or an encouragement for the continuation of behaviour.
Rewards are given for the benefit of either the person who is given the reward and the person or an organization that is giving the reward. For the person or employee who is being rewarded, the rewards provide economic and psychological benefits. For the superior or the organization giving the reward, it would mean increased level of performance as manifested by higher production, higher volume of sales, or better profits.
Nonfinancial segments of total reward
Nonfinancial rewards are non-monetary in nature. Directly, they would not improve the situation of the employee economically because there is no added purchasing power provided. However, although they ...
This solution discusses some challenges that managers might face in implementing nonfinancial segments.