Hrm-Reward Management
TABLE OF CONTENTS Page no Introduction 3
1. Employee Stock Option Plan 4 Advantages
Disadvantages
Examples
2. Profit Sharing 5
Advantages
Disadvantages
Examples
3. Gain Sharing 7 Advantages Disadvantages
4. Scanlon Plan 8 Advantages Disadvantages
5. Rucker Plan 8
6. Improshare 9
7. Annual Bonus 9 Advantages Disadvantages Examples
8. Merit Pay 11 Advantages Disadvantages
Conclusion 12 Bibliography 13
REWARD MANAGEMENT
INTRODUCTION
Reward management is the process of formulating and implementation of strategies and policies in order to reward people fairly, equitably and constantly in accordance with the values of the organization. Such system enables to meet the requirements of both the organization and its stakeholders. Reward management strategies should be designed to encourage motivation, commitment, engagement and development of employees.
The strength of an employee’s motivation depends on the value of rewards available to individuals for achieving goals.
Employee motivation is the psychological factor that arouses an employee to behave in a certain manner for achieving certain organizational goals. It is imperative for the organization to enhance motivation level of the employees in order to bring out the best in them. Reward management is the framework that envisions formulation of different types of reward systems to boost the motivation of the employees.
The degree to which the reward management motivates the employees will depend on the effectiveness of the strategy that was
1. Employee Stock Option Plan 4 Advantages
Disadvantages
Examples
2. Profit Sharing 5
Advantages
Disadvantages
Examples
3. Gain Sharing 7 Advantages Disadvantages
4. Scanlon Plan 8 Advantages Disadvantages
5. Rucker Plan 8
6. Improshare 9
7. Annual Bonus 9 Advantages Disadvantages Examples
8. Merit Pay 11 Advantages Disadvantages
Conclusion 12 Bibliography 13
REWARD MANAGEMENT
INTRODUCTION
Reward management is the process of formulating and implementation of strategies and policies in order to reward people fairly, equitably and constantly in accordance with the values of the organization. Such system enables to meet the requirements of both the organization and its stakeholders. Reward management strategies should be designed to encourage motivation, commitment, engagement and development of employees.
The strength of an employee’s motivation depends on the value of rewards available to individuals for achieving goals.
Employee motivation is the psychological factor that arouses an employee to behave in a certain manner for achieving certain organizational goals. It is imperative for the organization to enhance motivation level of the employees in order to bring out the best in them. Reward management is the framework that envisions formulation of different types of reward systems to boost the motivation of the employees.
The degree to which the reward management motivates the employees will depend on the effectiveness of the strategy that was