Svensson summarizes the purpose of reward systems in the following seven points. Stimulate to increase effectiveness. Stimulate to improve quality. Give increased responsibility and influence over the individuals own work situations.

1. Purpose of reward systems
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Purpose of reward systems
• Svensson summarizes the
purpose of reward systems
in the following seven
points.
– Stimulate to increase effectiveness.
– Stimulate to improve quality.
– Give increased responsibility and
influence over the individuals own work
situations.

4. Purpose of reward systems
• Svensson summarizes the
purpose of reward systems in
the following seven points.
– Stimulate personnel movement internally
and externally.
– Stimulate competence development.
– Stimulate new work forms.
– Support flexible management and work
forms.