Importance Of Reward Management

Job evaluations analyze the performance of an individual in the workplace. Typically, evaluations distribute more credit to jobs that demand a higher level of effort and responsibility. Job status rewards contribute to employee motivation in the workplace. A major function of leaders is to support the motivation of associates. Constructive feedback should be given when leaders are encouraging motivation.

Introduction: Evidence suggests that peoples’ actions are often governed by self-interest. “The self-interest motive is singularly powerful, according to many of the most influential theories of human behavior and laypersons alike (Miller, 1999, p. 1)”. Consequently an effective and responsible manager uses rewards and punishment as a means to improve efficiency of employees and productivity of the company. Whether self-interest alone is responsible for human motivation is a debatable issue and a manager must take this factor into account. Factors other than rewards and punishment also affect motivation.

The Role of Reward Systems: Organizations use reward systems to emphasize on which parameters their employees should exert the extra effort on by including them in their reward program. This is a good way to emphasize and convince the employees of which performance areas that are important and create goal congruence within the organization and signals how the employees should direct their efforts. To motivate is the second control benefit. People sometimes need an incentive to perform tasks well and work hard. Last but not least we have the personnel related control benefit.

Motivation is what gets tasks done, and improves companies around the world. Motivation can come from physiological needs, safety needs, social needs, esteem needs, or self-actualization needs. To be a successful manager, we must recognize the different needs that are important to each employee then design jobs that address those needs to maximize motivation as well as results. However,

Nowadays increasing employee motivation, commitment and engagement levels are key organizational aspects. The development of compensation policies has an important role in motivating employee to deliver good levels of performance, contribution and effort. Usually the process of motivation starts with someone recognizing an unsatisfied need. Then a goal is established to be reached to satisfy the need. Rewards and incentives can be established for employee to better accomplish the company goal.

The purpose of this paper is to evaluate how employee motivation can be developed when employees are tightly controlled by management. In an organisation employees are the key resources of the firm’s success, thus organisations need to motivate employees in order to expect better performance and efficiency. Employee’s who are motivated in the organisation work harder, perform efficiently, produce higher quality of quantities and engage in more activities in the organisation. Motivation is a concept when organisations encourage and influence it’s employees to perform better which results to rewards either intrinsic or extrinsic. Motivation not only focuses on behaviour and the performance of the employee, but also on the attitudes that influence them due to the choice of actions (Hutchinson 2013).

The level of competition in the corporate world has prompted firms to embrace motivation strategies to encourage their employees with an aim of ensuring that quality services are offered to consumers. To attain this, firms have been prompted to initiate mechanisms that make their workplace desirable so that employees may be motivated to work efficiently and apply their skills optimally. Unlike past days when most firms regarded employees as just part of the inputs required in the production process of goods and services, it is now apparent that they are valued as the human capital without which an organization cannot attain its goals. There are a number of theories that have been used to explain the need for employee recognition and engagement, for instance: equity theory, two factor theory, expectancy valence theory and need hierarchy theory. Motivation of employees should be the primary focus for managers by offering: equity, support to employee aspirations and goals, good remuneration, and skill enhancement through continuous training.

All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve the situation may board on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). A major problem to address is how to keep the motivation level high in a company when the employees do not feel appreciated. The Equity Theory touches on the effects these situations have on the employee’s motivational level.

This plan could satisfy more needs than the short term incentives, namely physiological needs, safety needs, and esteem needs. By receiving these rewards means that those managers have achieved challenging targets, hence they gain respect from their subsidiaries, colleagues and even their bosses. Therefore, an effectively motivated rewards should include non-monetary incentives, such as autonomy, recognition or promotion, together with monetary rewards to fulfill individual needs. In conclusion, monetary incentives are indispensable in every organisations. They emphasize the desired results and motivate employees to achieve certain targets.

Today businesses believe that the sustaining of performance and competitive advantage to becoming a great organization. As an organization’s success depends on their employees’ performance, the value of specific individual employee has played an important role within an organization to be competitive. At that time, the value of each and individual employee and their satisfaction with their jobs are one of the key factors for an organization and organizations need to find ways to improve employee job satisfaction to achieve organizational goals. Improving employee job satisfaction brings along additional benefits such as a direct impact on increase customers’ satisfaction and employees’ work performance. Satisfied employees tend to add extra effort to job performance, then work harder and better.