This document discusses reward systems and employee motivation. It defines rewards as benefits received by employees for job performance. There are intrinsic rewards like a sense of achievement, and extrinsic rewards provided by managers like recognition and bonuses. An effective reward system aligns rewards with organizational goals to motivate employees. It should involve employees and set transparent standards. Recognizing accomplishments, offering varied rewards, and changing rewards frequently can help consider different employees. The conclusion emphasizes the importance of a comprehensive reward system that provides both intrinsic and extrinsic factors to create long-lasting employee engagement.
3. TABLE OF CONTENTS;
REWARD AND REWARD MANAGEMENT.
TYPES OF REWARD SYSTEM.
FUNCTIONS OF REWARD SYSTEM.
ADVANTAGES AND DISADVANTAGES OF REWARD
SYSTEM.
WAYS TO REWARD EMPLOYEES.
TIPS FOR CONSIDERING REWARD PROGRAMMES.
4. Reward;
The achievement and benefit received by employees for their job performance in
an organization are known as reward.
Economic and non economic benefits provided by organization to employees for
their job performance regardless of their expectation is known as reward.
6. Reward Management;
Matching the reward system with the level of performance for each job assigned
in organization is known as reward management.
7. Purpose of Rewards System:
Attract talented Individuals.
Motivate Employees.
To create better working environment.
Reducing absenteeism.
Better business reputation.
8. Effective Reward Systems,
Rewards are positive outcomes that are earned as a result of an
employee's performance. These rewards are aligned with
organizational goals. When an employee helps an organization in the
achievement of one of its goals, a reward often follows.
9. There are two general types of rewards that
motivate people: Intrinsic and extrinsic.
10. Intrinsic Rewards,
Intrinsic motivation is internal to the person in that it is something that you have
to offer yourself and is driven by personal interest or enjoyment in the work
itself. Because intrinsic motivation exists within the individual, achieving it does
not depend on others.
Intrinsic rewards include things such as: personal achievement, professional
growth, sense of pleasure and accomplishment.
In Workplace, managers should;
Provide meaningful work
Allow workers to make choices through a high level of autonomy
Provide opportunities for employees to show their competence in areas of
expertise
11. Extrinsic Rewards;
Extrinsic motivation is based on tangible rewards. Unlike intrinsic
motivation that is self-administered, extrinsic motivation is external
to the individual and is typically offered by a supervisor or manager
who holds all the power in relation to when extrinsic awards are
offered.
12. Reward and recognition:
Employees are the major contributors in the company and thus, it is necessary to
provide them with such rewards and recognition at the workplace so that they will
get motivated. Rewards and recognition are the major factors that could help to
control the behaviour of employees and change their work habits.
13. Functions of reward system;
Enhance employee motivation:
The major function of reward system is to enhance the employee motivation.
14. Increase employee productivity:
When the employees will get something more in consideration of their
contribution to organizational objectives, they will try to improve
themselves.
15. Retain talented workforce:
Under reward system, the employees are provided with variable pay scales, extra
incentives, monetary gifts, bonuses etc. which increases the morale of the
employees and they get satisfied from the job.
16. Advantages and Disadvantages of Reward System;
Advantages;
Puts Employees in Control,
Job satisfaction increases, which encourages them to stay with the company.
20. Best ways to reward your Employees,
1. PRAISE,
A handwritten thank you note or a private conversation detailing how
much you appreciate an employee’s efforts will create a long lasting
dialogue about performance while keeping your employees on the
right track.
2.RESPONSIBILITY,
The amount of responsibility you give to an employee should directly
correlate with how capable you believe they are.
21. 3.SMALL EVENTS,
Try to throw a small break room celebration every few weeks. You can
celebrate monthly birthdays and company anniversaries with a cake,
iced with the relevant employees’ names.
4. FLEXIBILITY,
They’ve exceeded what you could have reasonably expected from
them. Why don’t you let them cut the day short?
22. Reward is a kind of motivation. Motivated employees cn work in a
better way. Employees reward programe should consider following
things;
Tips for considering reward programme,
Involve all employees in the development, implementation and revision of
rewards programs.
Ensure that employees view the rewards as worth the effort.
Make sure that employees understand how to earn the reward
Set reasonable and transparent performance standards for rewards.
Make sure employees view the reward system as fair.
23. Recognize small and. large accomplishments.
Reward teamwork and cooperation.
Offer financial rewards, non-monetary rewards and recognition.
Change the rewards frequently.
24. Conclusion
Reward system plays a key role as they determine the employer employee
relationship. The reward system defines what the employer is willing to
give which has a direct impact on what employees are willing to contribute
in exchange.
Compensation and benefits alone are no longer effective as motivating
mechanism because they cant create the employee engagement required
to compete in todays complex and fast moving business environment. To
create an employment relationship, test is long lasting. Organization scan
adopt a more comprehensive view of rewards. We suggest a view that
considers the full spectrum of rewards both extrinsic and intrinsic factors.
