Effective Reward Management is Critical to Organizational Performance

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Effective reward management is critical to organisational performance Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to organisational performance as it helps in enhancing operational efficacy and in turn production output. Allen, Takeda, White, & Helms (2004) state that reward practices play an important role in motivating employees and some reward practices are more effective than others in influencing performance. Most researchers agree that reward practices logically serve as motivators in shaping the behavior of employees and motivating them to perform at higher levels, and the use of proper rewards can culminate in improved firm performance at the organisational level. Consequently, they also add that that it is important for managers and human resource professionals to carefully consider national cultural values when designing a rewards system to fit their organisations as some reward practices may be universally effective regardless of culture, whereas others may be culturally sensitive. They accentuate the importance of managers’ selecting reward practices both associated with superior organisational perf... ... middle of paper ... ...(2006). TOTAL REWARDS: GOOD FIT FOR TECH WORKERS. Research Technology Management, 49(5), 27-35. Retrieved from EBSCOhost. Esteves, T., & Caetano, A. (2010). Human Resource Management Practices and Organizational Results. Proceedings of the European Conference on Intellectual Capital, 239-248. Retrieved from EBSCOhost. Donovan, K. (2008). Instant reward licked. Employee Benefits, 39-40. Retrieved from EBSCOhost. Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy & Practice, 11(4), 111-121. Retrieved from EBSCOhost. Utilitarianism or romanticism: the effect of rewards on employees’ innovative behaviour Zingheim, P. K., & Schuster, J. R. (2006). Career Directions for Total Rewards Professionals. Compensation & Benefits Review, 38(3), 18-23. doi:10.1177/0886368706288206

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