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The Objectives Of Rewarding System

The Objectives of Rewarding System

Human Resource (HR) consultant of Cheesy Pizza Company made the rewarding system with the obvious objectives. Which are; to give the employees some motivation, to attract potential employees and keep the existed-suitable employees, to influence culture (boost the innovation, participation, flexibility and entrepreneurship) and to reinforce and recognize the status and hierarchy of the employees (Tay, 2016).

The first one is to give the employees some motivation. In some cases, reward system has been proved to motivate employee’s performance. Employees ought to be rewarded according to their demand. Once the employees rewarded for their great job performance, they will enhance their work process, more and more. The impact of this reward system relies on the circumstance and the needs of the employees. Based on UK Essays (2015) articles, there are three variables that can influence the motivation effect by using reward system. Which are; attractiveness, performance-outcome expectancy and effort-performance expectancy.

Employees had different perception in the outcome of the reward system and it will lead to different attractiveness to the employees. For instance, some employees want to be promoted so they doing an outstanding performance while others might prefer the increases in their salary rather than the promotion.

The theory of the expectancy is proposed by Victor Vroom in 1964. Performance-outcome expectancy means that a person will get a covet outcome if the performance expectation is found. This result may come as a boost in salary, promotion, acknowledgment, or feeling of achievement. The employee’s motivation will be low when the outcome is equal for every conceivable level of performance. (Boundless, 2016)

From the Boundless (2016) website article, effort-performance expectancy is the theory that said an effort will bring out the fulfillment of wanted performance objectives. Generally, this conviction depends on an employee’s past experience, fearlessness, and the perceived trouble of the performance standard or objective. The components associated with the individual’s expectancy observation are the capacity, inconvenience of the objectives and control. This two-expectancy theory can help the managers understand how the employees can be motivated among the differences of employee’s behavioral.

The second objective is to attract the potential employees and keep the existed-suitable employees. Cash and benefits may bring people to the front door, however something else needs to keep them from going out the back. If the company wants to hire new employees, they need to give an interesting offer to the potential employees, if they found out the job is suitable for them and the ‘reward’ or the ‘compensation’ can fulfilled their need, they will sign up for the job. The higher the rewards, the more people who will attracted to the company’s job vacancy. And then, the individuals have an essential human need to feel acknowledge and glad about their work. In general, those companies which give the most rewards have a tendency to draw in and hold more people (Gerhart, Milkovich and Murray, 1992). This seems to appear because high reward level prompt to high satisfaction, which then prompts to lower turnover. As Riyuvaraj (2013) explained in his page, clearly this is correct by the fact that people who are shortly happy with their job hope to keep on being fulfilled and, accordingly, want to remain in the same organization. The reward system is need to be designed as effective as possible to keep the most valuables employees.

The third objective is to influence company’s culture (boost the innovation, participation, flexibility and entrepreneurship). The idea of culture has been determined and applied in a wide range of settings. Within this varieties of researches, Kerr and Slocum (1985) have possessed the capacity to distinguish three components common to the meanings of culture. The first one is about values, beliefs and assumptions. Second, this system of meaning offers ascend to a network of qualities, norms. Furthermore, behavioral desires that all the while gets from and supports a culture. And the third one, cultures are communicated through an assortment of symbolic, interpersonal, and basic appearances.

Reward system has been claimed to create a positive culture within the organization. It depends on how the organization handle, developed and administrated their reward system.

The reward system can impact the human resource arranged culture, entrepreneurial culture, inventive culture, ability based culture, unbiased culture and participative culture. Besides that, it can influence the correspondence, motivation and satisfaction of the workers as well (UK Essays, 2015). For instance, the workers will strive to accomplish their own value if their achievement are perceived the organization. Yet, if the organization treat all the workers similarly without any appreciation of their efforts, the greater part of the workers will tend to slack.

If the workers believe that the better behavior will prompt to better results, the workers feels that the reward is attractive enough to enhance their work and the company able to comprehend the needs of the workers it can be guaranteed that there will be a positive culture within the company which leads to better work (more innovation, more participation from employees, more loyalty, etc.)

The fourth one is to reinforce and recognize the status and hierarchy of the employees. The reward system of an organization can reinforce and recognize the structure of the organization (Lawler, 1990). Regularly this effect of a reward system is not completely considered in the plan of the reward system. Accordingly, their effect on the structure of an association is unintentional. However, it does not mean that the effect of the reward system on structure is negligible. It still has a big impact within the organization, at one point when individuals are compensated or rewarded in a similar way it has a tendency to join them, when they are deal with contrastingly it can divide them. Moreover, it can characterize the status hierarchy, and it can strongly affect sort of choice of structure which exists (Course Hero, 2016). The key in here is appear to be how much the reward system is hierarchical and how much is distributing compensates or rewards on the basis of developments up the hierarchy.

As Tay (2016) explained, reward system also help the company and the employees recognize the status of themselves. For instance, employees will get the non-monetary benefit such as joining club, have company’s car, etc. But for the CEO, they will get more offers from the company, such as an office space. This is where the employees will know what is their status is.

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