Reward Management
REWARD MANAGEMENT
The purpose of offering rewards to employees is to recognise their achievements and contributions to the organisation. Employees may be rewarded financially, through recognition, praise or the opportunity to develop new skills (Armstrong, 2011). If implemented correctly rewards can enhance employees productivity, engagement and enthusiasm towards their role and the organisation. Research also suggests that offering rewards can increase motivation, innovation and problem solving. However, research also shows that offering intrinsic rewards can have a much more positive effect than extrinsic rewards. As noted by Mayo in the Hawthorne experiments, respect, clear communication and meeting the psychological needs of employees can have a much more positive effect on an employee’s motivation. Herzberg also contends that the only motivating factor involved in offering employees higher salaries, is that they will simply progress to seek higher. It is the belief of both Mayo and Herzberg, should an employer wish to get the most from their employees they must be willing to engage, challenge and allow for innovation to take place, even if it is at the lowest level.
As discussed in the previous chapter it is intended to implement job resign as a way of slowing down the rate of promotions. Included in this process is job enrichment. Job enrichment allows employees to be stimulated, inspired and responsible in their daily activities. It also takes into account Hertzberg’s hygiene and motivating factors which are believed to be key in employee satisfaction. Should the implementation of these three discussed pillars be successful it automatically encompass the development of further intrinsic rewards. Nevertheless should the organisation decide to incorporate this process into the finance department, there will be a clear need for change management processes to be developed. However, within the development of this process there is also scope for
The purpose of offering rewards to employees is to recognise their achievements and contributions to the organisation. Employees may be rewarded financially, through recognition, praise or the opportunity to develop new skills (Armstrong, 2011). If implemented correctly rewards can enhance employees productivity, engagement and enthusiasm towards their role and the organisation. Research also suggests that offering rewards can increase motivation, innovation and problem solving. However, research also shows that offering intrinsic rewards can have a much more positive effect than extrinsic rewards. As noted by Mayo in the Hawthorne experiments, respect, clear communication and meeting the psychological needs of employees can have a much more positive effect on an employee’s motivation. Herzberg also contends that the only motivating factor involved in offering employees higher salaries, is that they will simply progress to seek higher. It is the belief of both Mayo and Herzberg, should an employer wish to get the most from their employees they must be willing to engage, challenge and allow for innovation to take place, even if it is at the lowest level.
As discussed in the previous chapter it is intended to implement job resign as a way of slowing down the rate of promotions. Included in this process is job enrichment. Job enrichment allows employees to be stimulated, inspired and responsible in their daily activities. It also takes into account Hertzberg’s hygiene and motivating factors which are believed to be key in employee satisfaction. Should the implementation of these three discussed pillars be successful it automatically encompass the development of further intrinsic rewards. Nevertheless should the organisation decide to incorporate this process into the finance department, there will be a clear need for change management processes to be developed. However, within the development of this process there is also scope for
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