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Handbook of Management Scales/Reward system

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Reward system (composite reliability = 0.87)

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Description

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The authors follow a two-phased approach to develop multi-item scales that measure dimensions of service orientation in the context of business-to-business e-commerce. Service orientation was conceptualized as a third-order construct comprised of five combinative service competency bundles: service climate; market focus; process management; human resource policy; and metrics and standards.

One of these five second-order dimensions, human resource policy, consists of two first-order dimensions: human capital and reward system.

Definition

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The extent to which a company has a reward system in place to reward employees on the basis of their performance.

Items

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  • Our employees are rewarded on the basis of how well they perform on non-financial measures (e.g. customer satisfaction) as well as financial measures. (0.76)
  • We reward our employees based on customer loyalty metrics. (0.75)
  • For our employees, recognition is based on exceeding both internal and external service expectations. (0.80)
  • Evaluation and reward of most managers is linked to service performance. (0.85)

Source

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Comments

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The first and second items were dropped due to low regression weight (or lower than remaining items).

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