Employee Reward System

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Employee will give their maximum when they have a feeling or trust that their efforts will be rewarded by the management. There are many factors that affect employee performance like working conditions, worker and employer relationship, training and development opportunities, job security, and company’s overall policies and procedures for rewarding employees, etc. Among all those factors which affect employee performance, motivation that comes with rewards is of utmost importance. Motivation is an accumulation of different processes which influence and direct our behavior to achieve some specific goal (Baron, 1983). Training practices used by organizations may have an effect, direct or indirect on both employee motivation and organizational commitment (Meyer and Allen, 1991). Organizational commitment is defined, in the words of Pool and Pool (2007, p. 353) as the relative strength of an individual’s identification and involvement in a particular organization”. In order to equip their employees with the skills necessary to do their job, companies train them, in an effort to optimize their workforce’s potential. Some companies, planning for the long-term, invest in the development of new skills by their employees, so as to enable them to handle issues not currently present, but likely to come up in the future. This kind of training can lead to high levels of motivation and commitment by the employees, who actually see the opportunity they are given. These employees’ appreciation for the investment their organization is making in them, is shown in their hard work and their contentment in being a member of that organization. Training, then, is expected to have a positive impact on both motivation and employee commitment.
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