Graduate School of Management

Masters of Management
Operations Management MGT6420
Individual assignment
Rewards and recognition process in Bemis Asia pacific sd
bhd
Prepared by:
Rukaya Bhat G1232426
Lecturer:
Dr. Rafikul Islam

Executive summary
There is much evidence to suggest that making people feel valued, and that their contribution is
important and recognized, is the best basis for a committed and motivated workforce that will go
the extra mile. In order to attract and retain the best employees, companies must aim to create an
environment where employees feel appreciated for their contributions. Recognizing their efforts
and presenting them with monetary and non-monetary rewards help companies to create a right
workforce for organization that can be partner in success. Recognition of their efforts and
boosting their morale results in increased productivity and decreased attrition rate. The purpose
of this study is to investigate the process of reward and recognition and how effective is the
process in one of the Malaysian manufacturing unit of Bemis Asia pacific which is a subsidiary
of Bemis co. Inc. Bemis Co. Inc. is a multinational company in North and South America. It was
founded by twenty-five year old Judson Moss Bemis in 1858 in St. Louis, Missouri. It is a major
supplier of flexible packaging and pressure sensitive materials used by leading food, consumer
products, medical and pharmaceutical companies worldwide. The information was gathered
through interview of employee working in Bemis Sdn Bhd. From the collection of data it was
found that the company believes that recognition should be an on-going process and there is not
a need for employee recognition program. Hence there is issue with reward system and there is
no formal recognition program. Therefore study is concluded with some recommendations and
there are some references used in the study.



INTRODUCTION
Background of Bemis co. Inc.
Bemis Co. Inc. is a multinational company in North and South America. It was founded by
twenty-five year old Judson Moss Bemis in 1858 in St. Louis, Missouri. With only $2000 of his
own savings and six sewing machines, two printing presses, and some wooden type donated by a
cousin, Bemis grew his small business into the largest bag manufacturing company in the United
States. In 1867 Judsons older brother Stephen Allen Bemis, arrived in St. Louis from California
to work at Bemis and brown. The brothers found their partnership to be such a success, that in
1873 the companys name became Bemis Bro. & Company, while the name changed to Bemis
Company, Inc. in 1965. Bemis have gone from producing cotton and burlap bags for millers
along the Mississippi River to creating technologically-advanced flexible packaging and pressure
sensitive solutions for a variety of modern markets.
The Companys business activities are organized around its three reportable business segments,
U.S. Packaging, Global Packaging and Pressure Sensitive Materials. At present, it is a major
supplier of flexible packaging and pressure sensitive materials used by leading food, consumer
products, medical and pharmaceutical companies worldwide. The Global Packaging segment
includes all packaging-related manufacturing operations located outside of the United States as
well as global medical device and pharmaceutical packaging manufacturing operations. The
Company is included in the S&P 500 index of stocks and reported pro forma 2009 net sales of
$4.8 billion; It is Headquartered in Neenah, Wisconsin; and operates 78 facilities in 12 different
countries it reported 2010 net sales of $4.84 billion with 2011 net sales of $5.3 billion. It
employs over 20,000 individuals around the world. The Companys flexible packaging business

has a strong technical base in polymer chemistry, coating and laminating, film extrusion, printing
and converting. Over two-thirds of Bemis packaging is used by different industries worldwide.
Ever since its founding, Bemis has played an influential role in the packaging industry. It serves
customers worldwide. It produces packaging for products virtually found in every aisle of the
grocery store.
Bemis strategic advantage is its strong technical expertise in polymer chemistry and material
science. Bemis packaging solutions meet customers needs for protection of product, safety,
freshness, sustainability and shelf appeal. Bemis has won the Packaging World Leadership award
for 2010. The program was established by Packaging World to honor excellence and leadership
among packaging machinery, material and service suppliers. Packaging professionals cast over
6,000 votes and Bemis was chosen as the leading company in the flexible packaging division. It
was named one of the Worlds Most Admired Companies by Fortune in 2011. Moreover, by
Forbes in 2010 it was named one of Americas 100 Most Trustworthy Companies, and also was
named to Newsweeks list of Greenest Big Companies in the U.S. Bemis has won 15 DuPont
Packaging Awards since 1987, more than any other company.

Countries where Bemis sell to are Malaysia Brunei, Singapore, Philippines Thailand, Japan,
India Korea, Australia, Sri Lanka, Taiwan, China Vietnam, and Indonesia. Bemis contributes
over $3.25 million annually to charitable organizations and programs in our communities around
the world.

Mission of Bemis co. Inc.:-
Bemis is and will remain:
A valued supplier of quality products to their customers;
An employer providing a challenging and satisfying occupational experience for their
employees;
A rewarding investment for their shareholders; and
A responsible citizen of the communities where we are located.
Bemis Asia Pacific
Bemis Asia pacific was established in 1998. It is a subsidiary company for Bemis Company. It
serves in for Asian countries. Its manufacturing plant in Malaysia currently holds manpower of
160 employees in its 80,000 square feet plant, located in Selangor, Malaysia. Its future
Expansion plan is (500000 sqf land) - 2014. Bemis Sdn Bhd is one of the reputed companies.
From its establishment of more than 16 years, it has maintained a good reputation in the
packaging industry for its consistent quality. Its Manufacturing Capabilities include Controlled
Environment Manufacturing Area (CMEA), Visual Inspection System, Printing wide range of
substrates, Laminating, Pre-made Pouches, and Trays. It is certified with -ISO9001 2008.
Market for their products include processed fresh meat, liquids, snacks, cheese, coffee, candy,
personal and hygiene care, disposable diapers , medical devices etc.
Its package development and customization abilities, coupled with rapid turnaround times has
helped manufacturers in bringing new products to market in record time-without sacrificing
quality or performance. Bemis in its packaging services has been known for the high quality

materials, thus providing best quality at competitive prices. While some flexible packaging
manufacturers have reformulated to the cheapest raw materials available, but this company
continue to use high-quality materials in their products to ensure that the packaging performs
consistently throughout the distribution and lifecycle of the product. Polymer resins and films,
paper, inks, adhesives, aluminum, and chemicals constitute the basic major raw materials. Raw
materials are purchased from a variety of global industry sources and the Company doesnt
depend upon any one supplier for its raw materials.
Unlike other flexible packaging manufacturers who offer standard models of flexible packaging
materials Bemis offers customized applications & solutions in packaging. With so many flexible
packaging options available, selecting the right type of packaging to meet your products specific
requirements can be a challenge. Bemis has a distinct competency in form of engineers who
analyses products and work with clients to create the ideal packaging structure based on
products. Nevertheless Bemis can could said to have the technology and expertise to protect and
enhance clients product packaging needs.


Bemis Asia Pacific VISION
To be the Provider of Choice for RISK FREE Innovative Packaging Solutions to the
Industries that they serve
Purpose of study
Companies today have begun to use Employee reward system as a tool to increase employee
performance. The purpose is to study what and how effective is the process of reward and
recognition within Bemis Asia Pacifics Malaysian unit.
Rewards and recognition
To retain efficient and experienced workforce in an organization is very crucial in overall
performance of an organization. There is much evidence to suggest that making people feel
valued, and that their contribution is important and recognized, is the best basis for a committed
and motivated workforce that will go the extra mile. Motivated employees can help make an
organization competitively more value added and profitable. Efficient employees are retained
with the organizations by motivation, thus reducing extra costs of hiring. The highly motivated
employees can serve as the competitive advantage. When employees understand that their
achievements and efforts are recognized and rewarded they will perform better. In attempt to
motivate, employers can use rewards and recognition to motivate employees. Thus Rewards and
recognition could act as the best motivating factor which results in increased productivity of the
company.

The basic purpose of recognition and reward program is to define a system to pay and
communicate it to the employees so that they can link their reward to their performance which
ultimately leads to employees job satisfaction. According to Colin Pitts et al. (1995) reward is
the benefit that arise from performing a task, rendering a service or discharging a responsibility.
The rewards include the financial rewards, pay and benefits, promotions and incentives that
satisfy employees to some extent. Recognition must be consistent, given in a regular basis, and
most important, part of the organization.
Oosthuizen (2001) stated that it is among the function of managers to motivate the employees
successfully and influence their behavior to achieve greater organizational efficiency. All
employees are eligible for rewards, Teams and groups, as well as individuals, can be rewarded.
Lawler (2003) argued that there are two factors which determine how much a reward is
attractive, first one is the amount of reward which is given and the second one is the weightage
an individual gives to a certain reward. There are two kinds of rewards including: intrinsic
rewards and extrinsic rewards. The satisfaction or accomplishments an employee gets from the
job itself are intrinsic rewards. Extrinsic rewards are rewards an employee gets from the
employer such as praise, money, a promotion, or benefits, etc.
Extrinsic rewards are divided into two groups: Financial and Non-financial rewards. Employee
can get financial rewards directly or indirectly. Rewards such as wages, bonuses and profit
sharing are the financial rewards which an employee can get directly. Indirectly financial
rewards can be pension plans, paid vacations, paid sick leaves (De Cenzo/Robbins et al, 1996).
Research has revealed that non-financial awards may be more rewarding than financial awards to
many employees (De Cenzo/Robbins et al., 1996).While taking Malaysia into consideration, a

survey was conducted in Malaysian Organizations found that most of the employees prefer to
have a cash reward. (Rafikul, 2004).
Employees always dont want good salary and a benefit package; they also want value and
appreciation for their work. Money doesn't always create passion, quality or innovation.an
individual needs money, but he craves for recognition Results from a survey by the council of
communication management (Nelson, 1994) confirm that when it comes to employee
performance, majority of employees consider recognition for job well done the top motivator.
Recognition is profitable, the four types of reasons are there for organization to have recognition
program: higher profits, lowered turnover, higher productivity and higher customer satisfaction
(Elton & Gostick, 2001). Recognition must be timely, frequent and specific. There are two kinds
of recognitions: informal recognitions and formal recognitions. Bowen et al. (2000) underlines
some examples of informal recognition which are as follows:
Time off with pay,
Lunch on the house,
Cards and letters for all occasions (Birthdays, Thank You Notes)
Certificates for outstanding service, ideas, top productivity (giving the extra mile)
Formal Recognitions are concentrated from an organizational achievement perspective,
Where employees are recognized when they achieve organizational objectives, when
They meet performance goals, solving departmental organizational problems (Bowen et
al., 2000).
Bowen states that compared with informal recognition, the formal recognition
Programs lean to:
Look out over longer time horizons

Incorporate benchmarks, e.g., years of services or achievements, profit objectives, etc.
Be performed-based
Focus on the value of the organization, e.g., employee commitment, market appreciation,
investor loyalty, etc.
Be connected with the organizations compensation programs
Involve both reward and risk
Planned, rather than spontaneous
When recognition program are in place, employee feel valued, therefore they become
more dedicated to help organization to meet their goals. Various reasons for
implementing a recognition program are Create a positive work environment, Supporting
a culture change, Creating a culture of recognition, Motivating high performance,
Encourage loyalty, increasing employee morale, Supporting the organization mission and
vision, , Reinforcing desired behaviors, and many more. Other reasons for adapting a
recognition program included: reducing costs, increasing competitiveness, retaining key
employees, revenues and profitability, improving quality, safety and customer service,
and lowering stress, absenteeism, and turnover (Daniel & Metcalf, 2005).
The three simple guidelines for giving effective recognition are:
1. Identify an opportunity to give recognition.
2. Describe the behavior as immediately and specifically as possible.
3. Describe the impact on you and the organization (Achieve Global, 2003).


Methodology
As the current study is looking at the process of reward and recognition system in the Bemis
Asia pacific, qualitative approach was used in order to get reliable data. Information was
gathered from one of the employee of companys Malaysian unit, through a an interview.
Questions were asked mainly related to reward and recognition system. The data was then
analyzed to obtain the meaningful information for study.
Reward and recognition system in Bemis Asia pacific
Basically, the reward system in Bemis is comprised into 2 types: - extrinsic and intrinsic rewards
1. Extrinsic reward: - In the form of salary, incentive pay and benefits, reward for
undertaking work in employment. Salaries are derived from the position/ working experience
and usually based from the discretion of the management team, to determine the salary package
and scheme of each employee in Bemis. The employees in this company are categories into 2-
Production group and Administrative group. Hence, there are significant differences pertaining
the salary scheme.
This type of reward is meant to recognizing the value of employees roles and contribution in
performing their work. Extrinsic rewards are provided in the form of non-cash and cash basis.
Non-cash basis can be in the form of health care provision, company cars or paid holidays. Cash
basis can be in form of over-time work hours provision, meal allowances and etc.
2. Intrinsic reward

In Bemis, intrinsic reward are being utilized as a form of appreciating the value of the work
performed by the employees, the quality of the work and as a way to recognize the sense of
commitment displayed by the employees. On the other hand, development-oriented rewards that
tend to be more individually directed may be offered to recognize employee aspirations to
receive learning and development opportunities, and to gain acknowledgement of outstanding
work and build feelings of accomplishment wherever possible consolidated tangibly through
career advancement. Example of the intrinsic reward is Employee of the Months award, Zero-
Accidents Occurrence for department, Long Service Award and etc.
Issue with the reward system
1. The compensation doesnt match with the level of commitment and contribution by
employees- salary packages are viewed as lower than standard market rate.
2. The KPI metrics constantly changes overtime, with less consideration in improving the reward
system
3. Employees motivation and morale are at risk, if no vast or major re-structuring of reward
system
Recognition system in Bemis
Although some employees are self-motivated at Bemis therefore, recognition does not have the
same effect on all employees. But for committed employees, recognition must be given to keep
them motivated, appreciated and committed. Recognition systems in Bemis are designed to
functioning as ways to appreciate the employees and suppliers, and to promote quality type of
work. The main elements to be instilled through recognition are the sense of belongings and

commitments in delivery the work from each employees and suppliers. Example of recognition is
as follow:
1. Customers:
Baxter Supplier of the Year -2000, 2002, 2003, 2004, 2005, 2007, 2008, 2009, 2010
Baxter Appreciation Award 2001
Baxter Recognition Award 2003
2. Industry
Industry Excellence Award 2002
Export Excellence Award 2002
Conclusion and recommendations
Over all, the managers at Bemis Company are doing an average job of using recognition and
trying to stay active in their employee's career objectives. However it is noticed from the data
that the company doesnt have an improved reward system and currently there is no recognition
program in place. No doubt that company presently stays competitive with higher productivity
and profitability, but employees are not highly motivated, their morale are at risk. Moreover,
there is also lower job satisfaction among employees. The culture of the company believes that
recognition should be an on-going process and there is not a need for employee recognition
program or annual performance appraisals. Although times, values, and employee needs are
changing, employees may not be always self-driven.

In order to retain talent and stay competitive in future as well, there is need for some formal
recognition program. Company should decide what kind of recognition to use, what tools to use
to measure its effectiveness, and what the budget should be. Recognition program is also
beneficial when job satisfaction is low, It will keep the employee feeling valued having continual
passion for the job they are doing. It will also help in maintaining a healthy relationship between
employees and company. The company should improve the reward levels which in turn lead high
satisfaction and the employees who are satisfied will stay with the company. When the
workplace is pleasant and satisfying, individuals come to work regularly. They should make
reward system more attractive for achievement-oriented individuals since they like environments
in which their performance is rewarded. Further an effective reward system should be used
which would motivate individuals to learn those changes which are rewarded. When the
company has money to spend, they should increase the cost of rewards. Well Overall; the power
of recognition can sustain productivity, increase retention, create stronger more directed
commitment, and allow managers to communicate values in powerful, lasting way (Elton &
Gostick, 2004).
REFFERENCES
RColin, Pitts (1995) Motivating your Organization: Achieving Business Success through Reward
and Recognition, McGraw-Hill Book Company Europe, England. ISBN: 0-07-707967-
1eferences
Oosthuizen, T. F .J. (2001). Motivation influencing worker performance in a technical division
of Telkom SA. Acta Commercii, 1, 19-30.

De Cenzo, David A. and Robbins, Stephen P. (1996) Human Resource Management, John Wiley
& Sons, Inc., New York, Chichester, Brisbane, Toronto, Singapore. ISBN: 0-471-12420-6
Rafikul Islam, Ahmad Zaki Hj. Ismail (2004), Ranking of Employees Reward and Recognition
Approaches: A Malaysian Perspective, Journal of International Business and Entrepreneurship
Development ISSN 1549-9324, August/Vol 2, No.2.
Elton, C., & Gostick, A. (2002). The 24-Carrot Manager. Layton: Gibbs Smith Publisher.
AchieveGlobal(2003). Giving Recognition. Achieve Global Facilitator Guide. Tampa, Florida,
USA: AchieveGlobal Corporate Headquarters.
Daniel, T., & Metcalf, G. (2005). Employee Recognition: Selling, Implementing and
Communicating the Program. American Society for Training and Development HR
White Papers.
Lawler, E. E. (2003). Treat people right. San Francisco: Jossey-Bass Inc. McGraw-Hill Irwin.




























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