Professional Documents
Culture Documents
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Submitted date
13th MARCH 2017
1.0 Overview
1.1 Article
According to the Adrian Lim (2016), transport operator Singapore Mass Rapid
Transit (SMRT) are giving a bigger portion of bonuses to their staff to ensure the
service run smoothly using a team-based incentive system. For example, bus drivers
and operation staff at depots will be evaluated as a team and will have key performance
indicators (KPIs) such as running their services on schedule and meeting the safety
standards. According to the Gerard Koh, the vice-president of SMRT for human
resources, the employees have to work together as a team. The purpose of the action is
to make sure that the service will drive better for the customer. Mr. Koh said that 70
percent of staff bonuses will be paid according to operational KPIs, and it will increase
to 80 percent with the team-based incentives. These may be paid on top of the two to
three months of annual bonuses that SMRT staff get.
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The transport operator SMRT is took a step to develop the new remuneration system for
their workers. Base on the article, this action is need to do for achieving their aims that to get
their staff to work as a team to ensure trains and buses system run smoothly. In order to make
the goals achievable, they were plan to using a team-based incentive system.
Base on the journal by Hoffman and Rogelberg (1998), there are seven major categories of
the team base incentives system. The categories are team profit-sharing or gain sharing, team
goal-based incentives systems, team discretionary bonus system, team skill incentives systems,
team member skill incentives system, team member goal incentive system and lastly team
member merit incentives system.
The SMRT’s company they stated that earlier, seventy percents of the staff bonuses is
based on their operational key performance indicators. Now, they decided to upgrade new
remuneration system that is pay based on the team based incentives. The vice president of
human resources of this company believe that with the new structure of remuneration, the staff
bonuses will increased about eighty percents than earlier only seventy percents.
The new system that will implement by this company shows the team base incentive base
on team goal based incentive systems, team skill incentives systems and team member skill
incentive systems. For example, there are different group of workers that work for SMRT that
is including bus drivers, operator staff, maintenance line managers, maintenance crews and so
on. For all this worker, they evaluate base on their skills and performance indicators in each
job so that it will reflect the workers job performance as well as their pay. The vice president
of human resources in this company also indicate that a worker who is works under rolling
stock maintenance crews will be evaluated base on their skills on how reliable trains are in
operation as their team need to make sure the trains are well serviced. Furthermore, the bus
drivers and operation staff at depots also evaluated base on their performance on delivering the
service such as running bus services on schedule and meeting safety standards. This bus drivers
and operation staff will be evaluated as a team and they have their own performance indicators
that will justified whether they will get their bonuses. Here is the table to show the workers at
SMRT task and how they will be evaluated.
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Table1: The example of SMRT workers task and performance evaluation for pay system.
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This system is quite different from team goals incentives because the
members are rewarded when they are achieving their individual goals. The goals
set are must be conjunction between team members and supervisor desire.
Furthermore, the system also effective for both full time and part time teams. The
reward that will given by organization also differential base on members
contribution on the task.
As the SMRT want the bus drivers and operation staff at depots be evaluated
as a team, and there is a certain criteria that they should achieve such as running
bus services on schedule and meeting safety standards. Thus, the employees should
work in a team to achieve the Key Performance Indicator (KPI). If the KPI is
achieve, then they will get a reward. So, for surely they will work hard to do the
job and indirectly they will improved their work system. Teamwork is such a
crucial thing in any job. Therefore, the reward that will pay based on teamwork,
will affect their work performance. As the SMRT vice-president said, they have to
work collectively as a team if they want the reward. If not, they maybe get a low in
paid. So, employee can be more driven and focus on their group goal and achieve
it to get the reward.
If the employee work together as a team and achieve the KPI that given by
the company, then they automatically have achieved the company’s objective. For
example, in this case, SMRT has set up the KPI which are running bus services on
schedule and meeting safety standards. If the employees achieved the KPI, they
indirectly has achieved company’s objective which is to drive better services for
their customers. Among many benefits, team-based rewards can foster
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4.1.3 Fairness
Paying employees based on team will make each of the employees feel that
is fairness in paying distribution. The employees with the similar task and same
level of skill will be given a same amount of money as bonus if they achieve the
goals. For instance, in this case, from 70 per cent of staff bonuses is tied to KPI and
will be increased to 80 per cent with the team incentive. Hence, everyone will get
the same reward and everyone will feel fairly treated.
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6 References
Lim, A. (2016, Febrary 18). The Straits Times. Retrieved from The Straits Times:
http://www.straitstimes.com/singapore/transport/smrt-to-link-more-of-staff-
bonus-to-bus-rail-ops
6 Appendices
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