For a team. Because each person has a

For an organization, implementing a compensation plan that rewards employees and teams for
successful work provides a great synergy for the teams to work and also for the organization.
Organizations take various approaches to make team-based rewards including programs for
individuals like incentive pay, recognition, appreciation, profit-sharing and gainsharing. Such
rewards help in enhancement of pro-social behaviours and as a result boost their capabilities,
flexibility, responsiveness leading to increase in productivity. This helps in better collaboration
and performance of the team. Also, cooperation amongst team members is often enhanced by
teams’ perception of fairness, which starts with an allocation of rewards that members consider
Sometimes, it is also possible that team-based rewards can suppress recognition on a particular
individual’s effort in it which can sometimes encourage withholding efforts leading to reduced
cooperation and team failures. Hence, if implemented incorrectly, team-based rewards can
increase destructive and/or competitive behaviour between and within teams in organizations,
rather than fostering cooperation. A system has to be established of differentiated compensation
based on the specialized skills each member providing to a team. Because each person has a
unique function and it’s relatively easy for managers to identify individual contributions.
Employees must be evaluated on measures such as job knowledge and work quality. All
members of a given team should be evaluated by one manager rather than a group of functional
managers. The organization must encourage teamwork and cooperation by acknowledging
individuals’ contributions to their teams and explicitly tracking and communicating the teams’
role in the its success.
Rewards and recognition is a something which should not only decided by the top management
of the organization. But, in fact it should be feedback driven process, that is, the employees
working in a team should be asked what he/she would prefer in rewards which will help them
motivate what they are doing. Similarly, for the team rewards, take concern of the team
manager as he knows his team members better and knows what can drive them to uplift their
efficiency of work. Also, recognition is not only supposed to be given at the completion of
task, but instead, it should be a continuous process at every milestone they achieve in reaching
their target with better performance which will boost their morale and team synergy would be
seen. Not necessarily the rewards should be in monetary form, it can be anything like
recognition on notice board, additional training programs etc.


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