REWARDING PERFORMANCES

Employee reward encompass how people are rewarded in accordance with their value to an organisation. It is about both financial and non-financial rewards and includes the strategies, policies and processes used to develop reward systems

The aim of employee reward system and practices is to help attract, retain and motivate high-quality people. In return for their commitment, employees expect financial rewards such as salary, fringe benefits, bonuses or share options. They also look for other rewards such as recognition of competence, achievement, responsibility, influence or personal development. Getting employee reward strategies wrong can often have a significant impact on motivation, commitment and morale.

Fringe benefits Human resource management: Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. Some fringe benefits are regarded part of a taxable income. benefit.html#ixzz4296Epkoq benefit.html#ixzz4296Epkoq

Bonus Gratuity given as gift, or compensation earned as reward upon achieving a goal or milestone. oAIb oAIb

Share options a right to buy or sell shares at an agreed price at a time in the future option.html#ixzz42973I7dq Employees have the right to buy a specified number of the company’s shares at a fixed price for a specified period of time. After this period of time, employees can exercise their share options and sell or retain the shares. The gain or loss lies in the difference between the fixed price and the market price.

Textbook P. 28 P. 29: audioscripts are the end of the book: p P. 30

PRP – Case Study NOKIA CORPORATION (textbook pp ):

NOKIA PRP System Read Nokia’s report on executive compensation on your textbook: p. 32. Now check the same document on Nokia’s website (open the PDF of the «Remuneration statement): governance/compensationhttp://company.nokia.com/en/about-us/corporate- governance/compensation Compare Nokia’s PRP criteria and forms of executive compensation as presented in the book with the ones presented in the website (pp of the PDF published on Nokia’s website).

Compare Nokia’s PRP criteria and forms of executive compensation as presented in the book with the ones presented in the website (pp of the PDF published on Nokia’s website). On the PDF read the following sections: -Executive compensation (p. 93) -Compensation philosophy, design and strategy (p. 94) -Compensation structure and goal setting (p. 95) -Compensation governance practices (p. 97)

Examine especially the following elements: - How Nokia’s compensation system has changed in 2014 and why that year? -What does it mean the Nokia’s compensation system is based on a mixed structure and what may be the advantages and disadvantages of that structure? -Who decides about the allocation of compensation?

On the DVD included in your book: Watch Sequence 2: Managing People The case of energyseYou, a UK company expert in employee well-being. What are the workplace-related problems underlined in the video and what solutions does the company offer?

ENERGYSEYOU The problems highlighted in the sequence are related to PCs use and sedentary life: what does it mean? What are the general health problems listed in the video? What are the services provided by energyseyou? 1- workstation assessment service; 2-energysing neck, back and shoulders. What are their workshops about? The interviewed manager stresses the importance of «creating the right culture» at the workplace. What does it mean?

What is work-life balance and how it influences workplace well- being? What employers could do to improve well-being at their companies? What employees could do to improve their own well-being at work?