The purpose of this master thesis is to, with the strategies of the organization and the preferences of the co-workers in mind, explore how reward systems can be designed in heterogeneous organizations. This is done by interviewing store managers and sales personnel in a heterogeneous organization. The frame of reference deals with theoretical approaches on reward systems and is divided in the following sections, individual or group based, differentiated or not differentiated rewards systems and goals, measurements and rewards. These sections are highlighted from the following aspects, equity, implementation possibilities and finally environment. The theoretical discussion ends in the conclusion that heterogeneous organizations should have several different reward systems, but not if a restructuring process is in progress or the system becomes too costly. Furthermore rewards systems should have less strength and be more frequently updated in comparison to homogenous organizations. The thesis ends with specific conclusions regarding the studied organization.

Background: Different forms of reward systems have been more common in Sweden and are used in purpose to motivate employees to work in accordance with a company’s goals. By creating work motivation among the employees, a more congruent situation can appear between them and the managers, and the company can perform better results. Purpose: The purpose with this thesis is to study and analyse a reward system from the employees perspective, regarding it’s affect on work motivation. Demarcation: Salary and reward are two different kinds of incitement and we will only focus on rewards that are received beyond the ordinary salary. We will also demarcate the thesis to focus on bonussystem as a form of reward system. Research method: We have carried out interviews with a person who represent the trade union and with three employees who represent the three different departments at the company. Interviews have also been made with the person who is responsible for the company’s reward system at Östgöta Brandstodsbolag. Result: The study shows that a reward system founds to be very positive among employees, due to that it is an extra compensation that can be received beyond the salary. A reward system is motivating when the employee gives the opportunity to influence the goals and measures. Communication is also of great importance to cause work motivation among employees.

Background: All companies and organizations use some kind of management control. A reward system is an example of a management control system, which is used to accomplish congruence between the goals of the employees and the goals of the organization. It is also used in order to motivate the employees and to encourage them to stay within the organization. Today it is difficult for companies and organizations to create and maintain well-functioning reward systems. At many universities individual pay is used as a means of a control system in order to motivate the employees. The public sector has specific characteristics that complicate its pay systems. This affects universities since they are a part of the public sector. Purpose: The purpose is to investigate if the individual pay used at universities results in expected effects, that is, if it motivates professors in their work. The purpose is also to explain why professors are motivated/not motivated by individual pay. Research method: The material has been gathered by interviews with eight professors at the University of Linköping. Conclusion: It is difficult to use individual pay in order to motivate university professors in their work. Professors rather seem to be motivated by non-material rewards than by material such. In addition, individual pay systems can have defects that lessen the possibility of motivating professors. However, if professors have the tendency to be motivated

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Sammanfattning Datum:                               2010-08-30 Kurs:                           Kandidatuppsats i företagsekonomi, FÖA300, 15 hp Handledare:                 Carl G. Thunman Författare:                  Feven Gebretsadkan och Mahabad Minozada Titel:                                   Belöningssystem – ett incitament verktyg för att skapa      motivation. En fallstudie av Sparbanken Rekarne Syfte:                                  Syftet med denna uppsats är att beskriva vad belöningssystem innebär och anställdas uppfattning av belöningssystemet och dess inverkan på motivation i Sparbanken Rekarne. För att sedan ge rekommendationer till förbättringar för hur Sparbanken Rekarnes belöningssystem kan ge mer motivation till de anställda. Metod:                               För att uppnå syftet samlades vetenskaplig information in från litteratur, vetenskapliga artiklar, tidigare uppsatser och övrig information från internet hemsidor. Undersökningen bestod av intervjuer med chefer och anställda på Sparbanken Rekarne. Intervjuerna bestod av personlig kontakt och individuellt med varje respondent. Två intervjuguider användes, varav en användes till ledningen och den andra till de anställda. Analys:                               I analysen har den teoretiska referensramen och den empiriska undersökningen sammankopplats. Slutsats:                             Rekommendationer till förbättringar för hur Sparbanken Rekarnes belöningssystem kan ge mer motivation till de anställda har tagits fram. Då det ska förbättra bankens framtida arbete med belöningar för att skapa mer motivation. Detta vidare genom att engagera de anställda mer i belöningarnas utformning.  Nyckelord:                         Belöningssystem, motivation, human resource    management, incitement, bank  / Abstract  Date:                                  2010-08-30 Course:                              Bachelor thesis in Business Administration, FÖA300, 15 credits Tutor:                                Carl G. Thunman Authors:                             Feven Gebretsadkan och Mahabad Minozada Title:                                   Reward systems - an incentive tool to create motivation. A case study of the Sparbank Rekarne         Purpose:                            The purpose of this thesis is to describe what a rewarding system means and the understanding of the employee to the rewarding system which gives effect to motivation in the Sparbank Rekarne. Recommendations to improve the rewarding system in the Sparbank Rekarne by which the employee will be more motivated is indicated the purpose. Method:                             In order to reach the purpose scientific information was gathered from literature, scientific articles, previous thesis and additional information from internet. The inquiry was done by interviewing the managers and the employee of Sparbank Rekarne. The interview was held personally and individually with every respondent. Two interview guides were used, one to the leaders and the other one to the employee.       Analysis:                           In the analysis the theoretical frame of reference and the empirical enquiry are combined. Conclusion:                      The recommendations to improve how the Sparbank Rekarne rewarding system can give more motivation to the employee have taken out. This can improve the future of the bank with rewarding in order to get motivation by involving the employee in working out the rewarding system. Keywords:                        Reward system, motivation, human resource management,    incentive, bank

För- och nackdelar med belöningssystem - en studie om Scania Vårt syfte är att beskriva hur ett belöningssystem kan vara uppbyggt och studera vilka för- och nackdelar ett belöningssystem medför. Vi studerar närmare hur Scanias belöningssystem ser ut och hur väl det fungerar som en motivationsfaktor för de anställda. Vi vill också undersöka om det finns något som kan förbättras med Scanias belöningssystem Vi använde en kvalitativ metod. Utifrån litteraturstudier skapades en referensram. Därefter intervjuade vi sex personer på Scania om deras belöningssystem. Utifrån resultatet från dessa intervjuer analyserade vi referensramen. Vi har kommit fram till våra slutsatser utifrån detta. Vi kom fram till att det inte finns något perfekt belöningssystem. Alla system har sina för- och nackdelar. Vi tycker att Scania har valt ett system som inte leder till missnöje eller orättvisor. Bonuslönen är inte direkt motiverande på kort sikt men leder på lång sikt till att de anställda känner mer samhörighet med företaget de jobbar i. Vi upplever att den största motivationsfaktorn i Scania är alla förmåner och utvecklingsmöjligheter som företaget erbjuder. / Advantages and disadvantages of reward systems – a study of Scania Our purpose is to describe how a reward system can be constructed and study the benefits and drawbacks of what a reward system entails. We are studying the details on how Scania's reward system is designed and how well it works as a motivation factor for the employes. We also study if there is anything that can be improved with the reward system that Scania has. We used a qualitative method. Based on literature studies, we created a frame of reference. After that we interviewed six persons at Scania about their reward system. Based on the results of these interviews, we analyzed the frame of reference. We have reached our conclusions from the analyze. We found that there is no perfect reward system. All systems have their advantages and disadvantages. We think that Scania has chosen a system that does not lead to dissatisfaction or injustice. The bonus remuneration is not directly motivating in the short term but in the long term it leads to that the employees feel more affinity with the company they work in. We believe that the most important motivation factor in Scania is all the benefits and opportunities to develop that Scania offers.

In 1984, in the background that the level of salary in Taiwan was far lower than Europe and America, UMC was the first company setting up the employee bonus shares as well as the allotment of stock dividends in order to allure the domestic and overseas elites. Afterwards, this mechanism has become the characteristic of Taiwan¡¦s electronic industry to appeal the talents . By 2007, the issue of expenditure of employee bonus shares emerged. Undoubtedly, the high technology industry, in which the employees benefitted the most from the system of employee bonus shares and the allotment of stock dividends, was the one being impacted the most. Therefore, every company took various measures to avoid the employees¡¦ leaving and maintain the company competitive in response to this situation. The system of expenditure of employee bonus shares has been conducted for 2 years since 2008. So the impacts of this mechanism have been presented and the influences of those responsive measures should have been in effect. What was the impact from the system of expenditure of employee bonus shares to Taiwan¡¦s high-tech industries indeed? What was the measure dealing with the human resources that each company took to reply this situation? Thus, this study took some Taiwan public high-tech companies and consultant companies famous for its specialization in employee salary and bonus as our case studies. Through the collection of these case studies, we found some common measures between these companies. Besides, to increase the practical value of this study, we analyzed the measures, the background factors, and all the impacts in details and in depth. In sum, we hope we could offer the directional guidelines for the development of innovative employee incentives and provide some advices to those companies encountering the problems in designing the reward system. The findings were listed as below: 1. For the most companies, they did not take the timely measures in 2008. In the year of 2008, the global economic climate declined. Each company focused on the matters how to increase the sales and decrease the expenditures, so they viewed the leaving of employees as healthy and allowed. That was why they did not take timely measures for the system of expenditure of employee bonus shares. By 2010, due to the economic climate recovery, the sales of each company turned better and the companies started to plan the new reward mechanism to induce and keep those elites in house. 2. Those responsive measures only focused on the adjustment of the employee reward system, but other human resources practices did not change too much. Those respondents emphasized largely in the adjustment of the salary structure or other new design of the reward system; however, they did nothing to the side of the human resources. 3. The number of transfer is expected to increase largely in 2010. Because the economic climate and the income of each company are getting better, the respondents all anticipated they will be impacted by the increasing turnover rate of their employees. Similarly, recruiting talents from other corporations would get intense and the employees would start to search the opportunity to serve in other company. In addition, the human resources would leap over from one industry to another, because the incentive of the employee bonus shares in high-tech industry disappeared. As result, the high-tech industry may not be the first priority for a job. The brand power of the company, the operating status, the vision of the future, and even the individual growth for the employees could be the major indicators for a job. To sum up, from the case studies in regard to the human resources practices in Taiwan¡¦s high-tech industry, we could find the system of expenditure of employee bonus shares did not bring the severe change to the human resources in Taiwan¡¦s high-tech industry. In fact, the hugest influence is that the high-tech industry is not so attractive as before anymore. In the future, competing for the human resources would not only limit to the high-tech industry, because other outstanding corporations from various industries and the foreign companies may lead to the flow of those elites moving between industries.

<p>Background: Diversified companies, for example audit firms, sometimes offer different kinds of products and services. Different key success factors can in the same company thereby evolve. Goal congruence has to be achieved in the business divisions as well as in the company as a whole even though each business segment might have to focus on different factors. </p><p>Purpose: The purpose is to analyze if differences in technology and culture between the business divisions in diversified companies motivate a differentiated reward system. Method: The study has a case study approach. The data has been collected through 18 interviews carried out at one of "the big four" audit firms with personnel holding different positions in terms of experience and management levels. The reason for choosing an audit firm is based on the fact that it is a distinct diversified company which utilizes reward systems. </p><p>Result: If differences in culture and technology within a firm are considerable the company tend to exhibit heterogeneous key success factors which implies that different kinds of achievements needs to be rewarded in order to create an effective control system. The study shows that a differentiated reward system is preferable if this is the case.</p>

<p>Background: Reward systems may be used in order to encourage different behaviors and to motivate employees in accordance with a company’s intended goals and results. To be able to design a reward system that leads to desirable performances, it is of great importance to be aware of the reactions that a reward system can emanate among employees. </p><p>Purpose Statement: The purpose is to analyze and explain the reactions of employees due to a reward system that has been designed and implemented by the management. </p><p>Research Method: We have carried out interviews with 2 middle-managers, 7 employees as well as the responsible of the reward system at Telia Kundtjänst AB in Norrköping. </p><p>Result: According to our study, reactions emanating from the implementation of a reward system appear as improvements as well as deterioration of performance. Further, our study indicates that the reactions can be explained by the injustice experienced among the employees, unclear goals and a deficient communication.</p>

<p>The purpose of this master thesis is to, with the strategies of the organization and the preferences of the co-workers in mind, explore how reward systems can be designed in heterogeneous organizations. This is done by interviewing store managers and sales personnel in a heterogeneous organization. The frame of reference deals with theoretical approaches on reward systems and is divided in the following sections, individual or group based, differentiated or not differentiated rewards systems and goals, measurements and rewards. These sections are highlighted from the following aspects, equity, implementation possibilities and finally environment. The theoretical discussion ends in the conclusion that heterogeneous organizations should have several different reward systems, but not if a restructuring process is in progress or the system becomes too costly. Furthermore rewards systems should have less strength and be more frequently updated in comparison to homogenous organizations. The thesis ends with specific conclusions regarding the studied organization.</p>