Effective Reward Management is Critical to Organizational Performance

Reward, whether it is financial (in terms of a monetary bonus) or simply praise and the recognition of success, will positively impact levels of motivation within a team. For example, a sales team working towards a target, that if achieved will mean a financial bonus will be more motivated than a team without this incentive, especially if a high percentage of that team have money as a primary motivating factor. The effect of praise and recognition on staff will be a team that feels valued and appreciated by its organisation. This will help promote harmony and make for a stronger, healthier and a more motivated team. A team that is not praised and recognised will soon start to feel that their hard work is not appreciated.

In today’s rapidly changing business environment, the ability to transform obstacles into opportunities can be a firm’s biggest advantage (Samašonok & Leškienė, 2015). As organizations recognize the need to be adaptable, creativity in the workplace has become one of the most important determinants of performance and success (Anderson, Potočnik & Zhou, 2014). To date, even though creativity has been linked to firm performance and survival (Nystrom, 1990), many managers admit that employees have “room to improve” in terms of creativity (Shalley, 2004).

Employees are motivated by both intrinsic and extrinsic rewards. In order for the reward system to be effective, it must encompass both sources of motivation. Studies have found that among employees surveyed, money was not the most important motivator, and in some instances managers have found money to have a de-motivating or negative effect on employees.  This research paper addresses the definition of rewards in the work environment context, the importance of rewarding employees for their job performance, motivators to employee performance such as extrinsic and intrinsic rewards, Herzberg’s two-factor theory in relation to rewarding employees, Hackman and Oldman model of job enrichment that

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.

that employees remain motivated if they are rewarded to achieve goals of a company. And when they are

Enhancing creativity in the workplace is not just for artists, writers, musicians, and designers anymore. Creativity and innovation are critical factors for a company’s success in today’s intensely competitive business environment. In order to compete in this environment, a company must create a culture of innovation in which every employee is encouraged and empowered to innovate – whether it’s in processes, products, or services (Bayt.com, 2014). Innovation is everyone’s job.

Based from the title is shown that if managers want to get the best performance from their staff, they need to reward their staff intrinsically. From the research that has been taken part in this topic, intrinsic rewards are one of the methods that can be used to motivate your staff means that the staffs are motivated by rewards that are largely intangible. This means if we are the staff, we place more value on outcomes that are sourced from within ourselves, rather than from external factors. It is also can be linked to our feelings. Such as, feeling satisfied and capable, enjoying a sense of challenge, re-enforcing self-esteem, satisfaction at accomplishments,

Through my own personal experience, rewards are certainly a motivator of performance. I went from being rewarded for my performance through bonuses and annual merit increases, to being rewarded by the same variable pay program through the use of merit increases and an intrinsic reward system. Four years ago my organization was providing its top performers with decent pay including bonuses, annual merit increases, and job enlargement. However in the past three years my previous employer, a private for-profit higher education institution, went bankrupt and sold the company and most of their holdings to a private non-profit higher education institution. Leading up to the sale of the company, the previous employer informed us that they could no longer provide merit increases until there was improved performance from the employees. This was unacceptable for most of us in lower paying roles, however, they wanted us to work on employee motivation can

Add to that the global marketplace setting and economy to see that this is not an easy task for managers to pull off. In a peer-reviewed journal article by experts Aguinis, Joo, and Gottfredson entitled, “What Monetary Rewards Can And Cannot Do: How To Show Employees The Money,” a general discourse explains the pros and cons of monetary rewards while giving their best thoughts on how to improve employee performance. Also in terms of employee rewards other related issued are discussed such as timeliness, balance of monetary and non-monetary incentives, precise measurements of performance and provision of offering guidelines for management to implement. All in all each business is individualized and should match a sensitivity to understanding employees' unique expressions, feelings, and talents and reward accordingly.

The purpose of this paper is to highlight the best practices followed by HRM and to acknowledge the importance of compensation and benefit strategies used in organizations all around the world. Compensation and Benefits are used by different organisations globally to attract, motivate and retain their employees. This paper contains a case studies, summary and analysis of academic journals and books to understand the latest trends in compensation and benefits field. The three primary components which are used in designing a strategic compensation plan are listed. During the course of the paper, it discusses how the compensation and benefit strategies can be tailor-made for the different generations joining the workforce,

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

This qualitative study was conducted through a serious of thirty two questions. The content of the questions used in this study were introductory questions to get background information on the employee’s, whether or not employees were happy with the way financial rewards are calculated and disbursed, also if employees felt non financial rewards are more important than financial rewards. Other topics that are questioned are: motivations for working, equity, different perceptions on job satisfaction, if environment has an impact on job satisfaction, and rewards in management control in order to retain employees within the company (Galanou et al., 2010).