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Evaluating the Reward System Of Aso Savings and Loans Plc Abuja By John Jatau An action learning project

submitted in partial fulfillment of The requirements for the degree

MASTER OF BUSINESS ADMINISTRATION At Business School Netherlands Core Course : HRM Tutor Set Submission Date : Dr. Gbolahan Gbadamosi : ABJ 7 : SEPT 2009

Table of Contents
1. INTRODUCTION .............................................................................................................3
1.1 Problem Definition ..................................................................................................... 3 1.2 Purpose of Study ..................................................................................................... 4 1.3 Objectives of the Research ...................................................................................... 4 1.4 Research Methodology ............................................................................................ 5 1.5 Research Project Plan ............................................................................................... 5 1.6 Anticipated Limitations .............................................................................................. 6

2 LITERATURE REVIEW ............................................................................................... 7


2.1 Introduction ................................................................................................................ 7 2.2 Value of Reward ...................................................................................................... 7 2.3 Pay and Performance ................................................................................................ 8 2.4 Retaining Talents ..................................................................................................... 9 2.5 Conclusion ................................................................................................................ 9

3. RESEARCH METHODOLOGY ................................................................................ 11 3.1 Introduction .............................................................................................................. 11 3.2 Quantitative Research ............................................................................................. 11 3.3 Qualitative Research ............................................................................................... 11 3.4 Research Tools ....................................................................................................... 12 3.5 Analysis of Staff Survey .......................................................................................... 12 3.6 Interview .................................................................................................................. 12 3.7 Discussion with Colleagues ..................................................................................... 12

4.DATA ANALYSIS ...................................................................................................... 11


4.1 Introduction ............................................................................................................. 12 4.2 Value of Reward ...................................................................................................... 12 4.3Pay and Performance ............................................................................................... 12 4.4 Retaining Talents .................................................................................................... 12

5. CONCLUSIONS AND RECOMMENDATIONS ............................................................ 17


5.1 Conclusion .............................................................................................................. 17 5.2 Options .................................................................................................................... 17 5.3 Recommendation ..................................................................................................... 18

6. IMPLEMENTATION PLAN ..................................................................................... 20


6.1 Implementation ....................................................................................................... 20 6.2 Critical Success Factors .......................................................................................... 20 6.3 Conclusions ............................................................................................................. 21

7.0 BIBLIOGRAPHY .................................................................................................... 20


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1.0 INTRODUCTION In the face of Human resource management today, performance management cant be over emphasized, Performance management is the act of measuring performance against set targets and identifying opportunities for improvement or an iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success. (Performance Management: Focus on Performance Appraisals: Aaron Greenberg and Maureen Simunk-Appelt) in a bid to achieve the above stated, reward management cannot be left out. Reward Management on the other hand is concerned with the formulation and implementation of strategies and policies, the purpose of which is to reward people fairly, equitably and consistently in accordance with their value added to the Organization thus helping the Organization achieve its strategic goals. It deals with the design, implementation and maintenance of reward systems that aim to meet the need of both the Organization and its stakeholders. (Aso Savings and Loans proposed Reward Policy) This paper attempts to evaluate the reward management system as it relates to performance in the Aso Savings and Loans Plc, it shall take into cognisance the system obtainable in Aso Savings (what is obtainable right now) looking at the problems and proposing possible solutions or recommendations for improvements 1.1 PROBLEM DEFINITION 1.1.1. Aso savings and loans, is as at today the fastest growing primary mortgage institution in the country, holding the number one spot for mortgage creation in the federal capital territory, having initiated over 64% of mortgages on property owned by the federal territory including sales of Government houses. With a very well organized human capital management group situated in the Head Office in the central area of the federal capital territory, the performance management has always been the function of every stake holder, ranging from the operating core (foot soldiers) to the strategic Opex (top management). The bid to remain number one, has lead to a string of employment of various professionals of both local and international back grounds into strategic offices. This has put a lot of pressure on the reward system as to determining how staff
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should be valued for what they do and what they achieve. Having attracted good talents into the Organization what needs to be done to retain them within the system. 1.1.2. The performance appraisal of Aso Savings and Loans is marked against a balance score card. Having appraisals done bi-annually, covering financial and customers perspectives, internal business process and Learning and

Development measured against set targets. The problem remains that the criteria for rewards with respect to performance has not been perfectly spelt out; presently a reward policy is non- existent in the organisation. This has lead to unexplainable rewards in the past, leaving the staff highly de-motivated / demoralised as well as disgruntled as they feel side lined or less favoured by management and thereby leaving question What needs to be done to achieve employee motivation 1.1.3. The units/departments of Aso Savings and Loans plc have been classified into two basically; the income bearing and the cost centres. The question remain, how can the profitability of cost centres be measured as they also drive the business of the organisation. 1.2 PURPOSE OF STUDY The main purpose of the study is to essentially evaluate the current reward system as it relates to performance in Aso Savings and Loans Plc. Abuja, identifying its demerits and possible ways to strengthen the reward system to ensure organisational objectives of are met. 1.3 RESEARCH OBJECTIVES Primary objective of the research is to 1. Create insight on the reward processes prevalent in Aso Savings and Loans 2. Sort ways to improve the current reward processes with respect to performance, the need to achieve fairness, equity, consistency and transparency in reward allocation.

1.4 RESEARCH METHODOLOGY This will include references to the policy manuals of Aso Savings and Loans PLC and interviews with members of staff of Aso Savings, the head for human capital (HC&CM) as well as administer questionnaires to a number of staff in the operating core in a bid to discover what is the expectation of the average Aso staff in regards to the reward system obtainable. I shall also attempt to interview quiet a number of individuals from other Primary Mortgage institutions, Union Homes, Abbey Homes to ascertain what is obtainable in the industry. These research questions intends to address the setbacks linked to the rewards system and how they can be addressed. 1.5 RESEARCH PLAN S/N 1 ACTIVITIES Select Topic, Read up compulsory articles in HRM. Search for related articles to write ALP. 2 Do the Proposal to be discussed in the 1st subset review meeting and also surf the web in search of data for Literature review. 3 Write Chapter 2 and administer questionnaires and informal interviews. 4 Write 3rd to 5th chapters, which will be discussed in second 15th 22nd Aug subset review meeting 5 Complete chapter 6 and Appendix; send the completed ALP to subset supervisor for his perusal before the final subset meeting. 6 Submission of ALP and logbook 14th September 22nd Aug 5th Sept. 2nd 14th Aug 25th Jul 1st Aug DATE 19th 24th Jul

Table 1: Research Plan.

1.6 ANTICIPATED LIMITATIONS The researcher anticipates some difficulty in carrying out this research and this will include the following: Sourcing data from other organisations e.g. union homes and abbey homes as employees may not want to divulge information to an outsider. The researcher intends to use insiders hes familiar with to get the required information. Getting the heads of departments to be available for interviews, considering their busy schedules. Intend to conduct phone interviews where necessary and try to sneak in at less busy hours Slow response to questionnaires. The research obviously is going to be time consuming, hence considering the researchers working hours, time has also been identified as a limitation. Time management its therefore essential to mitigate this problem.

Chapter Two 2.0 2.1 Literature Review Introduction

This chapter shall focus on a widespread analysis/review of literature consulted with regards to the topic in question the Reward System of Aso Savings and Loans PLC. In this chapter, the works of scholars shall be reviewed, journals, articles from the internet, EBSCO library and a number of textbooks shall be quoted all in a bid to harness our understanding of the reward system and what is expected to make sure the rewards go in line with the set goals of the organisation at large.
2.2 Value of Reward

The concept of reward has been defined as all f the employers available tools that may be used to attract, retain, motivate and satisfy employees. This includes every single investment an organisation makes in its personnel and everything its employees value in the employment relationship (WorldatWork, 2000) Reward has been over the years an integral part of human resource frame work, with a bid to develop the most ideal frame work/structure that facilitates employee motivation thus boosting performance and profitability at large. Reward systems are the mechanisms that make this happen. "However, reward systems have been said to be much more than just bonus plans and stock options. While they often include both of these incentives, they can also include awards and other recognition, promotions, reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you. (Steve Jobs). Pay is an important feature of human resource management. It is the main reason for people to work. (Price, 2007, P467) the issue as to what reward should be and as to whether it motivates an individual has remained a topic of much controversy. Strategic success rests on how well the firm's reward structures support the firm's strategic intent. (Edward E. Lawler, 2000). Reward systems according to Wolf (1999, p.41), have been structure and are expected to meet the following criteria; Internally equitable paying employees in proportion to the relative value of the job; externally competitive, paying people in proportion to the market price of the job; and personally motivating to employees. The organisations reward system/

compensation scheme says a lot as to the organisations value for its employees
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and the culture of the organisation as well. Employees are more likely to look at what a company pays rather than what it says. Theres a high tendency for people to behave as they are rewarded. Michael le Boeuf is of the opinion that you get more of the behaviour you reward, You don't get what you hope for, ask for, wish for or beg for. You get what you reward 2.3 Pay and Performance Pay for performance is a motivation concept in human resources, in which employees receive increased compensation for their work if their team, department or company reaches certain targets. (Stefan Martinovic) When pay for performance salaries are properly implemented, everyone shares a common goal of doing what's best for the company. Wolf (1999, p.48) has stated that pay for performance is a holy grail of modern compensation administration widely sought but hard to actually achieve. As against the reactions of the early years where the apparently chaotic and disorganized structure of pay management between 1950s and 1980s were severely criticized by many commentators Price (2004, p.478), the fashion these days has been towards the development of performance-related pay schemes which are related to assessments of performance through individual employee appraisal. The primary problem is defining performance properly, so that the organization pays for results and not for efforts. Once over the hurdle, there remains the large impediment of finding enough money to make the reward for top performance meaningful. Typically, employers not on Pay for performance systems hold compensation reviews, or simply provide their employees with a set pay increase annually. When holding Pay for performance reviews to determine compensation bonuses, you must ensure that you can consistently and accurately measure performance for all employees. Stefan Martinovic (Resources for Entrepreneurs) An ad-hoc team was set up to appraise the structures available in the organisation, after appraising the performance system and reward structure of the Aso savings and loans on organisation, it revealed that performance wasnt properly measured and as such there was a need to first of all put parameters in place to measure performance and then seek ways to reward exceptional performance. it was noted that over the years, there had been no properly defined parameters as to which
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employees performances were measure and as such rewards were spread across board, irrespective of exceptional performance, the average performer was rewarded the same as the exceptional. Productivity bonus was shared based on cadres/level as salaries were reviewed from year to year irrespective of individual or team performances. Capability 2.4 Retaining Talents In recent years, attraction and retention of employees has become an increasingly significant aspect of building organisational competencies to guarantee continued competitiveness. Employee retention has moved onto the radar screens of corporate executives. From small businesses to major corporations, executives throughout the world have either witnessed or experienced the damages associated with employee turnover. The impact of excessive turnovers can be devastating lost customers, lost production, poor morale, unemployment claims, and hiring costs (Daisy Saunders). It has been argued that those organisations that invest resources in employee attraction and retention turn a potential problem into an opportunity to gain industry leadership(Box all and Steenveld, 1999). Hamel and Prahalad (1993) and Leonard (1992) highlight that in response to the shift to a knowledge-based economy, attraction, retention and, increasingly, the development of human resources are the key to the long-term renewal of the organisation. Cappelli (2000) showed that Traditional strategies for employee retention are unsuited to a world where talent runs free. Its time for some fresh thinking. In support of this assertion, Cappelli stated that: If you are like most executives today, you are a somewhat a poacher. Youre frequently looking outside your organization to find talented individuals to fill key positions and when you spot suitable candidates, you do what it takes to lure them away from their current employers. You offer big signing bonuses, buy out stock options and provide rich compensation packages to the prospective employee. All the while you know that other companies are busily rifting through your own organization, hoping to poach your best talent. At a time of greater awareness of the shortage of talent and increased competition for it, the imperative to manage it effectively is more urgent than ever. Leaders must make talent a priority at all levels of their organizations, create reasons for top talent to choose their companies, rebuild their recruiting strategies, create plenty of opportunities for development, and
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learn to identify their A (as well as their less capable) performers and invest in them appropriately (War for talent, part two.) The most recent survey by the Society for Human Resource Management (SHRM) indicates that the most common employee retention program is tuition reimbursement, followed by competitive vacation and holiday benefits, and then competitive pay (Colli.son & Burke. 20(B) organizations are attempting to be more strategic and innovative in how they design reward programs, focusing on such tactics as Segmenting the workforce by functions and individuals; Designing customized reward programs for these groups; Introducing more variable pay into the reward mix (Towers Perrin, 2004). In all of these many organisations look to the traditional HR policy for staff retention which is a pay increase. Apparently, a survey carried out by Walker Information for workers in 32 countries, it was discovered that the factors that most influence commitment are fairness, care and concern for employees, and trust (Walker, 2000), elements most influenced by one's direct leader or boss. So while employers rely on the more traditional HR programs such as compensation, commitment seems to be on a more personal level, and subject to positive influence by one's leader.

2.5 Conclusion From the preceding argument suffices to say that the reward mix is an essential part of HR for any organization. The reward system if well designed and implemented rolls up to increased productivity; value adding as well as total profitability to add value to Researchers, scholars and a number of contributors in this field expressed the opinion that compensation should be well designed in order to attract and retain talents. Talents retention strategy should be well conceived in such a way that both the employee and the organization will be contented.

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Chapter Three 3.0 RESEARCH METHODOLOGY 3.1 Introduction

Looking at the research topic and problem definition, an extensive research is required to be carried out. The methodology applied in the research is both quantitative and qualitative and includes responses gathered from questionnaires and responses from interviews, discussions and observations within the selected population sample 3.2 Quantitative Research

Quantitative research is normally used to explore research questions. The data collected takes the form of measurements or counts which can be statistically analysed; Measurement is often regarded as being only a means by which observations are expressed numerically in order to investigate causal relations or associations. It has been argued that measurement often plays a more enormous role in quantitative research methods.The process of quantitative research follows standard procedures, methods, forms of analysis and reporting the results of the research undertaken. This standardisation maximises objectivity. 3.3 Qualitative Research

Qualitative research offers insights and understandings of participants, which is unobtainable by quantitative research, but is more than just non-numerical research. It aims to study the subject in their natural surroundings and to collect naturally occurring, non-biased data. Qualitative research relies on reasons behind various aspects of behaviour. Simply put, it investigates the why and how of decision making, not just what, where, and when. It describes in words, rather than numbers, the qualities of the subject through observation. Methods of qualitative research include structured and unstructured interviews, group interviews and focus groups. Qualitative research typically relies on four methods for gathering information: (i) Participation (ii) Key interviews (iii) Direct observation, and (iv) Analysis of documents and materials. The target population is the staff of Aso savings and loans plc with a total population size of 547, the sample size determined on a 95% confidence level and confidence interval of 10 is 98. The methods adopted are both quantitative and qualitative approaches. It involved getting staff to respond to questionnaires,
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interviews and discussions held with employees of related firms to ascertain industry standards and also influenced the structure the questionnaire took. Hence, the sampling design used by the researcher aligns with qualitative methods of enquiry more, but we will also involve quantitative techniques for numerical measures and enhanced objectivity. 3.4 Research Tools

In order to get unbiased data to address the challenges of the reward system as outlined in the problem definition, there will be an extensive analysis of the data gathered from the questionnaire. The Head of Human resources in the organization will be interviewed as well as some other strategic Human Resource officers to get a status report on the organizations resolve towards improving the reward structure. 3.5 Analysis of Staff Survey

Having used the sample size calculator from creative research system, a sample of 100 employees was recommended. This survey entailed sending

questionnaire to 100 randomly selected staff of the organization to fill electronically and submit. There was also the option to fill in hard copy and submit by post. This survey was said to be successful as the responses were impressive, having all hundred respondents responding to the Questionnaire. This result will be analyzed in relation to the reward structure. 3.6 Interview

The head of Human Capital of Aso Savings and Loans Plc will be interviewed in respect to the organizations strategy as to administering rewards and to tackle the challenges. This interview will be helpful in arriving at recommendations. 3.7 Discussion with Colleagues

The researcher will engage his colleagues in discussions the office on matters surrounding the compensation framework. The discussions will be aimed at analysing the current system, identify the problems inherent and recommend problem solving ideas.

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Chapter Four 4.0. 4.1 Data Analysis Introduction

This chapter deals with the various research methods used in getting data as to the reward structure of Aso Savings and Loans. The data gathered and used are from the responses to questionnaires and interviews by employees of Aso Savings and Loans. . The data analysis for statements as were enquired about in questionnaires in relation to the
4.2. Value Of Reward

Statement 1: Aso Savings and Loans reward structure is standard (fairness, motivating) Data Analysis Percentage Strongly Agree Agree Disagree Strongly Disagree Frequency 0 0 5 5 19 19 76 74

Total 100 98 Table 1: Aso Savings Reward structure is standard (fairness, motivating)
80

70

60

50

40

Percentage frequency

30

20

10

0 strongly agree agree disagree strongly disagree

Fig 1. Aso Savings Reward structure is standard (fairness, motivating)

The result of the survey as depicted in the table 1 above as well as represented in fig. 1, clearly shows that 76% of the work force of Aso Savings and Loans strongly disagree with the statement that reward system in Aso Savings and Loans is

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strong, meeting The criteria of .fairness, measurability to mention but a few. This result is significant having a 19% also disagreeing to the same statement. There is no contesting that there is a great need for Aso Savings and Loans to enlighten its staff as to the existence of a reward system as well as review the reward strategy to meet certain criteria that aim towards the standardisation of reward structure Identifying the key areas that strike the cord, as management looks towards motivating employees to boost performance through rewards given. The employee who feels appreciated is likely to put in a lot more productive hours than a disgruntled staff. The organisation, must determine employee needs carefully as they design the parameters for rewards and motives behind rewarding the employee. This is only achievable if the reward system is evaluated. 4.3 Pay and Performance Statement 2: No differential reward between exceptional performers and average performers is
rewarded in Aso savings and Loans

Strongly Agree Agree Disagree Strongly Disagree Total


in Aso savings and Loans
70 66 65

Percentage Frequency 6% 6 66% 65 25% 25 3% 3 100 99

Table 2 differential reward between exceptional performers and average performers is awarded

60

50

40 Percentage Frequency 30 25 25

20

10 6 6 3 0 Strongly Agree Agree Disagree Strongly Disagree 3

FIG. 1 Differential reward between exceptional performers and aver. performers

The responses in respect to whether exceptional performance was rewarded in Aso Savings and Loans was quiet controversial as to Aso rewarding exceptional

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performance, but then again another question was asked, if there was a criteria by which the rewards were shared and the responses here depicted that there was indeed a disconnect between the reward for exceptional performance and the administrative formulae/ strategy for this allocation. Following interviews with some employees, we deduced from the perception of the employees that rewards were more subjective than objective. The criteria for what reward goes to who was not properly defined. These rewards were paid at the end of the financial year to every staff irrespective of whether he/she was an exceptional performer or an average performer. It is imperative to adopt a harmonized reward system where employees performances are measured appropriately and are rewarded with respect to value added. Wolf (1999, p.48) stated, The primary problem is defining performance properly, so that the organization pays for results and not for efforts. 4.4 Retaining Talents. Statement: Aso policy is able to attract and retain employees This survey was done in two cadres, the lower level employees opinions were sort as well as that of middle to higher level management. All these have been represented in the table and graphically in the figure below respectively. Percentages J. Executive 5 10 18 67 Percentage Mgt 59 38 3 0 100 100

Strongly Agree Agree Disagree Strongly Disagree Total Table 3 Responses of Employees separated by cadres (lower level and Mgt)
70% 60% 50% 40% 30% 20% 10% 10% 0% Strongly Agree Agree Disagree Strongly Disagree 5% 3% 0% 18% 38% J. Executive Mgt 59% 67%

Fig. 3: Attracting and Retaining Employees

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With regards to talent attraction and employee retention, certain fundamental issues have given rise to the question is the Aso package competitive enough? such things as the competitiveness of Aso Savings and loans Pay package as it compares to the pay for other players in the industry; having interviewed at random two managers from the major contender, Union Homes, and some employees of Abbey homes as well, it was ascertained that the pay package of Aso Savings and loans did not measure up to industry standard and as such makes the retention system very vulnerable at the lower levels. However the figure above depicts the responses of the employees of Aso Savings and Loans, having separated the responses based on cadres. The statement as to whether the policy applied by Aso Savings and Loans PLC is able to retain and attract new talents had two exclusively opposite results coming from the different cadres. The responses gotten from the lower level staff 65% strongly disagreeing to the reward system meeting retention/ attraction requirement,18% disagreeing, 10% agree and 5% agreeing, however the disagreement holds a higher and most significant percentage as against what is obtainable for those in agreement. The result from the responses of the higher level employees depicted as mgt on the chat had a different opinion, having 59% strongly agreeing to the statement, 38% agreeing, 3% disagreeing and having not one strongly disagreeing. Those agreeing make a more significant result on the statement. The discrepancies in the answers goes a long way to say the reward strategy in Aso savings flaunts one of the basic criteria as stated by Wolf (1999, p.41) who argues the compensation programmes have been structured to meet three primary design criteria. Which are; internally equitable, externally competitive and finally personally motivating it shows that there is a disconnect as to the reward pattern across the two cadres defined by the researcher. Having carried out phone interviews with employees of related organisations (both cadres upper and lower level) it was observed that the reward availed to the senior cadre of the organisation, matches and to some extend exceeds industry level, placing them on a competitive level with their contemporaries in the commercial banking industry. Going down to the lower cadre, the pay structure for the lower level or cadre, flaunts the criteria f or external competitiveness.

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Chapter 5 Conclusion and Recommendations


5.1 Conclusions

From the analysis in chapter four, following conclusions may be drawn: The major challenge as faced by Aso savings and Loans stands in the absence of a reward policy. This is responsible for the allocation proceedings with respect to rewards. The result gotten from the survey on the above discussed statements, its evident that theres a need for improvement. The study shows that: Aso savings reward system needs to be reviewed or evaluated and (95% agreed at varying levels). No differential in reward payment between exceptional and aver. performers (72% agreed at varying levels) The ability to retain and attract talents (resulted to an exposure of the inequitable structure between the cadres. We had 85% disagreement by the lower level employees and a 97% agreed by upper level.

5.2

Options Having considered the above, the management of aso savings and loans have three option open. To employee the services of a professional to design and implement an entirely new reward system Upgrade the present system by adding a little additions observations/ recommendation from the results in this research Leave the structure as it is and let the free market determine the outcome of events.

The table below illustrates the options analysis matrix in selecting the most suitable option. S/N Option 1 To employee the services of a professional to design implement an entirely new reward system Analysis This entails a seeking the views of an expert/ consultant on reward systems. Soliciting his expertise towards design a system that meets the needs of the employees. This should bring about the establishment of a policy manual by
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Upgrade the present system by adding a little additions observations/ recommendation from the results in this research

Leave the structure as it is and let the free market determine the outcome of events.

which processes will be accorded. Looking at the results of the survey, its evident that the problem(s) are eminent at different levels across the cadres. Its first of all paramount that management be gotten to buy in on the idea as to tackling the prevalent challenges faced. It is expected that if this is properly implemented, it will lead to a better motivated workforce which transcend to higher commitment of staff and higher profitability for the bank at large The present reward system is void of the basic/ primary requirements of a proper reward system as was stated by such scholars a Wolf (1999, p.41) such as internal equitability, external competitiveness and self motivating. These key ingredients are nonexistent and as such it will not suffice for just little amendments to be made. The system needs a total make over for it to work. . This entails letting the free market control things as business as usual is maintained. This in turn will lead to high turnover of employees and eventual decline in profitability for the bank at large. This is not recommended

Table 4: Options Analysis Matrix 5.3 Recommendations for Improving the Reward System Having considered the challenges of the present reward system and the options available to the management, the following recommendations are in the researchers opinion, options that could tackle the challenges at hand.

1. First of all, there is a need for a review of the entire reward system, a survey of staff expectation and reactions to rewards should be done regularly, from the responses gotten, meaningful modifications could be made.
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2. Performance to be measure properly, the need to track performances of individual staff to ascertain value added to the organisation by each employee.

3. The need for the establishment of a reward policy, stating all the proceedings and processes involved in rewarding the individual. This checks the challenge of inconsistency and should address the issues of fairness. Staff are able to make reference to the policy manual in times of uncertainty as to a reward.

4. Theres also a need to do a market mark up at least annually so Aso Savings and Loans is able to ascertain its market position in the industry and tests its incentive packages vis--vis other players in the market with respect to attracting and retaining talents. In view of the pay packages, the survey result stated that there is a need for an upward review of the pay packages for the lower levels in the organisation so they meet up with industry standard.

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Chapter Six 6.0 Implementation Plan The implementation of the suggested recommendation will be subject to management buy in/ approval. This survey will be submitted to the head of HR, who in turn will involve the strategy planning unit. This unit is responsible for strategic changes and policy formulations. The researcher is certain that the subject matter once presented will get attention from management as the topic in question is something that rocks the system right now. This is expected to in turn translate to less employee turnover, higher retention and a motivated work force with translates to greater profits for the bank as a whole. The implementation action plan is shown in the table below: S/N Task Responsibility 1 Presentation of survey results to Researcher HR department. 2 Review of Survey results as Strategy Planning against existing structure unit 3 Presentation of survey and projected outlook to management for approval Approval and referral for implementation Employee briefing as to modifications. Implementation and compliance

Time 1 week 2weeks

Strategic planning/ 1 week Human Resource department Management Committee 1 week

Human Resources 1 week Department Human Resources Ongoing process and Compliance for two to three Unit months

Table 5: Action Plan

6.1 Critical Success Factors The success of this projects implementation is highly dependent on the following factors. 1. Getting management buy in is off paramount importance as without management approval, what the researcher aims to achieve, will die a

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natural death, the ability of the researcher to convince the stakeholders, starting from the Head of Human Resources to the Strategic Opex is key.

2. The commitment of the employee as to response, as this research covers just a percentage of the banks population; the strategic unit may want to carry out a bank wide research. The employee buy in is essential. It is also important that the survey be anonymous so the staff feel free to express themselves and also commitment in the part of adherence and compliance is essential.

6.2

Conclusion

In the problem statement, it was clearly stated that there are innate paucities in the current reward system present in Aso Savings and Loans. As a result, there have been a bunch of disgruntle and highly de-motivated workforce. The short comings being from its unfairness, uncertainty, non clarity as to the parameters and justifications for rewarding and most of all the absence of a laid down policy in view of this. The survey enabled the researcher to critically examine the current structure, confer with relevant literature on the subject area, conduct interviews with relevant HR personnel of the organisation, as well as personnel of related organisation in the industry, check employee responses to the prevailing system, identify the major challenges faced and come up with recommendations.

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Chapter 7 Biblography Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Robert S. Kaplan, David P. Norton; Accounting Horizons, Vol. 15, 2001 Performance Management: Focus on Performance Appraisals Aaron Greenberg and Maureen Simunek-Appelt Office of Human Resources, Nova Southeastern University Human Resource Management in a Business Context, 3rd Edition, Thomson Learning, London Price, A. (2007) Innovative Reward Systems for the Changing Workplace Thomas B. Wilson, McGraw-Hill, Inc., 1994. Rewarding Excellence, Edward E. Lawler, III. San Francisco: Jossey-Bass, 2000. Employee Reward, Michael Armstrong The Journey Is the Reward," says Steve Jobs. How Should Pay Be Linked to Performance? Harvard Business Review Published: June 1, 2007, Jim Heskett Attracting and Retaining Talent: Exploring Human Resources Development Trends in Australia Peter Holland, Cathy Sheehan & Helen De Cieri War for Talent, part two: Axelrod, Elizabeth L., Handfield-Jones, Helen, Welsh, Timothy A. McKinsey Quarterly, 00475394, 2001, Issue 2 Wolf, M. G. (1999): Compensation: An Overview in Price, A. (2007): Human Resource Management in a Business Context, 3rd Edition, Thomson Learning, London

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QUESTIONNAIRE EVALUATING THE REWARD SYSTEM IN ASO SAVINGS 1. What do you understand by a reward system?

2. Do you have a reward policy in your organisation? Yes 3. How are the rewards determined? No

4. How are the rewards administered?

5. Is exceptional performance rewarded in your organisation? Yes No

6. How is this done please ( ratios, determinants of ratios/portion)

7. Do you think rewarding employees enhances performance? (please tick the appropriate) Yes 8. Do you think employees should be rewarded? Yes No No

9. How have the employees of your organisation responded to rewards in recent times? Please give out come( )

9b. Did it affect employee performance/ how?

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10. How do you think the reward should be administered?

11. In view of the above, in your own opinion, what do you think should be done to enhance the reward system of your organisation?

12. Do you see yourself being with Aso Savings and Loans in the next 5 years? Yes No

13. If you were given a similar package with another organisation will you take the offer? Yes No

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