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Reward Management


Reward Management



Reward management is a motivational practice that businesses use to reward employees for their achievements and success. The company sets goals and establishes rules for its employees to follow to achieve those goals. It makes sure that employees are clearly aware of these goals, rules, and the rewards they will get for high performance. All employees follow the same reward system, and the system is organized and just. Using a website to track employee development enables the employee and employer to monitor progress and easily identify when goals are reached and rewards earned. (https://study.com/academy/lesson/reward-management-theory-importance.html, 2020)

Why Is Reward Management Important?
Nowadays, people often don't remain at their jobs as long as Chris. Each time a new employee is hired, the company spends money on hiring and training that it could have spent elsewhere. Having a good reward system helps keep employees happy, loyal to the company, and eager to move up the ladder. Rewards, like public recognition and additional pay, motivate employees to work harder.
Reward management is important for the following reasons:
  • Retains employees
  • Attracts new employees
  • Avoids the cost of hiring and training new employees
  • Builds loyalty and honesty
  • Creates a healthy work environment
  • Encourages positive attitudes and behavior
  • Makes employees more likely to seek advancement
  • Strengthens the company's reputation
Reward schemes
A broad definition of reward schemes is provided by Bratton: ‘Reward system refers to all the monetary, non-monetary and psychological payments that an organization provides for its employees in exchange for the work they perform.’
Rewards schemes may include extrinsic and intrinsic rewards. Extrinsic rewards are items such as financial payments and working conditions that the employee receives as part of the job. Intrinsic rewards relate to the satisfaction that is derived from actually performing the job such as personal fulfillment, and a sense of contributing something to society. Many people who work for charities, for example, work for much lower salaries than they might achieve if they worked for commercial organizations. In doing so, they are exchanging extrinsic rewards for the intrinsic reward of doing something that they believe is good for society. (https://study.com, 2018)

Objectives of a reward scheme
What do organizations hope to achieve from a reward scheme? The following are among the most important objectives:

1.      To support the goals of the organization by aligning the goals of employees with these.
2.      To ensure that the organization is able to recruit and retain a sufficient number of employees with the right skills.
3.      To motivate employees.
4.      To align the risk preferences of managers and employees with those of the organization.
5.      To comply with legal regulations.
6.      To be ethical.
7.      To be affordable and easy to administer.



Reward System of ABC Bank Pvt Ltd.
ABC Bank is the largest employer in the banking & the financial services sector in Sri Lanka. ABC bank has employees strength nearly 8000. It has 500 branches in island-wide and three overseas branches. The following diagram shows the talent management system in the ABC Bank.

Systems & Talent Management
 

 


Conclusion
Reward management can be considered as developing & implementing strategies, Policies & systems which help the organization to achieve its objectives by obtaining & keeping the people it needs and increasing their motivation and commitment. 

References
https://study.com. (2018). Retrieved from https://study.com/academy/lesson/reward-management-
theory-importance.html.

https://study.com/academy/lesson/reward-management-theory-importance.html. (2020). Retrieved
from https://study.com/academy/lesson.

B.A.Lankeshwara

Comments

  1. SamanthaJune 18, 2020 at 8:58 AM

    Hi anura
    You have given the definition if the reward management and its clear and ok.
    Further when writing blog article you must analysis some reward related problems faceing in employees in an organization.
    Further with the pandemic situation lot of large companies in all around the world has offerdsome attractive rewards and benifts to their workforce.
    That must be come to discussion
    Further company must adopt clear and fair reward strategy involves designing and implimenting reward policies and practices to support organizational objectives, dilivering a motivated and effective workforce.

    ReplyDelete
  2. MBA_19June 18, 2020 at 9:44 AM

    Thanks brother

    ReplyDelete

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