Reward management theory and it’s importance:
Reward management is about changing strategy in a company to motivate your workers.
The amount and terms of the award and the goals need to achieve to receive approval that should be determined. Also, for each employee (including whatever they want), the company or the business choose what bonus policy to adopt.
But the company can also meet with the staff members to seek and find a bonus policy based on their targets and that suits both the employer and the employees.
we can also find that some organizations engaging in the management of performance-based rewards that can lead to improving the productivity and to strengthen employees.
Reward management is important in any company or business as it gives the employees something to work for and to expect, it makes them appreciate working at that company like their time there and also in different ways, compensation for good work can come. It could be an improvement in the workers’ pay or a day off, or an opportunity to expand or travel in the business.
A successful program which compensates employees will help make them happier. It also keeps them committed to the organization and makes them excited to step up the inner ladder.
They can also have a section on business practices and processes in designing work contracts, as well as a section on pay & benefits.
Types of rewards in the workplace:
Talking about rewards in the workplace we find that it compensations can come in different kinds and shapes. They can either be, performance-based, or membership-based.
- What is performance-based compensation:
That method of compensation is based on the skill of the individual team members.
You conduct a performance assessment by evaluating the work of an individual and running the workplace for a period of time.
- What is membership-based compensation:
Regardless of individual efforts, employees may receive a bonus on the basis of the company’s performance.
Examples of performance-based rewards:
· Pay: As a job provider, the pay will be checked and increased depending on the qualifications and achievements of the employee. the organizations will include all details about the wage appraisal process in your employee manual.
· Bonuses: Creating a company bonus system that enables all employees to fairly issue bonuses.
· Events: Give the workers career programs or social activities.
· Promotion: Providing promotions to employees who have gone beyond. Promoting other team members from inside is inspiring, as it demonstrates that job prospects do exist for them.
Benefits of reward management:
· Greater efficiency of workers: The staff should be more involved, inspired and efficient. They are also motivated to work better when they appreciate good work.
· Loyalty: The staff can have trouble developing loyalty. Offering rewards and other incentives not only creates confidence, but also strengthens interaction with company as a way to celebrate their accomplishments.
· Job satisfaction: Team members are more satisfied because they feel it leads to the company’s progress. Acknowledging their efforts in large projects makes them feel appreciated.
Improved retention rates: Investing in a compensation system often makes for a reduced turnover for the staff. A high turnover of employees could lead to bad morality, which can lead them to look for alternative jobs.
Conflict and tension in the workplace between the parties of the job (the employer and the employee).
We find that disagreement may also be characterized as discord or disagreement between the interests of ideas, because conflicts are not inherently bad, but people prefer to look at conflict in a negative way at the workplace, but I think that may be some successful means of educating and becoming more efficient and happy at the workplace. Conflicts are not always a negative way of looking at dispute at a workplace.
Traditionally, industrial relations and employee management advocates have differed views about organizational conflicts while many writers argue that in many organizations conflict are inevitable, and that employment is primarily a trade-off ground. This essay argues that conflict is inevitable both when employees and employers get together in the workplace, conflicts will arise sooner or later. The employees will be dissatisfied with their working conditions and mostly strike results will be discussed in subsequent paragraphs.
Talking about strikes we find that; a strike includes a removal of labor from the organization by employees or suspension of ordinary work by employees. Where we find that the goal behind a strike is to impose demand on an employer or complain against unjust labor practices in relation to the terms of jobs. With this being said, a strike happens in a situation where workers and employers can’t mutually settle their disagreements to create, control or conclude the wage exchange. Which bring us to the following:
Firstly, a strike may be separated in three separate ways, i.e. the inspection process of the magnitude, width and length of strike.
There are numerous reasons of strike action, but compensation tends to be the primary driving factor in conflicts between workers, unions and syndicates. It involves the worker seeking wage payment or bonuses raises, the return of differentials, clear work rates and guaranteed wages.
Others refer to management, staff, organization of the workplace, technology and working environments where the workers know they are not protected or have to work in terms of words.
“Strikes are highly nuanced and are themselves categorized as a number of different forms of operation under a single name,” concluded Jackson (1987). Each hit is carried out for various kinds of purposes, at different occasions, and has a different significance for different actors as it is the most apparent and the most quantified type and industrial action.
The crisis in Royal Posts where syndical members protested against pay, job losses, which they claim will come from modernizing the company, and the plan to cut the pension of 167,000 of its staff for five more years before they collect their pension pay, has led to strike action to continue to disrupt the postal service across the nation. The union argues that the move reflects its growing disappointment with the Royal Mail because it refuses to take workplace security requests and increase wages ‘seriously.’
This supports the opinion of (Jackson,2987) that labor action is different under one name, but strike is being undertaken at a particular time for particular kind of purposes and has different significances.
The concept of money as a motivator, is it really a good compensation theory:
Talking about money we find that, works behavior, which motivates efficiency and employee behavior, is important for organizational success? The competitiveness and efficiency of the company will directly affect the productivity. Work behavior can be influenced by knowing what motivates and motivates employees’ behavior. Encouragement can be characterized as “internal wish for a need,” which means encouragement between workers and managers may create an atmosphere that only motivates workers to meet organizational objectives. An unsatisfied desire leads to action, and this conduct has implications that will lead to the target attainment. If managers know what motivates their employees, they can influence their work behavior. The question that human resource managers must ask is does money motivate performance and employee behavior?
As a motivator, money should never be overlooked. Money frequently is more than monetary value; it also can mean status, power or anything else. It is said to be the ultimate motivator, for the following reasons, money is money, which can be more important to some people than others.
Money is an important means to maintain a basic quality of life, even though it does have a way to raise that basic life, as people become more into it.
And also, It is quite probably true that money is used as a way to maintain an adequately staffed organization in most businesses and other enterprises, not primarily as a motivator.
3Companies generally attract and retain people through their industry and geographical area, making salaries and salaries competitive.
Not to forget that Money as an opportunity is quite dulled by the tradition of keeping the salaries of the different managers fairly close in a company, in other terms, companies often ensure that employees are paying the same or approximately the same amount of pay at similar rates.
This can be reasonable and understandable since employees often evaluate their rewards based on the ones of their peers
And of course, If money is to be an important reward, wages and bonuses must be offered to employees in a number of jobs, though at a similar amount. Just if an organization has a common pay and benefit system, a well-managed requirement is rarely tied to the same compensation practice.
It seems that an organization does not buy any incentive from them, because rewards for management are focused primarily on individual results.
The means to make sure the money is an incentive for achievement, a way to make people appreciate their success is to base rewards on results to the fullest degree possible.
In other words:
Most small businessmen claim they would not seek external incentive if you have the right people on the bus. While these top performers demand that they be charged at the market rate, they do not require any extrinsic incentive. They are motivated. No matter the situation, they could not picture anything less than their very best.
For top performers, this could be much higher than normal. Most of us don’t live in Lake Woebegone, alas. The average employee is normal in the real world, however. Indeed, the average employee wants global inspiration. The notion of being able to eliminate motivation so individuals can keep working hard as they are inspired naturally contradicts the human condition.
In fact, if people believe there is incentive for positive performance and punishment for poor ones, they will work harder. Elite workers, though, tend to inspire their citizens in the vast majority of businesses.
Perhaps the most important motivator is reward. Research reveal that even the promise of having money is good enough to inspire behavior. This fails, but tests prove. The employee’s happiness disappears very soon after the money is paid in a week, a variety of studies claim. The same findings further demonstrate that the bonus level will be at least 10 percent of the minimum salary for the duration if the behavior is really to improve.
Money is significant, but more than compensation alone is what we all want and need. Our research shows that the individuals who belong to a winning team want to be remembered. That means you want to learn that the business you are working with succeeds. You want to learn that what you do works, and to do that you want to appreciate these contributions.
Taking the opportunity to celebrate success. Disingenuous hoopla won’t work, which management has to understand if a company’s success is bad. However, when an organization is in difficulty, success will be accepted if it continues going in a good direction. Celebrations remind workers of the performance of the business, the first of three reasons.
Secondly, workers need to consider how they relate to this accomplishment. How are they going to know? They have to be informed by their boss. If the organization can’t find a way to add to an employee’s performance, then inquire if this job or that role is important in the first place.
