impact of Rewarding on employee performance.docx

impact of Rewarding on employee performance.docx - The...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
The Impact of Rewards on Employee Performance 1
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
CHAPTER ONE INTRODUCTION 1.1 Background of study. Reward is one of the most important elements in motivating employees for contributing their best efforts to generate innovation ideas that lead to better business functionality and further improvise company performance both financially and non-financially (Dewhurst et al., 2010). The current financial crisis the world is experiencing has made the reward system, with focus on bonuses and viable remuneration, a highly debated topic in media. The mantra that is always heard is that the organization expects employees to follow the rules, regulations and also to work according to the standards set for them whereas the employees expect good working conditions, fair play, fair treatment, a secure career, power and involvement in decision making. Rewards systems are often used as a management tool for achieving desirable objectives. One of the most common purposes of reward is to motivate employees to perform better (Armstrong, 2006). In today’s business culture, employees will give their maximum when they have a feeling or trust that their efforts will be rewarded by management (Baron, 1983). Motivation is the key that gets people to do what they do. Motivation is an accumulation of different processes which influence and direct the behaviour of employees to achieve some specific goal (Baron, 1983). One of the key issues that concern every worker in an organization has to do with the reward or compensation for their effort. 2
Image of page 2
Employees not only want good pay and benefits, they also want to be valued and appreciated for their work, treated fairly, do work that is important, have advancement opportunities, and opportunities to be involved in the agency (Frey, 1997). Rewards play an important role in work unit and agency programs to attract and retain their employees. (Perry et al 2006). It is the day-to- day interactions that make employees feel that their contributions are appreciated and that they are recognized for their own unique qualities. Getting results from your reward programs means having the right reward strategy, smart design and effective execution (Srivastava, 2001). It is important to note that after recruitment, most employees subsequently expect or demand for other benefits as compensation for their time and effort towards achievement of organizational goals apart from the standard wage or salary (Miles, 2004). If the above benefits are not offered, it usually leads to various forms of dissatisfaction which may include; high absenteeism, constant grievances, high labour turnovers, strikes and as a result low performance of their due duties (Ax et al, 2006). Effective employee reward systems can significantly increase work performance. In other words we can say that good rewards are most important way to engage the employees with their work and with their organization. They can motivate employees to increase their work quality and quantity and to align their performance with organizational objectives. They can therefore be a very
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern