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Paper Topic:

Reward Management

Employee Rewards


Nowadays , all managers , regardless of their roles , recognize that outstanding employee performance is important in today 's world

According to Rummler and Brache (1995 , the first thing to remember is that employee performance does not happen in a vacuum . Companies have to adopt a systems perspective and look not merely at its employees , but at the environments in which it expects them to perform as well . As other people say , if we put good performers in bad systems , the systems will win always . We are aware that behavior

in any aspect of our lives is a function not just of the individual , but likewise of the environment - more particularly , of the interaction of the individual and the environment as well (Harvard Business Review , 1973 . Thus , behaviors at work , are a function of the contact of the employees and the work environment . Moreover , it is also important to note that it is behaviors that lead to performance

The purpose of this is to discuss if available evidence suggest that the use of financial , or other rewards , is positively linked to improved employee performance and productivity

Rewards Lead to Improved Employee Performance and Flexibility

Based on the readings , I believe that there is sufficient evidence that the use of rewards , financial or otherwise , is positively linked to improved employee performance and flexibility

According to Armstrong and Brown (2001 , rewards and recognition can be potent tools for performance improvement and employee motivation Several kinds of rewards and recognition have direct costs linked to them like stock awards and cash bonuses and a broad assortment of company-paid perks such as gift certificates , paid parking , and car allowances . Other kinds of rewards and recognition might possible be considered as less tangible , but still extremely effective (Thorpe and Homan , 2000

Meanwhile , we will first discuss the major objectives of rewards and recognition . As Zigon (1998 ) contends , rewards as are something that increases the frequency of an employee action . This points out an apparent result of rewards and recognition , which is to improve performance . As asserted by Keller (1999 , non-monetary recognition could be extremely motivating , helping to develop feelings of satisfaction and confidence . Another significant objective is increased employee retention . Jimenez (1999 ) said that an ASTD report on retention research revealed that constant employee recognition is a primary factor in retaining top-performing workers

To attain desired objectives , reward systems must be directly aligned to organizational strategies (Allen and Helms 2002 . For instance , a firm concentrated on a product differentiation strategy could devise their reward practices to promote innovation to offer exceptional products or services , whereas a firm , which specializes on cost reduction strategy may possibly concentrate on rewards for ideas to lessen or do away with costs and employee stock awards to promote a continuing cost reduction emphasis

According to Armstrong (1999 , employee reward concerns how employees are rewarded in line with their value to an organisation . Armstrong (1999 ) added that employee reward involves both financial and non-financial rewards and includes...

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