REWARD MANAGEMANT SYSTEM

REWARD MANAGEMANT SYSTEM

     Motivated employees are caused to improve the productivity of any organization. Every organization always try to motivate their employees implementing various type of systems. Rewarding system is effected to motivate the employees.

       Reward management is concerned with the formulation and implementation of strategies and policies, the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organization and thus help the organization to achieve its strategic goals. It deals with the design, implementation and maintenance of reward systems (reward processes, practices and procedures) that aim to meet the needs of both the organization and its stakeholders (Amstrong, 2006).

      Reward policies provide guidelines for the implementation of reward strategies and the design and management of reward process. (White & Druker 2000)

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     Reward management is not just about money., it is concerned with intrinsic as well as extrinsic rewards and with non-financial as well as financial rewards. Intrinsic rewards arise from the nature the job itself. Intrinsic rewards related to responsibility and achievement they are inherent in individuals and not imposed from outside. The extrinsic rewards arise from the factors associated with the job context such as financial rewards, promotion and benefits. They are external to the job and come from outside source. Though intrinsic and extrinsic are different, they are closely related.  (Kesavan R. et al.,2004)

 

THE DIFFERENCE BETWEEN INTRINSIC AND EXTRINSIC REWARDS

Intrinsic Rewards	Extrinsic Rewards
Sense of achievement Feeling of accomplishment Informal recognition  Job satisfaction     Personal growth       Status	Formal recognition Fringe benefits Incentive payments Base wages Promotion Social relationship

 

REWARDING SYSTEM IN ABC BANK

     ABC bank is implementing a rewarding system to motivate their employee to obtain more productivity. This system consists of the two type of rewards such as financial and non-financial. As the extrinsic rewards, salary, incentive or bonus, paid vacation, medical claims are received by the employees.

CONCLUSION

     Rewarding employees is not only the best way of keeping the loyalty in the employees but also is a best way to motivate. It is a way of appreciating the employees for all their hard work, efforts that they put towards the company. Due to this rewarding system, employee will be motivated when they believe good performance lead to rewards.

REFERENCES

Amstrong, M (2006) “human resource management practice” Kogan page London

R.Kesavan,C.Elanchezhian,B.Vijayaramanath(2004) “principles of management” Eswar press Chennai

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