REWARD MANAGEMENT….
Reward management can be explained as an extension to HRM
strategies and policies rewarding employees fairly and equitably according to
their value to the organization. It is a systematic process which targets to
achieve organizational goals while fulfilling the needs of stakeholders
including employees. Reward Management connects with the design,
implementation, and maintenance of the reward system in an organizational
context.
Reward management is some kind of psychological and the motivational process that concerned about both financial rewards (salary and
payroll, Increments, bonuses) and non-financial rewards (recognition,
appreciation, training, and development)
According to Armstrong (2006) “reward system consists of,
● Policies that provide guidelines on approaches to managing rewards.
● Practices that provide financial and non-financial rewards.
● Processes concerned with evaluating the relative size of jobs (job
evaluation) and assessing individual performance (performance management).
● Procedures operated in order to maintain the system and to ensure
that it operates efficiently and flexible and provides value for money.” (Armstrong,
2006)
The emerging concept
of “Total Rewards” has defined by “Manus and Graham” in 2003, as a collection
of all types of rewarding including direct, indirect, intrinsic and extrinsic.
Total rewards have two types of influences namely, Transactional rewards and Relational
rewards.
Transactional Rewards Relational
Rewards
Tangible rewards Intangible
rewards
Based on pay and benefits Based
on learning and development
Financial rewards Non-financial
rewards
Features and outcomes of Rewards
Management
· 1. Motivate
employees to give a maximum contribution, commitment, and engagement towards
the organization
· 2. Attract
existing employees as well as outsiders while reducing the employee turnover
ratio.
· 3. Valuing
employees based on their commitment and hard works done.
· 4. Create
and maintaining long-term employee satisfaction level while encouraging them to
act with team spirit through the fair, equitable and transparent rewarding
process.
References
Armstrong, M., 2006. A Hand Book of Human
Resource Management Practices. 10th ed. s.l.:Kogan Page.
Having a good reward system helps keep employees happy, loyal to the company, and eager to move up the ladder. 🏆
ReplyDeleteRewards, like public recognition and additional pay, motivate employees to work harder. 🌟💰💲💵
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.
ReplyDeleteYes. As I have mentioned in this article, reward management should always fair and equitable, since the inefficient and poor reward management system may cause unexpected employee dissatisfaction.
DeleteReward management consists of analysing and controlling employee remuneration, compensation and all of the other benefits for the employees. Reward management aims to create and efficiently operate a reward structure for an organisation.
ReplyDeleteReward structure usually consists of pay policy and practices, salary and payroll administration, total reward, minimum wage, executive pay and team reward.
ReplyDeleteModern reward management techniques, such as those introduced by uflexreward in 2019 digitise the reward policies themselves, such that reward spend and ROI can predicted and tracked in real-time.
ReplyDeleteReward management is a popular management topic. Reward management was developed on the basis of psychologists' behavioral research. Psychologists started studying behavior in the early 1900s; one of the first psychologists to study behavior was Sigmund Freud and his work was called the Psychoanalytic Theory.
ReplyDeleteReward management is the process of rewarding the achievement and success of the employees of an organization. This will also help to achieve the objectives of an organization.
ReplyDeleteMany other behavioral psychologists improved and added onto his work. With the improvements in the behavioral research and theories, psychologists started looking at how people reacted to rewards and what motivated them to do what they were doing, and as a result of this, psychologists started creating motivational theories, which is very closely affiliated with reward management.
ReplyDeleteHappy, motivated and loyal workforce always give the maximum contribution to their organization. Proper reward management should be there to evaluate and recognize the employees and to raise them in their career paths.
ReplyDeleteThe elements of reward management within a business organisation are all the things that they use to attract potential employees into their business which includes salary, bonuses, incentive pay, benefits and employee growth opportunities such as professional development and training opportunities.
ReplyDelete