Ethics And Functional Areas Hrm

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Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in return for their service to the organization. Compensation and Reward system plays vital role in a business organization. Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.

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Today’s organizations are operating in a very dynamic and highly competitive environment. To remain relevant in the market, they have to be able to respond quickly to ever changing customer demands. Rewards management is one of the ways used by organizations for attracting and retaining suitable employees as well as facilitating them to improve their performance. (Armstrong, 2010: 261) Nowadays there is so much changing occurring in the business world and every business entity or organization has much relay on employee’s good performance. Rewards are considered as an important tool to check the employee’s performance. (Armstrong, 2010: 260) An employee reward system consists of an organization’s integrated policies, processes and practices for rewarding its employees in accordance to their contribution, skills, competence and their market worth. It’s developed within the framework of the organization’s reward philosophy, strategies and policies and contains arrangement in the form of processes, practices, structures and procedures which will provide and maintain appropriate types and levels of pay, benefits and other forms of reward (Armstrong, 2007). Reward system is an important tool that the management uses to channel employee’s motivation in desired ways such as better functionality and further improve company performance. Employees are the most valuable asset to an organization and they play an important role in preserving the successful image of organization. Employee performance is the main factor in ensuring that the organization is run smoothly and successfully. Managing employees' reward appropriately is an important factor as a return for their contributions or performance to organization. The essay explore the meaning of various concepts such as performance, rewards, reward management, reward system, Literature review on performance and reward from other scholars as well as reviewing one case study on the topic.

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