Using only 2 "contemporary motivation theories", design an incentive/ rewards system for employees in the retail banking sector. Please see attachment for complete question.
Beyond the hard sell: Redesigning performance-related rewards at Bidgee Bank
The case at hand is a problem that is faced by Alison Lee, a newly installed Human Resource Director of Bidgee Bank.
The main task assigned to Ms. Lee is to design a reward system for 8000 staff and 400 remaining branches in the bank's nationwide retail division.
With an aim for expansion in retail banking, credit cards, personal loans, and housing mortgages, the management launched the Sales Incentive System (SIS) with a hope that workers would be motivated and committed to work towards attainment of organizational goals. Aside from implementing the SIS, other strategies include closure of low profit branches, implementation of e- commerce, and a shift from service to sales culture.
While the service culture is more on meeting the expectations of clients and filling up their needs with the highest quality of service possible, sales culture emphasizes up-selling where clients are offered products and services in addition to what they currently or previously had. Under the sales culture the emphasis is on encouraging new accounts on personal loans, additional card limits, and adviser referrals. This often resulted to customer complaints.
The implementation of the SIS and the change from service to sales culture was implemented amidst minimal changes in work organization, staff selection, training, and performance management. Individualism was enforced wherein pre-existing work teams were dismantled. This indicates that while the desire to expand is great, the management did not exert much effort in preparing the employees.
Answer to Question 1
1. The sales incentive system was implemented without any assessment done on the employees whom the incentive system is addressed. Their acceptance and preparedness to the incentive program was not determined beforehand.
2. Appropriateness of the criteria or bases of giving the reward to the capabilities of the workers was not determined. Inappropriateness of these criteria to workers' capabilities made them frustrated because of the slim chance of attaining it.
3. The SIS was implemented without putting an effective appraisal system in place. Measurement of performance had loopholes resulting to fraudulent acts of many employees, ...
Contemporary motivation theories are examined. An incentives/reward system for employee in the retail banking sectors are determined.