(Solution) 5HR03 (AC2.2) Explain how contingent rewards can impact Middle East individual team and organisational performance
Solution
Contingent Reward– These are defined by CIPD (2024) as rewards form provided in line with performances. Their provision to staff is intended to achieve set target and behavioural expectations.
In offering tangible and intangible rewards, the examples are bonuses, recognised, promotions and benefits given with its alignment to the organisation goals. In Eco-Insulate organisation, increasing the current motivation lacking, engagement scope and performance need contingent rewards.
Individual Performance
Contingent rewards positively influence people motivation and execution of their roles. A case example is performance-based bonuses in Eco-Insulate factory-based staff would be rewarded after exceedingly executing their functions by calling upon them to be consistent with quality. The merits/positives of this entail optimum efforts put by the employees in regard to increased recognition, satisfied and high retention (CIPD, 2022a).
Further, enhancing fairness and transparency in performance management is core to mitigate dissatisfaction issues. For Eco-Insulate, the findings in Thneibat (2022) recommend need for performance-oriented rewards offered to ensure individualised input recognition, satisfied and turnover mitigated.
Teams Performance
Contingent rewards in Eco-Insulate case guarantee bonuses to the teams for achieving collaboration and performance-based cultural strategies. For instance, by offering incentives to teams in manufacturing department, they would meet and supposedly exceed set performance goals of larger organisation (CIPD, 2025). They share appropriate strategies hence work in teams reducing internal competition and lack of sense of belongingness lacking.
Besides, for negatives, contingent rewards are associated…….
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