Report on Reward system in organization

Motivation is very much important in our life because without motivation we have no courage to do anything in our study or practical life like job. To improve the performance we must need motivation. It is just like an internal force that enhances the need of a person to achieve its goal and also provide best results at the end. It is just like in future the consequence of expectations that give a hope that everything is going to be good in future and at the end also give excellent results.

In different organizations proper motivation system must be establish for its employees to support them and motivate them that they perform very well in their field and provide good response. And for motivation proper reward system must be held in the organization. Such reward system is very important part of the organization because without these system the organization fails to provide reward to its employees and also motivate its employees because those organizations who are giving reward to their employees on their good performance, their employee give their best for enhancing the level of organization and the productivity of the organization going to increase.

So proper reward system with all the elements must be managed in the organization  and employees get complete benefit from the reward system and they also get motivated through this system because they know very well that after performing well and giving best results and achieving targets they get extra benefits in form of money or any other item that us beneficial for them and motivate them for the next time so they perform better than before in next time to avail the reward and earn money more than their salary.

 Table of content:

Executive summary……………………………………………………2

Introduction…………………………………………………………..4

Explanation……………………………………………………………4

Conclusion…………………………………………………………….10

Reference………………………………………………………………10

Introduction of Reward system in organization

Reward system is very much important in every organization because employees want some motivational reward against their hard work and when they receive such reward their performance going to be improving. So it can be said that reward system are the source of motivation among employees for enhancing their performance and also provide them better facilities in their job career. Reward system is very helpful and sometime work as helping tool for the organizations to motivate the employees and improve their working performance in the positive direction. Because every employee want that his efforts and hard work must be consider and he get some extra benefit against its hard work so in such situation reward system is very effective and enhance the long life of organization.

Explanation of Reward system in organization

For detail analysis of reward system of organizations, first of all observe the functions of the reward in the organization. Reward means that all those benefits that employees receive from their job in their work place. And it’s also enhancing the motivation and organizational commitments. In building and sustaining the commitment among the employee the reward plays a very important role that ensure about the workforce constancy and high standard of performance. In an organization an individual enters with unique set of skills, goals and desires and it also expect some supporting working environment that enhance and motivate its skills, help in attaining its goals and satisfy its desires. By well balance reward program and recognition system organizations have increase the substantial improvement for their employees and motivate them in better way. As part of organizational relationship with the organization employee receive reward that include all type of financial benefits, tangible services and benefits received by the employee. In simple words there are two main parts of reward that show how much reward is attractive and beneficial for the employees, the first part is its quantity and the second part is weight age that provided to employee. When the employee receives healthy reward from organization than the employee going to closer with their organization and perform better job. The reward is helpful in increasing the performance and efficiency of the employees. And due to their increasing performance the success of the organization also going to increase. Reward determine by the job specification and job description of the employees. The reward of the organization includes financial and non financial benefits provided to employee within their employment relationship of organization. (The role organizational rewards on employees motivation, 2014)

For attract potential employees, the reward management system include different elements in the business organizations that include employee growth opportunities, benefits, pay incentives, bonuses and Salary. It can be seen that in small businesses the managers are providing a lot of advantages to the employees, this can be done through reward management system that will provide greater business advantage. For increasing the performance of the employees in the organization it is necessary for the managers that they must have to motivate their employees. For that case the reward program will be most successful.

There are some reason that are involved in making this reward system important are team work, morale, loyalty, absenteeism, motivation and mutually beneficial. The teamwork spirit going to be increase in the organization due to reward system. It promotes all the employees related to teamwork. For achieving the target the employees must have to work as a team in the organization, through this system their efficiency will be increased and there will be pleasant working environment. This means that this reward system is extremely valuable for the organization if they wanted to gain profit or enhancing the performance of the organization. It boosts the morale of employees by having a reward system in the organization will help them to be recognized in front of everyone. This rewards system will give clear and elaborative focus to the employees because it encourages the employees for achieving their goals. This will also enhance morale of the organization because through this employee morale is boosted. This is going to be happening because of reward system. The employees will be more loyal and consistent than before because of this reward system. Due to this system the employees of the company felt valuable and important for the organization. The result is that the employees are appreciating their workplace and also works will proper loyalty, this is because they are extremely happy with the reward system. Due to this system the efficiency of the employee is increased and he knows what he has to do in the organization. The next big advantage of this reward system is that due to this the employees become punctual and there will be lack of absenteeism in the organization. The employees of the organization are well aware of their targets when they have proper information about the reward system. this means that the employees know that what they have to do for achieving the company goal at the required time due to this reward system. The best thing about this reward system is that the motivation level of the employee will be increased automatic without any difficulty. There will be huge rewards for the employees when they are able to met the company goal at the required time. The reward system is financially beneficial for the employees as well as for the company. If the company has reward system means their employees are highly motivated and work with proper honesty. This will be beneficial for the organization very well. So mutually the reward system provides benefit to organization and employees.

There are many type of reward system held in the organizations, like performance base vs. membership based reward, financial and non financial reward and intrinsic and extrinsic reward.  The reward of the membership based include an increase in the potential of future, time in rank, increase in salary and benefits and cost of living. The reward of the performance based include the usage of pay for performance plan, merit pay, group bonuses, incentive schemes, piece work play plan and commissions used in the organization for the employees. All the financial reward directly gives to employees like profit sharing scheme, increase in wages and bonuses. The non financial reward make the job of employee more attractive by providing reward from organization like staff restaurant, counseling services, crèche facilities, help with long term sickness, access to private medical care, and attractive pension scheme. All the reward that is external to job are included in the extrinsic and come from the outside sources. It includes money, promotions and many other benefits.  The intrinsic reward are come within the job like pride in your work that giver personal satisfaction to the employees or they feel accomplishment or being a part of team they get reward all included in the intrinsic. Personal growth from job or feeling of achievement comes in the reward of intrinsic. So all type of reward are held for the benefit of employees and give against their efforts and hard work and promote the performance to move at upper level of success. (ukessays.com, 2016)

 In the success of organization the motivated workforce consider as significant factor. The organization as a whole runs more efficiently and in more effective manner to obtaining its goals when all the employees are motivated to work at higher level of productivity. Managers have to understand the power of reward system and how much they influence the behavior of employees for the benefit of the organization. The importance of the rewarding system to employees is very much helpful that focus people to do more work harder and enhance the productivity of the organization. When the people are going to appreciated then they do their work with more efforts and hardly. More than 80% employees say than when they recognized and rewarded in the organization their productivity going to increase and they give their 100% to accomplish the target of the organization. In many organization employer want that their employees become happy and work with happiness. Because happy and relax mind is more productive and they contribute in high morale so the employer want to provide such environment to all their employee that provide then relax and happy atmosphere.  When the morale of employees going to high then the return of the organization also going to increase. Employee feels happy and proud when the organization recognizes their work and efforts and they increase their hard work and get more satisfaction from their job. So in this regard the reward must be awarded to employee against their hard work and extra efforts so they feel that company count their efforts and their hard work never fails. Their trust on the organization also increases when the management recognizes the work of employees and reward them against their target achievement. Because there are many employees who want that organization consider them as a loyal and hard work employee and when they achieve this stage then their trust going to be more strong and organization also give them reward against their extra or additional efforts. The reward system is just like an helping tool for the organization because it enhance the motivation of the employees more than punishment. Punishment stop the employees from bad or poor performance but not increase their efforts or motivate them but the reward system increase their morale, their efforts and they believe that their hard work must be recognized by the organization because reward has more power than punishment and its make the people strong and hard work and they perform very well when they know that they get reward from after giving maximum efforts and accomplish targets. Many researches explain that reward system in the organization increase the productivity and performance of the employees and motivate them and explore their skills and capabilities in positive way so they utilize their skills and capabilities in most effective manner. Because every employee wants that its work must be appreciated and management promote him due to its skills and experience. So the reward system is beneficial for the employees and organization in many direct and enhances the overall productivity and also increases the profit of the organization and give benefit to all its employees. (Hamlin, 2019)

Motivation is consider as the driving force in the individual toward its goals and objectives to accomplish the expectations and needs. Basically motivation means a relationship of depended and independent variables that explain the behavior of persistence, directions and amplitude    and showing constraints effects on understanding the task, aptitude and skills  in the work environment of operating constraints. Motivation means the expectation more than the actual achievement and influence by internal and external factors of the organization and also enhances the willingness of the employees to increase the work force to achieve the specific target. There are many different methods used by the managers through which they motivate the employees for the organization. Intrinsic motivation happens inside the individual of the organization. With pleasure and satisfaction the motivation is going to be generated in achieving the target. The opportunities of advancement, interesting work, scope to use and develop skills and abilities, freedom of act and responsibility all are included in the factors that influence the intrinsic motivation. These motivations are inherent in individual and they tend to have long term effects and they are concerned with the quality of work life. Extrinsic motivation is something that is done for the people. It is outside the organization like grade, money or criticism. Such factors give great pleasure and satisfaction to the employees such motivation have powerful impact on the employees and with low interest they can give their best result in short time period.

There are many type of theories are develop that depend on the individual ‘need. These types of theories explain that individual as employee need changes and give attention on that factors that motivate them. Encourage them and give them satisfaction for their work. These theories include Maslow’s hierarchy of needs, McClelland’s learned need theory, Herzberg’s motivation theory and alderfer; s ERG theory. Here we are going to discuss the Maslow’s hierarchy need that included into five major categories; self actualization need, esteem need, social need, safety need and physiological need. The physiological need include the basic human need that is required for the survival of human. Like food, air, comfort and water. Through financial reward organization fulfill this need of employees like salary and help employee to satisfy this need in better way. Safety need include the stability and security that is desire of every employee. Health insurance, and permanent employment contract are the reward for provide the relaxation to employees to accomplish their safety need. every person has desire to love, belongings and affection. Affiliation include in the desire of social need. Through parties, games, and celebrations the organization try to accomplish this need of employees. Direct concern of employer and care also provide the employee this social need fulfillment. Esteem need include social recognition, self respect and personal worth. Every employee wants to get good reputation among other employees and other persons show respect through their behavior and attitude. So all these accomplish the need of employees. So organization through recognition and appreciation complete this need of employees. Self actualization need include the individual requirement related to their accomplishment of task or promoting their skills for doing to target in most effective manner. By providing different challenges to all employees motivate their mental skills, provide them better training to enhance their skills, and encourage then their positive attitude.  (Mack, 2019)

Incentives are the tools that enhance the action of employees in positive direction. It is just like additional remuneration or reward in recognition of achievement or better work. For performance better the reward provide very much benefit to all the organization. There are some need for reward to employees in the organization are ; to get the maximum capabilities of employees, to inculcate the enthusiasm and zeal towards work, to give better shape to subordinate for work, give them maximum satisfaction related to their job, increase the commitment in work performance, to drive a stimulus work and to enhance the productivity. Management give two major type of reward top its employees against their efforts the monetary reward and non monetary reward. Monetary reward in the form of money that complete all the requirement and needs of its employees and they perform very well in the organization and going to be a loyal and hard work employee of the organization. Many material items included in the monetary rewards like bonuses, wages plan and many others. The non monetary reward include other items expect money like promotion opportunities, job enrichment, suggestion scheme, recognition, and security of services. (managementstudyguide.com, 2019)

The reward system is very much important for the organization and provides better results and for this the employees of the organization must be updated, active and sharp and also loyal with the work. There are many type of reward system that are utilized by the organizations for the employees top encourage them and motivate them. The most important benefit of the reward system is to motivate the employees because employee wants proper appreciation and reward against their work and also want that their work must be recognized and appreciated. So reward system is just a beneficial tool for organization that support the working and performance of organization and also its employees is feel very satisfied and happy by implementing such system. They are going to be motivated by obtaining reward against their efforts; they get more opportunities to enhance their skills and increase their experience and also explore their mental capabilities in better ways. And on other side the organization’s productivity going to increase due to excellent performance of the employees and also increase the return of the organization for the long term. (VanOrnum, 2019)

Conclusion on Reward system in organization

In the end of our discussion we can conclude that the rewards system is very important part of every organization. It helps in motivating the employee’s performance and also gives benefit to the organization in many ways. It’s the responsibility of the management that how to implement this system that give maximum benefit to its employees and enhance their performance and motivation. Because employee’s satisfaction and happiness is very much important for the organization and to get excellent results organization take special care for their employees and maintain their relationship in long terms.

Reference on Reward system in organization

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Mack, S. (2019). The Role of Rewards in Motivation. Retrieved from https://yourbusiness.azcentral.com/role-rewards-motivation-8266.html

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https://www.managementstudyguide.com/motivation_incentives.htm

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