Hrm - Employee's Trust

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Introduction
Most of the time operations of an organization start with the development of business strategy that would underline company’s aim and goals and descries the way they are to be achieved. Moving on, the next step is to come up with Human Resource strategy that would match the business one and make sure workers act in a way that moves the company towards reaching the core goals. To achieve this people have to be motivated to perform their best in a day-to-day work activities. That’s where the company has to start thinking about reward systems (Balkin &Gomez-Mejia, 1987; Hambrick &Snow, 1989; Lawler & Jenkins, 1992a) A lot of scientific researchers and surveys have been conducted in order to find patterns in worker’s reactions to the practices of worker motivation executed by management. Having few similarities, the motivation factors that really influence the behavior of workers differ from culture to culture, from company to company, from employee to employee. The complexity of the task is increased by acceleration of scientific and technological progress. More intense market competition between companies made performance of Human Resource critical to the success/failure of the company. Thus, in order to keep up with the market trends and outperform the competitors, company has to make sure that the personnel is motivated to perform its best in daily business operations. One of the most difficult tasks of managing enterprise is to choose suitable method and strategy for Human Resource Management. This is first of all due to the complexity of human psychology. Having various goals, needs and wants every individual will respond differently to the way he/she is being managed, controlled and guided. Not only that, but things that inspire and motivate for better performance differed from person to person. Employee’s satisfaction or dissatisfaction, motivation or frustration will be reflected in the day-to-day job performance. Impacting the operation of the whole company, psychological state of workers determines whether organization will have a healthy organizational environment and be successful or collapse in the nearest future. The purpose of this paper is to discuss how reward system can assess organizational success. The paper will look at employee incentive scheme as one of the main tools for providing better motivation and higher satisfaction to the personnel. The structure of the study consists of an introduction, four sections and a conclusion. First section presents the basic definition and meaning of reward. Then it is important to elaborate on topic of employee motivation and its influence of organizational performance. Third section talks about the link between reward system and company’s success. Furthermore the paper will present different types of incentives and its impact on employees. Finally conclusion will be provided at the very end of the paper.

The concept and essence of Rewards
Literature review on the issue of incentives worldwide showed that this topic has had a significant amount of research attempts (Mobley, 1982; Hand, Meglino & Griffeth, 1979; Bloom & Milkovich, 1998; Becker & Huselid, 1998; Jesuthasan, 2003; Combs, Ketchen, Hall, & Liu, 2006; Boulter, 2009; Deborah D Voyt, 2011;). Provided below are several definitions of the term “incentive”, that will give a better understanding of the topic. In business context incentives are also known as ‘rewards’. Very often reward systems are being identified as ‘major systems in an organization that needs to be driven by the strategy and aligned with the other systems’ and argued to be the determinant of the ‘degree of alignment that determines how effective an organization actually is’ (Lawler & Jenkins, 1992b). By definition from Cambridge Dictionary incentives are created in order to ‘encourage a person to do something.’ Thus, when developed and managed correctly incentives aimed to motivate and encourage workers to ‘create a...
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