Importance Of Reward Management

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Reward management within a business organization is benefecial to both the employees and the organization itself as it is the key to motivate the employees to worker harder and feel more comitted to the reach the strategic goals and increase productivity. This essay explains why reward management is accompanied by tension and paradox.

Hendry (1994) define reward stragey as an important element in the stragtegic approach to HRM for different reasons. Firstly, it is the basic mechanism by which employers aim to elicit effort and performance. Secondly, the actual payment system may demand adjustment to develop motivation. Thirdly, it is frequently the fundamental part of the employer’s financial strategy . The efficiency of any organization is related to the level of payments and benefits that the organization offer, it literaly affects the relationships at work. Thus, the firms need to develop pay systems that are convenient for them , that provide value for money and that reward employees fairly according to the work they perform to avoid inequity and conflict. Reward management includes a set of tensions and paradoxes. For employers , reward is considered as a cost but to the employees , it is seen as their only source of
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In other words, it is an internal satisfaction a person recieves when performing a task. There are various forms of intrinsic rewards such as sense of achievement, recognition, words of praise from the seniors and so on. In the opposite extrinsic rewards are the ones that are physical and come rom an external source « the employer » it is directly related to job performance as well but it is essential that the workers accomplish the tasks to recieve rewards, it depends on the policy of the company. Bonus or comission, promotion, profit sharing, improved working conditions are examples of extrinsic
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