1). Team performance appraisals shift the manager's focus from individual incentive systems to "group incentive plans," thus rewarding teams for working effectively together (Milkovich & Newman, 2004, p. 7). Team performance appraisals at Kudler would be conducted to appropriate departments by tailoring the appraisal to each department's performance needs. Evaluating the cashier and bagger team, for example, the manager could include a rating of each employee's effort to help speed the line, even if that means working in a different capacity. Cashiers that bag groceries for other cashiers when their own line is empty and baggers that help direct shoppers to empty lines, for example, improve the effectiveness of the whole team, so the team should be encouraged to help each other and rewarded accordingly when they perform well as a team.
Employees respond well to both monetary and nonmonetary awards. A study of private sector awards found that although employers spent less on nonmonetary than cash awards, "the awards held approximately the same perceived value" to employees and achieved approximately the same level of performance improvement ("Benefits of Using Nonmonetary Awards," 1995). Nonmonetary awards can take the form of a memento honoring employee achievement, a trophy for good work ("Benefits of Using Nonmonetary Awards," 1995), or privileges such as a better parking space, discretionary time off, or the flexibility to work a different schedule. The important thing is that employees connect the privilege or reward with their performance achievement so that they have an incentive to perform well. The relationship between the monetary and nonmonetary awards must be balanced, however, to avoid ma