Module 8: Portfolio Project

Running head: PM5OP1: REWARD PROGRAMS FOR INNOVATIVE GOODS 1

Sean Bender

HRM570 – Global Human Resource Leadership

CSU – Global Campus

Dr. Tiffanie Deloach

March 13, 2020

PM5OP1: REWARD PROGRAMS FOR INNOVATIVE GOODS 2

PM5OP1: Reward programs for innovative goods

The idea of using rewards schemes and programs for inspiring workers to create more

innovative goods through the implementation of a rewards program to crank out more innovative

products refers to procedures, processes, and standards their firm follows when allotting

remunerations and recompense to its workers. The prizes are distinct from the workers’ normal

wages, but can remain in the form of finances and monies, leaves of absence or vacation time,

discounts on the firms’ merchandise, or, yes, gratuities and bonuses. The drive of reward systems

is for a firm to show its gratitude to its workers for their pains and labors made by individual

workers, subdivisions, or team units. Job performances as well as the yielded results are the

primary basis for how incentive systems get determined. Their determination can also be due to

other aspects like superiority and seniority in the firm, or the length of time a worker has been

with their firm. An efficacious reward system obliges in the attraction, motivation, and retention

of workers, while simultaneously refining and enhancing collaboration and proficiency in a

business’s workers. Implementing reward systems create a surge in worker efficiency since they

enhance their organization’s efforts in furthering their abilities to reach its goals and objectives,

thus earning them rewards. Smaller firms incline to have worker appreciation programs which

consist largely of non-monetary motivation, like public recognition, and still retain all the

benefits.

Firms must have clear and concise strategies when arranging reward programs, especially

those based on new product innovation and the launching of such merchandises. Innovation is

critical to firms since it helps develop and maintain organizations while enhancing its degree of

effectiveness. Firms can be pioneering by using novel manufacture processes, production of new

goods, development of new resources or sales-market, or reformation. The design of worthy

PM5OP1: REWARD PROGRAMS FOR INNOVATIVE GOODS 3

reward system is not an easy feat, and one could recommend that management contemplate the

goals of their firm as well as the necessary actions required for the achievement of said goals.

The method also encompasses the determination of what criteria to base their new reward

program on, and what rewards are appropriate in response to what actions workers take.

Management ought to also take the workers into consideration, as well as whether they wish to

implement team-based rewards, and whether or not to implement variable pay, profit-sharing,

bonuses, or stock options. Something essential for management is the effective communication

of, about, and regarding the reward program, which ensures their workers fully comprehend what

their firm expects of and from them to receive potential rewards.

Connecting a reward program with the innovation of goods and products means that

workers coming up with novel ideas and launching new products receive different enticements.

To put emphasis on innovation, the firm can take innovation into account as part of the

evaluation of administrators so they inspire coworkers and subordinates alike to think of novel

ideas. The reward program carried out must also take the different methods of innovation into

consideration, and deliver ample and unbiased recompense to each contributor. Introducing and

advertising of products are in the same way as important a task as the other and firms should

acknowledge this, and provide enticements for fruitful labors. Firms can deploy reward systems

systematically, commencing with the country of origin and then disseminating to other states or

nations where the new good gets released. The strategy comprises providing the reformers a

malleable setting with distinct and realistic objectives set to provide a sense of resolve and

ownership.

The human resource management (HRM) role plays a substantial part in warranting that

the successful implementation of the reward system occurs in an international setting. The role of

PM5OP1: REWARD PROGRAMS FOR INNOVATIVE GOODS 4

the human resource (HR) function is in ensuring the reward system meets its goals and

objectives by means of continuous communication with laborers to obtain criticism, feedback,

and advice to further clarify the procedure. Assumed the stratagem is to be deployed

internationally, the HR function must observe codes of practice, ethics, and conduct set by the

differing nations regarding innovation. Management should embolden a place of work with an

environment in which there is an acceptance of failure and risk-taking to foster an innovation

culture of innovative thinking within the firm. When properly implemented, such reward systems

can be beneficial to the firm in terms of revenue, as new products lead to new markets, offering it

a competitive edge over others in the same industry. Workers are also more likely to remain

loyal and dedicated to a firm in which their contributions get recognized and their actions

rewarded. Unified teamwork and individual career development get promoted through such

encouragements as different units become determined to obtain the remunerations. Considering

the facts, one could endorse connecting effective reward programs with product innovation and

product launches.

PM5OP1: REWARD PROGRAMS FOR INNOVATIVE GOODS 5

References

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Cantamessa, M., & Montagna, F. (2016). The many types of innovation. In Management of

Innovation and Product Development (pp. 31–51). Springer London.

Haddud A., McAllen D. K., DeSouza A. R. (2018). Managing technological innovation in digital

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Inc., & Mansueto Ventures. (2020). Employee reward and recognition systems. Retrieved from

https://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html

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