Essay About Organization’S Reward System And Role Of Reward System

Critical Thinking of “an Organization’s Reward System Can Assist Organizational Success”
MAN 4222M Msc Human Resources Management SCHOOL OF ManagementUNIVERSITY OF BRADFORD   Critical thinking of “An organization’s reward system can assist organizational success”     UB: 130XXXX1Tutor: Professor Tony RoyleAcademic Year: 2014-2015Date 05/12/2014   Table of contentIntroduction        1. The role of reward system in an organization        2. How to process a reward system        3. Drawbacks of unreasonable reward system        Conclusion        Reference        Introduction The purpose of this essay is to examine the statement whether an organization reward system can assist organizations to be successful. As we all know, the aim of reward systems is to motivate employees and make more profits for organizations, however not all organizations have the same reward system and it is always flexible, mangers should adjust the reward system with organization’s development. Therefore that statement is not entirely correct, not all the reward systems can help companies to success. According to different situation, standard of organizations and internal and external market environment, each organization should has its own reward system, a suitable reward system is very important for a organization to be successful. So the statement should be: A reasonable organization’s reward system can help organizational success. Besides that, organizational success cannot only be left to the reward system. 1. The role of reward system in an organizationReward system is a significant part of the human resource management system of an organization (Armstrong, 1993). It consists by processes for job evaluation, practices for motivating employees, structures for payment and benefits level, subsystems for providing financial rewards and procedures for running the system (Armstrong, 2002). The purpose of reward system is to assist organizations to attract high-quality people from the external labour market, and retain and encourage their own employees. Besides that, it also should motivate the individuals’ performance by meeting the reasonable needs of employees. All of the organizations want to have a sustainable competitive advantage in both of the external and internal market, and according to the definition of reward system, it is no doubt that different organizations should have different reward systems, they should consider all the main components of a reward system, and choose a fittest method to process their own reward systems.