Individual versus Team Based Reward Systems

Abstract: Research Question: In the light of choosing between individual, group or simultaneous reward systems; how do organizations argue for their chosen reward system? Swedish organizations have during the past decades had a strong tendency towards rewarding collectively. This has its routs in that the Swedish federations of labour unions have had a penetrating power in most sectors of Swedish commercial and industrial life. Central agreements and solidarity has been a part of the Swedish working life for a long time. On the contrary America has during the past decades had a clearly defined direction towards rewarding on an individual level and having well developed bonus-programs for the management of the organization. In the introduction the organizations difficulties with choosing between rewarding individuals or groups is described. In the methodology the approach to solving the research question is described. The selection procedure for the interviewed organizations is presented and also a short description of their actual reward system and the interviewees. In the theoretical framework data on individual as well as group based rewards and the advantages and disadvantages that arise from these is presented. Existing motivational theories and theories on the relationship between employer and employee are also presented as these are tightly connected to the subject on reward systems. In the empirical study the different organizations thoughts on how to reward employees is presented. Thereafter future possibilities to how the organizations feel that they can create an even more efficient reward system are presented. In the analysis the theoretical framework and the empirical studies are intertwined. The theories are strengthened with what has been said in the empirical studies. In the conclusion we will answer the research question and from this draw possible conclusions and propose recommendations.