Figure 1:reward; source: (Francis, 2015)

Reward  management in HRM

Introduction

Reward management is the implementation of rules and techniques that reward every employee in an organization fairly and uniformly. Rewarding workers for exceptional performance helps them feel appreciated and may be an effective motivating strategy that increases productivity. The most effective incentive management programs give employees with possibilities for advancement and enable employers to recognize (davidsonMorris, 2021). In today's society, workers have access to a variety of benefits, including salary, bonuses, and long-term incentives. A company's human capital strategy must include an effective compensation plan.

The aims of reward management

People should be rewarded in accordance with the value they generate. The practices of reward should be aligned with the aims of the company as well as the requirements and values of the employees. Reward the appropriate behaviors and outcomes in order to provide the appropriate message about what should be emphasized in terms of behaviors and results. Contribute to the organization's ability to recruit and retain the high-quality employees it requires. People need to be motivated, and need to get their participation and dedication. To create a culture that values high performance (Armstrong, 2007).

Elements of reward system 

Figure: Elements of reward; source: (Armstrong, 2007)

 

Benefits of the reward management in organization

Reward systems benefit both the employee and the organization. By using a reward system, employees will be more encouraged to work hard and their production will rise. The company benefits from increased productivity. Reward systems benefit both the employee and the company. A reward system will drive individuals to attain milestones and organizational goals. A reward system motivates people to work hard and prove themselves. A incentive system will minimize absenteeism in the company. If workers are recognized for a job well done, they are less inclined to call in sick and miss work. By having a compensation system in place, workers will be clearer about the organization's aims and ambitions. So a reward system will reduce absenteeism. Reward systems improve employee loyalty to the company. By having a reward system, employees feel appreciated and know their input is heard. If an employee is delighted with the incentive system, they are more likely to enjoy their job and stay loyal. A reward system that gives staff incentives and recognition boosts morale. By motivating staff to fulfill objectives and targets, morale is boosted. By boosting staff morale, the company's will rise. A company's incentive system is to blame. Teamwork - The incentive system will boost company teamwork (Francis, 2015).

Conclusion

In companies, people are hired to fill job gaps so they may fulfill organizational objectives and maintain their living circumstances. Rewarding and incentivizing employees motivates them to do a good job and achieve corporate objectives. Reward systems improve work performance, retain valued personnel, and help the business grow. Reward management requires a reward philosophy, distributive justice, procedural justice, fairness, equity, consistency, transparency, strategic alignment, contextual and cultural fit, fit for purpose, and a high-performance culture. Reward management must account for numerous rules and practices. These are needed to coordinate reward management.

References

Reward Management: Best Practice Guide | DavidsonMorris (2021) DavidsonMorris. Available at: https://www.davidsonmorris.com/reward-management/ (Accessed: November 28, 2022).

Francis, A. (2015) The Importance of Reward Management - MBA Knowledge Base, MBA Knowledge Base. Available at: https://www.mbaknol.com/human-resource-management/the-importance-of-reward-management/ (Accessed: November 28, 2022).

armstrong, M. (2007) EMPLOYEE REWARD MANAGEMENT AND PRACTICE. 2nd ed, London and Philadelphia. 2nd ed. London, Philadelphia: First published in Great Britain and the United States in 2005 by Kogan Page Limited Second edition 2007, p. 4. Available at: https://chools.in/wp-content/uploads/2021/03/EMPLOYEE-REWARD-MANAGEMENT-AND-PRACTICE.pdf.

mycred. me (2020) How Reward System Works In Human Resource Management, myCred - Free WordPress Reward, Badge, Loyalty & Points Management Plugin. Available at: https://mycred.me/blog/how-reward-system-works-in-hrm/ (Accessed: November 28, 2022).