Reward Management

Reward Management

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 (Deshpande, 2014).

Why Employee Recognition Matters
From a very early age, we crave recognition from parents, teachers, and friends. So strong is our desire for positive affirmation, particularly during developmental periods, that we can even perceive a neutral reaction as a negative one.

This continues to hold true as we move into the workplace. Employee recognition helps to:

• Retain top talent

• Increase employee engagement

• Encourage high performance

Basic Types of Reward (Alumni, 2014)

   Extrinsic rewards

Satisfy basic needs: survival, security

Pay, conditions, treatment

Intrinsic rewards

Satisfy higher needs: esteem, development

 Rewards by Individual, Team, Organisation

·   Individual: base pay, incentives, benefits

Rewards attendance, performance, competence

·   Team :

Team bonus, rewards group cooperation

·   Organisation

Profit-sharing, shares, gain-sharing

Role of Compensation and Reward in Organization:

Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men.

Land, Labor, Capital and Organization are four major factors of production.

Every factor contributes to the process of production/business. It  expects return from the business process such as Rent is the return expected by the Landlord. similarly Capitalist expects Interest and Organizers i.e Entrepreneur expects profits. The labour expects wages from the process.

It is evident that other factors are in-human factors and as such labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process.

Reward management in global context

Apple believes especially in offering employee rewards for independent thinking. The company compensates its executives by giving them a bonus of 3 to 5 percent of salary. Last year according to media reports, Apple gave out restricted stock units to a majority of its more than 100,000 employees.

Apple also gives discounts on its range of products to further boost motivation, not to mention retail staff’s ability to sell the products (Whitney, 2012). Furthermore, Apple doesn’t just reward work within the company. It also rewards volunteering. The company’s new donation-matching programme, for example, is being rolled out to all employees.

Employees say they find it rewarding that they aren’t micromanaged – a tone Steve Jobs himself set when he gave his team their mission “to create a phone that people would love so much that they would never leave the house without it.”

Perhaps Apple’s greatest achievement is that they have created a feeling that the work itself is rewarding.

Reward management in ABC Audit firm

It is a local Audit firm. It offers monetary and non monetary reward as detailed below.

Monetary reward

Salary will be given on time.

For audit in out areas providing special payments other than travelling, meal.

Annually incremental happening.

Annual bonus payment also there.

For experienced staffs in the office change will be given to work abroad in its branch with the abroad salary scheme.

Non monetary reward

Once a year in December lunch party at a star class hotel given.  For Christmas two weeks vacation will be given for every staffs. For new year and Christmas company surprise us with greeting cards.

 

Reference

Alumni, M. a. L., 2014. Khoros ATLAS. [Online]
Available at: https://community.khoros.com/t5/Khoros-Community-Blog/Intrinsic-vs-Extrinsic-Rewards-and-Their-Differences-from/ba-p/128969
[Accessed 21 06 2020].

Deshpande, S., 2014. Human Resource Management. [Online]
Available at: https://corehr.wordpress.com/compensation/reward-management/
[Accessed 15 06 2020].

Whitney, L., 2012. cnet. [Online]
Available at: https://www.cnet.com/news/apple-to-reward-employees-with-hefty-product-discounts/
[Accessed 21 06 2020].