Impact of Reward Management System on Employees Performance
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impact of reward management system on employees performance
Research Aim and Objectives
The main aim of the study is to investigate the idea about the reward system and its interrelationship with the performance of the employees. In order to capture the related information in the study, there are four objectives that should be satisfied. First is to describe the essence of reward system and the methods in this kind of approach. Second is to tackle the various issues that incorporate in the reward system like the strengths and weaknesses, or benefits and drawbacks for both organization and employees. Third is to recognize the perceptions of employers and employees regarding the rewarding schemes. And fourth is to measure the effectiveness of the system in targeting the performance of the employees.
Literature Review
Based on the statistics, the long-term productivity has an impact to increase the trend in the performance in many of the industries. Through the continuous development of processes, like the application of technical system and information technologies, the employees have the potentials to enhance the productivity (BFC, 2006). The rewards or incentives are awarded for the people who showcases the productivity and quality performance during the given time and which created a significant impact in the overall performance of the organization. Rewards are used as an effective method to increase the productivity. The system creates a kind of force that can increase the effort of an employee to provide the ideal performance. This rewarding system is a motivational factor that affects the behavior of the worker but adds value to their system. Obviously, the business leaders use this approach as a best way to improve the productivity but should be apply depending on the specific situation and not placing the financial aspect of the organization at risk (Mattila, Li, & Pocock, 2007). However, when the reward system is compared to motivational approaches, it came to the point that the organization is willing to risk part of their financial support. Because in motivation, it suggests that employees performance are based on their need and sometimes based on the pressure they receive from the working environment. Often, people commit to do a certain task because they want to excel in their field and their interest and values that they place on their work. Most of the time, the actions or the practice of the employees might be the representation of the culture (Ryan and Deci, 2000).