The Employee Reward System

McGovern & Shelly (2008) state, "Reward and recognition programs serve to encourage and reinforce desired behaviors among employees. They help to create an atmosphere of appreciation and trust, contribute to job satisfaction, encourage employees to take pride in their work, and promote empowerment and involvement among employees with one another, their projects, and the company in general. Reward programs that really recognize the good work of employees create and foster employee loyalty and build self-esteem" (pp. 221). Rewards are given as a result of exceptional employee performance and are usually associated with an organizations goals, thus when an employee assists a company in achieving one of their goals, an employee will then be rewarded. The

If used efficiently, reward systems can increase employee productivity and improve work quality, thereby, having a huge impact on employee motivation and behavior.

DeSimone & Werner (2012) state that, "The organization itself can influence employee behavior through its reward structure, culture, and job design. Reward structure focuses on the types of rewards an organization uses (material, social); how rewards are distributed (e.g., equally to all, relative to each individual’s contribution, or on the basis of need); the criteria for reward distribution (results, behavior, or nonperformance issues, such as seniority or tenure) ........employees are more likely to do things for which they are rewarded. If management does not carefully design and implement a reward system, then it may unintentionally reinforce undesirable behavior in employees (such as lack of initiative, or low participation rates in Human Resource Development programs). Also, when reward systems are perceived too strongly as control mechanisms, this can serve to reduce employee motivation and performance”