Management Control Systems: Rewards Systems

1005 words 5 pages

A reward is a consideration that is given to an employee by the organisation on return to the quality of services rendered by the respective employee. Owners of the organisation (in most cases, shareholders) are the ones who will approve the rewards to employees including the directors, head of departments and the lowest cadre of employees. A company may also reward non-employee stakeholders for their contribution to the organisation.

The rewards systems as part of the management control systems, are designed in organisations to motivate employees and managers to perfom better. A well designed rewards system is expected to motivate people to contribute to the attainment of
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Secondly, managers are given targets, say sales targets for people under him to achieve. He has the responsibility to plan the manner of achieving those targets with his/her team, and suggests the way forward. He or she will request for whatever resources that they will need to achieve the targets. Regional Managers for example are responsible and answerable for regional sales which are their main perfomance indicators.

Also, these targets like sales targets are usually very challenging, but attainable. They motivate and force people to work hard throughout the week but they are able to achieve them with more efforts. They are achievable targets although they are not achieved every month. Non achievement in one month becomes a challenge for other months rather than demotivator.

These reward systems, like Nyota Awards, sales targets, production targets designed by TCC are all very easy to understand. This has also been a factor for the successfulness of these systems.


Considering the nature of the business that TCC is dealing with, the reward systems was important, necessary and inevitable. It is a business which has challenges especially in marketing or advertising it, although external competition is not very stiff.

Reward systems at TCC has contributed a lot to achieving of sales and profits targets, and in many cases overachievement has been


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