Extrinsic Rewards Case Study

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Pages: 9

Introduction to REFLECTIONS
“REFLECTIONS” is an emerging private school that has been striving to provide a balanced conventional and Islamic education to its students since 2004. It has around 225 employees (teaching + administrative).

Compensation System at REFLECTIONS:
 Extrinsic Rewards:
At REFLECTIONS, extrinsic rewards consist of the following:
Non-monetary Rewards:
a) Paid Time-off:
Every female employee is entitled to have a 40-days maternity leave each time she expects a baby.
Every employee is entitled to have 45-days paid leaves as to perform Hajj, once over his/her employment period.

b) Services:
School has a purpose built Day Care Room, where employees may leave their babies and the nurses take care of their babies. This facility lets the employees, with newly born babies, work
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 Variable Pay:
No matter how excellently an employee performs, there is no such concept of paying in monetary terms.

 Merit Incentives:
a) Individual Incentives:
‘REFLECTIONS’ typically focuses on Individual Incentives that are paid every year resulting as an increase in base salary after evaluation of annual performance of the employee.
The immediate supervisor of each employee reports the principal about the performance evaluation of his/her sub-ordinates.
The principal then chalks out her remarks and the ‘Mix’ of both is then presented to the board members.
Board members then compare the past year’s performance of each employee and then decide accordingly how much raise each employee is entitled of.

b) Team Incentives:
There is no such concept of paying incentives to teams based on extra-ordinary performance.

c) Organization-Wide Incentives:
Same as team incentives, no incentives are paid organization-wide.

 Suggestion