Objective of Rewards Management..
Reward management deals with processes, policies and strategies which are required to guarantee that the contribution of employees to the business is recognized by all means. Objective of reward management is to reward employees fairly, equitably and consistently in correlation to the value of these individuals to the organization. Reward systems exist in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility.
Kerr (1995) brings to attention how Reward Management is an easily understandable concept in theory, but how its practical application results often difficult. The author, in fact, points up how frequently the company creates a Reward System hoping to reward a specific behavior, but ending up rewarding another one. The example made is the one of a company giving an annual merit increase to all its employees, differentiating just between an "outstanding" (+5%), "above average" (+4%) and "negligent" (+3%) workers. Because the difference between the percentage increasing was so slight, what the company obtained from the employees was indifference to the extra percentage point for a superlative job or the loss of one point for an irresponsible behavior. In the following table other common management errors are summarized.
The History
Reward management is a popular management topic. Reward management was developed on the basis of psychologists' behavioral research. Psychologists started studying behavior in the early 1900s one of the first psychologists to study behavior was Sigmund Freud and his work was called the Psychoanalytic Theory. Many other behavioral psychologists improved and added onto his work. With the improvements in the behavioral research and theories, psychologists started looking at how people reacted to rewards and what motivated them to do what they were doing, and as a result of this, psychologists started creating motivational theories, which is very closely affiliated with reward management.
Defining motivation as "the degree to which an individual wants and choose to engage in certain specific behaviours", to which Vroom (quoted in Mitchell, 1982) adds that performance = ability x motivation. To have an efficient Reward System then, is mandatory that employees know exactly what their task is, have the skills to do it, have the necessary motivation and work in an environment allowing the transformation of intended actions into an actual behaviour. From the company point of view instead, an effective performance appraisal has to be present, in order to let motivation be a major contributor to the rewarded performance.
References
Tripathi, K., & Agrawal, M. (2014). Competency Based Management in Organizational Context:A Literature Review. Global Journal of Finance and Management. Vol.6,No.4, 349-356.
Tremblay et al., (2010). “The needs and expectations of generation Y nurses in the workplace”. Journal of Nurses in Staff Development, Vol. 26, No. 1, 2 –8.
Wang, Y. (2014). Observations on the Organizational Commitment of Chinese Employees: Comparative Studies of State-Owned Enterprises and Foreign-Invested Enterprises. The International Journal of Human Resource Management,Vol.15,No.4, 649–664.
What types of rewards and recognition does your organisation offer?
ReplyDeleteAs a motivation factor, financial rewards are the common way of rewarding employees. What are the other non-financial rewards in addition to the recognition, training, development, increase in job responsibilities.?
ReplyDeleteGreat insight! What distinguishes Employee motivation from Reward management is that even though an employee is engaged in something but not absorbed in it, because he or she is feeling a sense of "have to". However, engagement is an emotional commitment. It considered the things that motivate us to be engaged or disengaged. Managers can spark Intrinsic Motivation in anyone – and in the process, create an Engaged Employee
ReplyDeleteThere are two types of rewards such as tangible and intangible. Tangible rewards are money, vacations, and material objects. Intangible rewards can be things such as prizes, plaques, and awards given at annual celebrations for exceptional performance.
ReplyDeleteWonderful blog! Appreciation is a simple gesture or praise that can boost employee morale and motivate them. 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.
ReplyDelete