Answered: AYIKI | bartleby

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 36P

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Question

AYIKI uses different types of reward systems in their stores around the world, but in the
future, the goal is to use a single system to make it fairer and easier to evaluate and
administer. At the store level of AYIKI, they use a premium salary system where the size
of the premium salary is determined by three parameters; sales, costs and customer
satisfaction. Depending on how the store has performed on these parameters, a certain
amount is paid for every hour worked by each employee the past year. The amount paid
is not dependent on what level of the store an employee works; rather, an equal amount
is paid for the same number of hours. They do not use any individual monetary rewards,
only group rewards. The total yearly premium salary does not make up a large percentage
of the employees’ income, at most about a half month’s salary. The reward system looks
the same at all stores in Malaysia but it is not used in the same way. Some of the stores
consider this system to be a very important motivational factor and highlights it to the
employees, whilst in other stores this system is not considered to be a great motivational
factor.
In addition to the usual payroll system, AYIKI tries to work as much as possible with
feedback and activities to show appreciation. Sometimes the employees get smaller
things, such as products from the store or cake at the staff canteen. The great possibilities
of development and promotion to another position and/or to another store, are an
important incitement. The idea is that all employees should make individual, self-made
plans for what they want to achieve at AYIKI, since there is no predetermined plan for
how a career at AYIKI could look like. As much as possible, AYIKI tries to use internal
recruitment to be able to satisfy and encourage their employees and assure that the culture
stays within the organization. The employees are encouraged to apply for new posts or
placements within the AYIKI group.
REQUIRED:
Provide your opinion on the incentives and reward systems used in AYIKI.

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