Reward Systems
REWARD SYSTEM
One of important attributes of work organization is the ability to give reward to their members. Pay, promotions, fringe benefits, and status symbols are perhaps the most important rewards. Because these rewards are important, the ways they are distributed have a profound effect on the quality of work life as well as on the effectiveness of organization.
Organization typically rely on reward system to do four things :
1. Motivate employees to perform effectively.
2. Motivate employee to join the organization.
3. Motivate employee to come to work, and
4. Motivate individuals by indicating their position in the organization structure.
There are several principles for setting up an effective reward system in an organization : * Give value to reward system. Employees must have preference for the type of rewards being offered. Many employees prefer cash reward and plaques. Some employees like to see their name in company news letter. Others like the public recognition surrounding award ceremony. * Make the reward system simple to understand. Elaborate procedures for evaluating performance, filling out forms, and review by several levels of management lead to conclusion. The system must be easy to understand if it is to be used effectively. * Lay down performance standards with in the control of the team. * Make the reward system fair and effective. * Ensure participation in the reward system. * Involve people in the reward process and empower them to do the needful.
Most organizations use different types of rewards. Examples of recognitions and rewards include money, plaques, trophies, certificates/citations, public recognition, official prerequisites, special assignments, parties or celebrations or other meaningful celebrations. The most common are wages or salary, incentive systems,benefits and prerequisites, and awards. For majority of people, the most important rewards for work is the pay they receive. For one
One of important attributes of work organization is the ability to give reward to their members. Pay, promotions, fringe benefits, and status symbols are perhaps the most important rewards. Because these rewards are important, the ways they are distributed have a profound effect on the quality of work life as well as on the effectiveness of organization.
Organization typically rely on reward system to do four things :
1. Motivate employees to perform effectively.
2. Motivate employee to join the organization.
3. Motivate employee to come to work, and
4. Motivate individuals by indicating their position in the organization structure.
There are several principles for setting up an effective reward system in an organization : * Give value to reward system. Employees must have preference for the type of rewards being offered. Many employees prefer cash reward and plaques. Some employees like to see their name in company news letter. Others like the public recognition surrounding award ceremony. * Make the reward system simple to understand. Elaborate procedures for evaluating performance, filling out forms, and review by several levels of management lead to conclusion. The system must be easy to understand if it is to be used effectively. * Lay down performance standards with in the control of the team. * Make the reward system fair and effective. * Ensure participation in the reward system. * Involve people in the reward process and empower them to do the needful.
Most organizations use different types of rewards. Examples of recognitions and rewards include money, plaques, trophies, certificates/citations, public recognition, official prerequisites, special assignments, parties or celebrations or other meaningful celebrations. The most common are wages or salary, incentive systems,benefits and prerequisites, and awards. For majority of people, the most important rewards for work is the pay they receive. For one