Course Works

Course Works on Choka


For every business, stable raw materials’ supply is an important aspect. Every business’ top management should ensure that vendors perform their respective duties efficiently. A business cannot expand or diversify products if it does not have a good inventory system (Brown, 2003). Additionally, an enterprise ought to develop a stable raw materials supply at the right time. The focus of this essay is on various aspects that a rewarding system should have to be viable. Intently, the system acts as the proposal for the company’s top management as well as the directors. In this section, the study examines the factors that influence reward system’s formulation. There are various features that are included in a rewarding mechanism.

The objectives and goals of an organization are highly important. The management ought to make a reward system that is aligned with the organizational goals (Cook, 2008). Any enterprise’s priority is to make the realization of organizational goals successful. Thus, instances of interference of the company’s objectives achievement ought to be avoided by the management in the establishment of a rewarding mechanism (Hippel, 2005). Additionally, product quality and quantity levels are important in a reward system’s formulation. It is important that a reward system makes product quality and quantity aspects evident. This can be achieved by making sure that all stakeholders are motivated by the established reward system.

Additionally, the timely delivery as a response aspect should be considered while designing the company’s reward system. There can be emergencies any time within a company requiring vendors to deliver goods on time (Laabs, 2007). Customer satisfaction features as well as individual value affect a reward system’s formulation process. Both companies’ top management ought to consider this aspect. Additionally, both companies’ management ought to ensure that the individual value’s aspects are considered. The performance criteria should be analyzed by both management teams to make sure that the criteria relates with the established reward system properly.

  1. Whether and Why the Plan should be Team Based or Individual Based

Any plan that is associated with Choka reward system ought to be a team-based system. In every organization, making decisions collectively is very important (Laabs, 2007). Every stakeholder should be involved in the establishment of the company’s reward mechanism. This is because all stakeholders will be affected by the mechanism and therefore excluding them in its formulation is unfair (Plant, 2000). It is important that the management ensure that there is an appropriate rewarding mechanism for the organization. Thus, the management ought to ensure that the system complies with the structures of the organization. Additionally, the management should ensure that the established reward system can bear possible constraints (Perkins & White, 2011). As such, a reward system ought to be team-based. All stakeholders should be allowed a chance to give their views.

  1. The Quantum of Risk Employees should be prepared to Accept In their Total Package

It is important that the employees be prepared psychologically since their earnings can reduce drastically (Brown, 2003). A reward system’s implementation can favor the employees that work hard while being unfavorable to truant employees. Additionally, there are employees who risk missing salaries. In case the focus of a reward system is on the employee’s work, then there are employees who might not receive payment once the month ends (Cook, 2008). In the analysis of the relative incentive pay ratio to the total compensation, this ratio might just be a small basic salary’s proportion. For instance, the incentive pay ratio to the total compensation might be 1:10. However, this ratio might be higher to reach 7:3 depending on the managements and it is the responsibility of the management to formulate an incentive pay ratio to the total pay that is viable.

  1. Whether Incentive Pay Should Fully Replace Traditional Pay and the reasons for this Recommendation

The normal system of payment should not be eliminated by incentive pay because this is the company’s culture. If traditional pay has been the trend, changing it can affect the firm negatively (Brown, 2003). Additionally, the employee should be assured that they will get something once the month comes to an end. If the focus of the system is on the incentive pay, then there are employees who might get nothing. Thus, implementing both incentive pay and traditional paying systems is necessary.

  1. The Criteria by Which Performance Will Be Judged and How This Will be communicated to Supervisors for Onward Transmission

Suppliers and employees’ performance levels will be determined by several aspects. Suppliers should supply superior quality products on time and also respond to emergency in a positive manner (Hippel, 2005). Additionally, vendors should be efficient and effective. The employees should report to work punctually, be efficient and work properly even in the absence of their supervisor. Additionally, workers should achieve the targets that the company sets (Laabs, 2007). Every vendor and employee should sign a performance contract. Employees should be allowed access to applicable criteria for a judging process. Supervisors should ensure that all vendors and employees get these copies. These copies can be availed to vendors and employees through the website of the company or at the reception.

  1. The Administration of the Reward System

There are reward system’s aspects that will be short term while others long term. Production cycles will not be matched by the employees’ basic pay but production cycles will be matched by incentive pay (Perkins & White, 2011). Vendors and employees might receive little basic pay with incentives that relate to their delivery schedules. As such, the company’s performance improvement process will be enhanced. The initial phase of this process should be implemented by the organization in short-run duration. Features that change the strategy of the business can be implemented later. In a nutshell, implementing a good rewarding mechanism is important as long as the mechanism examines every aspect indicated in this study.



Brown, M. E. (2003). Brave new world: Security challenges in the 21st century. Washington,        DC: Georgetown Univ. Press.

Cook, S. (2008). Customer care excellence: How to create an effective customer focus. London:    Kogan Page.

Hippel, E.. (2005). Democratizing the innovation. Cambridge, Mass: MIT Press.

Laabs, J. (2007). The business sale system: Insider secrets to selling any small business.      Madison, WI: First American Pub.

Perkins, S. J., & White, G. (2011). Reward management: Alternatives, consequences and   contexts / Stephen J. Perkins and Geoff White. London: Chartered Institute of Personnel             and Development.

Plant, R. T. (2000). ECommerce: Formulation of strategy. Upper Saddle River. NJ: Financial        Times/Prentice Hall.


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