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According to nationalency klopedin (2015):
reward is “either money or honor that pays out as a compensation , normally as
a sign of appreciation or achievement ”

 

 

The purpose of
the reward system is to contribute to the increased value of an organization
and to motivate employees and encourage actions that are needed for a company’s
success.

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For the
worker, the reward needs to be better than other options, and for the
organization the employees action must be better than the reward (nelson &
ovle 2013). Since every organization is different the reward system should be
adapted to the specific organization (Wilson,2013).

 

Baron 1983 says that motivation is an important
part of rewards and has an impact of 
behavior to achieve some goals .There are 2 types of rewards: intrinsic
or extrinsic .Extrinsic rewards (tangible rewards) does not include any task
related to the work of employees, and may be according to salary, higher
payments and benefits. Intrinsic rewards (intangible or psychological rewards)
such as motivation, behaviors, and satisfaction.

 

According to Luthans (2000), there are two
basic types of rewards, Monitary and non- Monitary and both can be used to
enhance employees performance behaviors . Financial rewards mean pay for
employee performance such as career advancement , performance bonuses, job
promotions, commissions, tips and gifts etc.. Non financial rewards are non
monetary or morally such as acknowledgement, certificate, and genuine
appreciation.

 

 

The employee could leave the company when he
feels uncomfortable in the work environment , some factors are : low salary
,lack of advancement, de-motivated  (coff
1997), these problems leads to  decrease
in a company’s productivity .The role of management is to keep employees and
offer the needs when they feel uncomfortable or underpaid at the work.

 

 

 

 

 

 

 

 

 

Research questions:

 

1-   What type of reward system they use at Blom
bank?

2-   Do reward systems motivate the employees?

3-   How can Blom bank make their reward system
more sufficient?

 

 

 

 

 

 

 

 

 

      I.           
Company profile:

 

 

BLOM BANK started operating in
1951 in Beirut. Its establishment coincided with a booming period in the
banking sector in Lebanon. By 1953, BLOM BANK started expanding and opened a
branch in Jeddah, KSA. As the Lebanese Civil War broke out, BLOM BANK’s operations
abroad increased to cater for the need of the Lebanese diaspora. Today, BLOM
BANK is present in 12 countries across the world. On the leadership level,
Dr. Naaman Azhari became the General Manager of the Bank in 1962 and Chairman
of the Board and General Manager in 1971. In 2008, Dr. Naaman Azhari was
appointed Chairman of BLOM BANK GROUP while his son, Mr. Saad Azhari, became
Chairman of the Board and General Manager of BLOM BANK5 and also serves as
Vice-President of the Association of Banks in Lebanon.6

It changed its name to BLOM Bank
in 2000.7 It acquired the Lebanese
subsidiary of HSBC Bank Middle East, to be approved by the Banque du Liban.8

As of 2016, it was
“Lebanon’s second-largest bank by market capitalisation.”8

Every BLOM bank employee is rewarded for his
work with fair compensation ,career advancements , lots of benefits and
opportunities for skills and career development. Furthermore, the management
monthly chooses the employee of the month who has proved service excellence in
his department.

In addition , all employees are treated with
respect in a culture built on fairness, ethics and transparency. BLOM bank
prevents any type of discrimination and offers equal opportunities to the
employees without considering their religion, age or disability… For example
,the percentage of employees gender is almost equal with 53% males and 47% of
females .

GENDER

 

 

 

 

   II.           
Problem Identification:

 

In this problem analysis,
several of the problems that arise in the use of reward systems will be
addressed .it is important to keep in mind that reward system are somewhat
subjective and what is conceived as a reward may differ from one person to
another. A person might think that a pat on the back or a little bit of
acknowledgement is sufficient while another person may only want reward in the
form of financial compensation. Another problem is that those who don’t get
reward get indirectly punished these can lead employees to perform worse, and
rewards not linked into an employee’s performance or a rewards not linked to
the job to be performed

 

III.           
Subject-relevance and
Added-value:

 

All BLOM bank employees and are medically
covered via NSSF and AROPE insurace that covers sickness ,maternity and end of
service indemnity Insurance and many more services free of charge.

There are lots of other benefits listed by BLOM
bank website ,and we will cover part of them :

1-   Dental plan : all
employees are eligible to benefit from dental plan that covers dental expenses
of an advance loan with 0 % interest.

2-   Conversion privilege option:  this allow employees to convert their term
insurance policy to a permanent policy after retirement ,and that will allow
them and their spouse (if applicable) insurance for the rest of their lives .This
option is intended to protect the employees from being declined insurance based
on a change in health status.

3-   Profit sharing:
employees can be entitled to profit sharing and marketing bonuses depending on
their participation in marketing activities and the volume(quantity) of sales
achieved. Profits are distributed quarterly (every 3 months).

4-   Salary increase and annual bonus: employees
can benefit from salary increases and bonuses depending on their annual
performance evaluation .

 

 

SOCIAL
ACTIVITIES ENGAGEMENT: being a large company and having over 2,000
employees in Lebanon alone and focusing on the well-being of its employees,
encourages them to participate in a variety of social activities such as: BLOM
Basketball Team (Males-females) , BLOM Football Team,  the bank’s musical talents unite to create
oriental and acoustic melodies. These activities leads to create a better teamwork
spirit at work.

 

 

         SAFETY
AND SECURITY FIRST: Being a big company and having many branches
locally and internationally ,the company should stick to its values about
bringing safety and security to stakeholders, at both external and internal levels,
the management department has developed a 
program which aims to reinforce the fraud policy and the code of
conduct. The main purpose of the program is to ensure that every employee can
be able to report his concerns (violations, fraud, abuse, discrimination,
harassment…) to an independent authority from his supervisor. The main
objectives of the program are: Demonstrate management’s non-tolerance
attitude,  identify and resolve issues
early to have the time to fix them 
,provide a risk-free way to voice concerns. Furthermore, it is the
company duty to keep raising its employees awareness on security threats. So as
a big company ,the Bank organizes Information Security Awareness Campaigns to
address and prevent security threats .

-Events:
The HR department  is always actively participating and hosting
many recruitment events, in coordination with BLOM shabeb (such as job fairs,
career fairs, workshops, orientation programs, etc…), the department also
participates in many extracurricular activities such as marathons and sports
championship.

 

 

 

IV.           
Proposed Solution(s):

 

When deciding what forms of
rewards to use, an organization has to consider the company specific situation.
Whether motivation needs to be improved, if there is tough competition for employees,
whether competencies are being retained within the company and the form of
ownership are questions that will have to be answered prior to the design
(Arvidsson 2008).

 

  MEASUREMENTS In the creation of reward
systems a fundamental challenge is to determine what to base rewards on and how
to measure it. Simply stated If you want corn, plant corn. (Knight, webpage,
2013-03-30) Different organizations, depending on their specific industry,
strategic focus and characteristics, will need to use different ratios and
metrics. Every organization must work actively with trying to identify the
specific metrics and ratios that reflect the factors of vital importance for
their organization’s success, commonly referred to as KPIs. If an organization
whose organizational culture encourages results, metrics and ratios will play a
vital role in terms of basis for rewards. The ratios should, according to
Catasús et al. (2008), be a tool in order to control, learn, mobilize or reward
an organization, team or individual. Further, it is important that the ratios
used are limited in numbers, easily understandable and possible to measure
(Catasús et al. 2008).

 

 

 we think that the bank has a better
opportunity to make their reward system more effective by investigate more in
which individual motivates by which factor because rewards can differ from one
person to another, surveys and interviews can be a solution. If most of the
employees selected non-financial reward then it is an advantage to use because
non-financial rewards are more profitable for the bank.

 

 

 

 

 

 

 

 

  V.           
Conclusion, Summary, and
Recommendations:

 

In order to ensure
effectiveness of an organization it is required that workers are motivated and
this can be facilitated by the help of reward system. Rewards can help
individuals to perform better and it also promotes motivation and satisfaction.
It may also be a good way to retain important workers in the organization and
the reward can also get the employee to feel important and needed.

If good performances in the
organization is rewarded it is will most likely happen again(Nilsson&
ovle2013).

 

Companies that choose to
reward employees perform better than companies that do not use any reward
system.

 

Here are a few things to keep
in mind as you design your reward system:

1-  
Get employees involved with designing your reward system

2-  
Tie rewards to company goals

3-  
Be specific and consistent

4-  
Reward behaviors

5-  
Reward teams

 

 

According to Rahman&
hoque(2014)there are five job dimensions that are very important for an employee
to feel motivated and satisfied in their work place. These are the work itself,
pay, promotion, opportunities, supervision and co-employees.

 

We have come to the
Conclusion that Blom bank uses several different types of reward system to
motivate their employees, the main and most effective ones are the financial,
in the form of bonuses and increased salary, if the bank want their employees
to be more effective, maybe shares can be part of the financial rewards.

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