Reward Management
Reward Management
Introduction
Armstrong (2007) reward employees in a reasonable and consistent manner based on employees value to the organization to further achieve the organization's strategic goals. According to (Manus et al, 2003), total rewards include all types of rewards-indirect, direct, internal and external. Every aspect of the reward, namely the basic salary or contingent compensation, employee benefits and non-financial rewards are linked together. Ex INGO’s pay 13th month salary as bonus. According to Thompson, (2002) career opportunities, learning and development, the internal motivation provided by the work itself and the quality of work life provided by the organization.
The significance of total reward
Rewards can create a work experience that meets the needs of employees by formulating agreements to solve a wide range of problems, and by rewarding them with the most effective ways for resolving employees’ changing values, and encourages them to make more efforts (O’Neal,1998). Pfeffer (1998b) stated that creating an interesting, challenging and empowering work environment that enables individuals to use their abilities to do meaningful work and show appreciation for them may be a more positive way to enhance motivation and performance although creating such an environment may be much more difficult than simply turning the reward lever, it takes more time.
The Benefits of Reward Management
Greater impact: rewards and recognition for outstanding work performance can affect employee morale and job satisfaction. According to social communication theory, employees are obliged to respond with a higher level of participation after receiving rewards and recognition from the organization (Swapna, 2019). Ex: AIA Insurance, work with the best, employee will work alongside respected industry leaders and managers who will guide and develop the employee on shared path to success.
Enhancing the employment relationship : Employment relationships established through complete reward methods will maximize the use of relationships and transactional rewards, therefore will be more attractive to individuals (Armstrong, 2009). Ex: Google allows employees to set quarterly goals. Goals must be difficult and measurable. These goals set by employees have produced Google tools. These include the new search engine and Gmail (as searchable email). Employees put forward some ideas, these ideas have changed the face of Google (swipeclock.com, 2020)
Flexibility to meet individual needs: as pointed out by (Milkovich et al,1998) relationship rewards can make individuals more firmly secured to the organization, because they can answer those special personal needs. Ex: Dell formalized its flexibility policy to provide a support structure for all employees — saving $12 million annually in the process , no surprise that Dell, a major computer company, embraced technology wholeheartedly when it began building its flexible work culture in 2009 (business.linkedin.com).
Talent management: The talent life cycle is the way most people interact with organizations. Talent management is the management method of talent life cycle. The life cycle management level will determine the level of effectiveness of these talent investments (Schiemann, 2013).
Source W.A. Schiemann /Journal of World Business (2013)
The reward system
The main components are financial and non-financial rewards, which combine to form a total reward system. Performance management plays an important role in supporting non-financial rewards and can be used to inform performance or payment decisions. All these components collectively affect the performance level (Armstrong. 2014).
Figure :1:2
Source : (Armstrong , 2014)
List of reference
HUMAN RESOURCE MANAGEMENT PRACTICEArmstrong, M., 2007. A Handbook Of Employee Reward Management And Practice. 2nd ed. London: Kogan Page.
Armstrong, M., 2009. Armstrong's Handbook Of Reward Management Practice. London: Kogan Page.
Bloom, M. and Milkovich, G.T., 1998. Relationships among risk, incentive pay, and commitment. Journal of Vocational Behavior,
Manus, T M and Graham, M D (2003) Creating a Total Rewards Strategy, American Management Association, New York
O’Neal, S (1998) The phenomenon of total rewards, ACA Journal, 7
Pfeffer, J (1998b) Six dangerous myths about pay, Harvard Business Review, May/June
Schiemann, W.A., 2014. From talent management to talent optimization. Journal of World Business,
Swapna, P., 2019. Reward and Recognition Impact on Job Satisfaction and Performance in retail sector: an Empirical Study from Andhra and Telangana. JOURNAL OF MECHANICS OF CONTINUA AND MATHEMATICAL SCIENCES, 14(5).
Thompson, P (2002) Total Reward, CIPD, London
Hi Faiz, Adding more to your points. Research report by (Ali and Ahmed, 2009), Describes that rewards and recognition directly affect the performance of employees. Organizations should implement promotion, increment of salaries, bonus and appreciation method to retain high performance employees.
ReplyDeleteHi Ijaz. Agreed with the content. Brad (2017) says engaged employees are typically the employees who are motivated intrinsically. The author also believes employee motivation and engagement cannot be attained without the other. Shawn (2016) adds more value and makes it simple to understand by explaining that the employees show a general percentage of engagement towards their job not because they are emotionally willing but are liable to be bound with the job. The reason “Why” is determined by the motivation, which can comprise Intrinsic or extrinsic motivators, depending on the individual psychology. “What” it provides is the perfectly applied engagement that arouses emotionally, representing an enhanced performance.
ReplyDeletehi ijaz, agree with you adding to your points, Job and task design, Recruitment, Selection, Training, Compensation, Performance management and Career development. will affect employees’ level of engagements (Vance, 2006).
ReplyDeleteHi Ijaz, adding some points, appropriate, effective and timely reward increases employees and managers' motivation also researches and experience regarding the concept of performance reinforcement have proved that effective and timely feedback can be regarded as a motivation to increase employees' productivity and spirit (Amin K., Hossein R. and Saeed R. 2013)
ReplyDeleteWonderful blog! Appreciation is a simple gesture or praise that can boost employee morale. Especially, in the remote workplace, the need for recognition grows even more crucial. We bring virtual rewards and recognition ideas to engage remote employees in recognition activities at the workplace.
ReplyDeleteAgreeing with your detailed lined up , Reward management system influences performance by recognizing and rewarding good performance and by providing incentives to improve it(Armstrong,2014).
ReplyDeleteAgreed with the comments, According to Spiegel (2020) there will be greater employee engagement that will lead to increase in employee retention and create positivity in the workplace when the employees are rewarded and recognized appropriate way.
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