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RUNNING HEAD LAW AND INTERNATIONAL LAW
Reward Management
Name of the writer
Name of the institution
Reward Management
Introduction
In the modern world, every organisation is facing tough competition for enhancing competitiveness and the well-being of the employees. Virtually every organisation has a performance management system which aligns with human capital management in order to accomplish a number of important objectives. The development of Human Resource Management practices is effective in order to motivate individuals and their collective skills and abilities to ensure high productivity and greater performance. The objective of the reward practices in an organisation is to motivate performance, help individuals to develop their skills, and reward individuals on the basis of effective performance. In the era of organizational competitiveness, businesses need to take care of their assets along with the employees. When it comes to employees, organizations need to take care of them by fulfilling their financial and non-financial needs. Compensating employees for their hard work and efforts usually satisfy them to work with even more pace by managing the quality. It is notable to mention that when organizations fail to do so, the staff turnover rate increases which are catastrophic for the organization. Majority of the organisations are working hard and spending money to increase the productivity of their employees. However, if the leaders of those organizations do not know how to appreciate and reward the efforts of their employees, then the investment of money in the productivity of employees is useless. Reward management is an effective method to implement strategies in order to reward people in the organization in accordance with their value to the organization. Reward management deals with the reward processes, practices, and procedures in order to meet the goals and objectives of the stakeholders and organisation. Here, the focus is to determine the effectiveness of reward practices for Organization X in order to enhance the performance of employees.
Discussion
In the field of Human Resource Management and industrial psychology, reward management practices have merged as a critical topic. The reward management practices within organizations are responsible to increase the productivity of employees by rewarding them on the basis of their task they perform in the organization. It is notable to mention that motivated employees are required to keep an organization alive therefore reward management practices are vital to motivating employees. Many researchers have found that rewarding employees on the basis of their performance help in increasing their productivity. It is important to note that human resource management often introduces reward management practices in order to increase customer satisfaction. There is a number of reward management practices such as labour cost control, legal compliance, compensation system, and perceived fairness towards employees help in increasing the productivity of employees (Dhani, Chandra, Tripathi, 2018). The studies have shown that pay is directly related to productivity.
Reward management is one of the best practices of human resource management to develop skills and abilities in employees so they can show satisfactory performance. This practice of human resource management helps in increasing motivation and enhancing employee retention. Another purpose of this reward management practice is to encourage non-performers to leave the organization. It is noteworthy to mention that in the modern era, the economy is moving towards the service sector. It is well-known that banks play a pivotal role, but financial institutions are the backbone of any economy. The business organisations are discovering new ways to motivate their employees due to the instability caused by the globalization pattern. The human resource management practices are only way out for an organization to generate sustainable competitive advantage (Noe et al., 2017). The human resource management practices regarding employees motivation are becoming more and more critical for the survival of an organization. The organization X needs to introduce an effective system to motivate employees.
Reward Practices
More and more companies are focusing to identify various compensation strategies in order to improve the performance of an organization as these compensation strategies are linked with employees motivation. The researchers have found that it is critical to integrate reward system in the organization system of performance. The traditional employees incentives associated with the longevity and position has now been changed by the performance of an individual. The studies have shown that rewards are commonly based on customer satisfaction and market share. Majority of the researchers are agreed that a crafted rewards system is effective to improve the overall performance of an organization by rewarding the employee that is showing efficient performance. However, some researchers disagree the incentives inspire performance. Bob Nelson in his famous book 1001 Ways to Reward Employees argues that there should a positive impact on the performance of employees with the help of rewards. If a reward is unable to improve the performance of an employee, then it is a waste of time and money. It is evident that verbal appreciation or praise by the leader is one of the most effective rewards that encourage an individual to work hard in order to show better performance. The rewards must focus on the performance of an individual. Nelson also concludes that certificates of appreciation, giving stock or stock option, or even personal thank you notes are effective ways to improve the performance of employees which in turn improve the overall performance of an organization. The human resource management is already focusing to integrate strategies in the organization that may help in the growth of the team based rewards. However, there is an immense need to integrate individual rewards in the organization as well as they align with employee and company performance. The individual rewards are still important as they can make a difference to the firm. In the modern era of technological development and globalization, many organisations are working strategically designed reward systems for top business performance. The performance of employees and company can be aligned with the help of strategically designed recognition and reward system.
There is a number of rewards, but two of them are most effective that can motivate individuals to work hard including intrinsic rewards and extrinsic rewards. Intrinsic motivation exists within the individual in order to achieve certain goals. Intrinsic rewards are a sense of internal satisfaction that a person has completed an expected target. It is the responsibility of employers to help employees with their intrinsic motivation by providing opportunities for employees so they can show their abilities and make choices by a high level of self-sufficiency (Dhani, Chandra, Tripathi, 2018). On the other hand, extrinsic rewards are based on tangible things. Supervisors or leaders provide an individual with an extrinsic reward based on his/her performance in the organisation. It is notable to mention that extrinsic rewards are financial in nature. These rewards can be paid time off, increment in salary or a bonus for reaching some quota. The extrinsic rewards encourage an individual to perform well in the organization in order to attain better outcomes. It is notable to mention that certain theories of motivation are in place to motivate employees to perform well in the organization. The incentive theory focuses on goals. It is human nature that a person attempts to reach a goal when it is present.
Philosophy of Reward Management
It is important to mention that reward management is based on well-articulated philosophy such as its guiding principles are helpful to enact the values of the organizations. The philosophy of reward management includes beliefs such as fairness, equity, transparency, and consistency in the practices of human resource management to operate a reward system. It is notable to mention that if HRM is investing in human capital, then there must be proper return. The reward management addresses long term issues that how people will react and performance when they will be given with proper reward in accordance with their performance. Business strategies must follow the processes of reward strategies. A total reward approach is adopted by the reward management to emphasize various aspects of rewards as a coherent whole. The basic purpose of reward management is to achieve the motivation, engagement, commitment, and development of employees. There is an immense need for organization X to integrate the practices of reward management with their human resource management practices in order to achieve the goals and objectives of the organization in an effective manner. It is noteworthy to mention that reward management is one of the most important technique to manage people in the organization along with their performance. It is evident that reward management is a vital part of human resource management practices, but the practices and policies of the HRM can affect the business of the organization. The top management, the internal and external environment are linked with the reward management and they can affect an organization and its policies. The human resource management is working on the basis of Efficiency wage theory that signifies that more compensation to the employees helps in increasing the productivity of the employees.
Reward and Employees Motivation
The development and success of an organization are dependent on the motivation of its employees. It is the core responsibility of human resource management to identify what motivates the employees of Organization X as it will be beneficial to maximize their overall performance. Organization X is comprised of various people from different background, so it will be hard for the organization to find out what motivates their employees. It is noteworthy to mention that a well-developed reward system can be useful to increase employee work motivation. There is an immense need for an effective reward system in the organization and that system must need to cope with the reward philosophy of the organization. However, it is difficult for the organization to develop reward policies in accordance with the companys interest along with the employees contribution. The reward system should be effective so that it can retain the high performance in an organization. The organizations are highly dependent on the employees work motivation, therefore, it is vital for an organization to plan a suitable reward system in order to gain better outcomes for employees (Ingram et al., 2015, pp.255). Employees work motivation and satisfaction can be boosted up with the right combination of immaterial and material rewards. It is also important to enhance the commitment of employees to the company. The organization runs more effectively and efficiently when employees are motivated and satisfied with the policies and compensation of organizations. A motivated workforce is a vital aspect of the success of the organization. On the other hand, an unmotivated workforce has the tendency to disrupt the whole organization in order to attain the goals and objectives of that organization. It is important for employers to understand the effectiveness of the reward system and policies as it is useful to meet the objectives of an organization. It is notable to mention that rewards are a positive outcome that is earned on the basis of the efficacy of employees. A reward often follows whenever an employee makes a significant effort to achieve the objectives of an organization.
Organizations use efficiency wage theory to place themselves in a better position in the market as it helps to motivate employees which leads towards higher productivity. It must be taken into consideration that reward policies address various broad issues achieving equal pay, the role of line managers, market stance, the approach to the total reward, and the importance of internal equity and external competitiveness. The concept of the total reward is totally based on reward management. Total reward includes all kind of rewards such as employee benefits, contingent pay, base pay, and non-financial rewards. The implementation of total reward in the organization is beneficial to improve the performance of employees and to motivate them to increase the productivity which improves the overall performance of the organization. The effective way to enhance the motivation and performance of an individual in the establishment of fun, challenging, and empowered work environment that helps in the identification of employees skills and abilities and encourage them to work in an effective way. The appreciation is likely to be a more certain way to enhance the performance of individuals by motivating them. It is found that the benefits of a total reward approach are far more than its drawbacks. The deeper and long-lasting impact has been created with the combination of all kind of rewards which will be useful in increasing the motivation and commitment of the employees. The total rewards promote a positive environment in the organization as employees will get aware that their slightest efforts can get them a reward. The total reward system provides flexibility for employees to meet individual needs. The use of total reward technique will allow individuals to perform well in the organization as it answers the individuals needs. It is noteworthy to mention that the total reward technique helps in engaging the employment relationship. With the help of proper reward system, employees will understand that their efforts and performance is meaningful. Therefore, they tend to work with more efficiency and try their best to achieve better results in order to attain more rewards. It will help in enhancing the performance of the organization.
Developing a proper reward system helps an organization to develop a sense of purpose and direction to compensate employees on the basis of their performance. The reward strategies are linked with the needs of the organizations and their employees. The organization needs to develop reward policies in accordance with the policies and procedures of an organization. There is a strong need to attract, retain, and motivate employees with the help of proper rewards so that the organization can prosper and excel its business. The organization needs to maintain competitive rates of pay in order to encourage their employees to perform better. The human resource management needs to implement the practices of total reward approach to reward their employees on the basis of their performance. The rewards and bonus must be in accordance with the contribution of employees. Slabs in the reward scheme will help to effectively compensation individual on the basis of their contribution. The researchers have found that the reward system helps in recognizing the value of each individual who is showing effective performance and making a contribution to increasing the overall performance of the organization. Human resource management needs to understand the value of reward management in the organization and its effect on the overall performance of the organization. People must be rewarded for the values they create. There is an urgent need to develop commitment and engagement in order to achieve an appropriate balance between financial and non-financial rewards. Regular expression of appreciation by managers and leaders is important for employees motivation. It is the core responsibility of managers and leaders to communicate with the employees in an effective manner as it will help them to understand the concerns and issues of employees.
The lack of proper communication in the organization mostly discourages people to share their concerns. If human resource management wants to increase the overall performance of the organization then they must positive communication strategies in the organization. It is notable to mention that finding a motivational reward for employees is a hard thing. However, with the implementation of effective communication in the organizations, managers and leaders will come to know about the interest of employees. By knowing the interest of people, leaders can decide what reward scheme is effective for employees. The effective communication technique will help an organization to express appreciation to the employee in an effective manner. Many researchers have found that individual rewards and total rewards may have a significant time lag. They suggest that simple rewards such as regular expression have a profound impact on the behaviour of the employee as it helps to provide them with positive immediate feedback. It is vital for the organisation to consider the importance of the entire system of reward management and apply it according to the actual needs of the organisation. It is worthy to mention that the idea of workers performance is closely linked with the overall reward structure adopted by the organisation. Different programs established by the organisations to enhance the idea of a reward system for the workers helps to align their work domains with the overall standard of productivity set by the higher management of the organisation. Establishment of proper reward management and execution of specific reward program make it easy for the organisations to achieve their targets of the higher performance level of workers. The main idea of reward management makes it essential to recognise and appreciate the professional performance level of the workers. The broad spectrum of reward management has appeared in the significant forms of workplace dynamic and the proper motivation for the workers to improve their performance level and increase their overall productivity.
Development of proper reward management program assists organisations to recognise the actual worth of the workers performance and how they play a positive role in the overall procedure of target execution. Increasing form of a sense of appreciation ultimately motivates workers to work hard and achieve performance targets effectively and efficiently. Upper management plays a critical role in the entire scenario by motivating workers to align their performance level with the entire organisational performance. Proper and practical consideration of the procedure of reward management can also be effective for the organisation to attain a better form of the loyalty of its workers. An initiative of offering different rewards for employees helps to remain stick with the organisation and provide their services to meet short-term and long-term organisational goals and standards. When workers have the necessary realisation of their value in the workplace than it eventually encourages them to work better and perform their tasks according to the requirements set by the higher authorities of the organisation.
Conclusion
To conclude the discussion about the consideration and development of reward management in the workplace setting. The overall idea of reward management is effective to build a strong connection between workers and the management of the organisation. Quality improvement is one of the key objectives for the organisation that is only possible with the exploration and execution of improved ideas about rewards and different compensations for workers according to their improved performance.
References
Chaubey, Dhani, Chandra, Ajita Durgeshmani Tripathi, Dr. (2018). Reward Management Practices and Its Impact on Employees Motivation An Evidence From Some Service Organizations In Lucknow. International Journal of Research in Computer Application Management. 8.
Ingram, T.N., LaForge, R.W., Schwepker, C.H. and Williams, M.R., 2015. Motivation and Reward System Management. InSales Management(pp. 251-280). Routledge.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017.Human resource management Gaining a competitive advantage. New York, NY McGraw-Hill Education.
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