Reward Management

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 REWARD MANAGEMENT







What is reward management ?
The achievements and benefits received by employees for their job performance in an organization are known as rewards. Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. . the reward system  is matched with the level of performance for each job. . Reward can be considered as a benefit, facility, and career development.

Reward management is important for the following reasons:
·        acknowledge employee contributions to the company’s goals and show appreciation for their efforts
·        To motivate employees
·        increase people's willingness to work in one's company,
·         to enhance the productivity

 Purpose of Rewards
Reward system is developed to make performance more effective. If they have performed better than the standards, they are positively rewarded or positive reinforcement is exercised.
.
How to implement an effective reward management ?
To make effective reward management, an organization has to prepare an appropriate reward system. Attractive and transparent reward system must have quality to motivate and empower the dedicated and reliable employees. This will motivate employees to make their effort in achieving organizational goal.

Types of Rewards
Rewards can also be classified into financial and non-financial rewards.

·        Financial Rewards
                      wages, bonuses and profit sharing.
·        Non-financial Rewards
o   positive feedback:
o   Recognition:
o    Trust/empowerment:

Motivation theories towards reward

People work for achieving several needs fulfilled. They also value recognition and self-satisfaction. The design and operation of reward management processes and practices should start from an understanding of the implications of the psychological contract concept, motivation theory.

people work harder to be more productive. There is a saying that “people will always work harder when they know they are appreciated,”  Finally , Reward management can be considered as  developing and implementing strategies, policies and systems which help the organization to achieve its objectives by obtaining and keeping the people it needs and by increasing their motivation and commitment.


                                                                                                        By Shantha Wijesinghe

References  :
                                              

UKEssays. November 2018. The Concept And Definition Of Reward Management Essay. [online]. Available from:https://www.ukessays.com/essays/management/the-concept-and-definition-of-reward-management-essay.php

 Wikipedia (2020), Reward management
 https://en.wikipedia.org/wiki/Reward_management

Comments

  1. Zia-Ul-Haq Hayathu MohamedApril 12, 2020 at 7:59 PM

    Mr.Shantha extra knowledge gained from your reward management blog and "how to implement an effective reward management" is good.

    ReplyDelete
  2. MBA 2020April 12, 2020 at 10:59 PM

    Dear Shantha, your subject is acceptable in the present pandemic situation and i learnt some useful ideas from your blog.

    ReplyDelete

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