Reward System in Public Organization

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SUBMITTED BY Lt Col Abid Samih Aslam
Student of MS- BA Roll NO Jan 10- 025

SUPERVISOR: Dr Irfan Zafar

National University of Modern Languages

This article is focused on the under standing of difference of pay and reward system in public and private sector. Few organizations of public and private sector have been analyzed . Article covers These aspects:- ➢ Need of better pay and reward system for the progress and performance of public organization ➢ Identification of existing problems in pay and reward system of public sector. ➢ Application of important rules and procedures of successful private organizations on public sector.

Pay and Rewards play very important role for employee motivation, satisfaction and better performance in the organization. It is also very helpful to create a dynamic environment of learning, personal development, career management and rather peace and harmony in the organization.

Current pay and reward system being used in government and public organizations is quite old, rigid and obsolete. It does not fit into new business environments and real market. It does not provide requisite motivation and incentives specially to lower rank employees.

Although current pay and reward system have been revised occasionally by different organizations but it only emphasize on pay and allowances and other long term financial rewards of tangible origin and does not cover intangible benefits which are necessary for progress of organizational image and value.

So this pay and reward system being used in these organizations is considered luxury for top management , higher authorities and officers. Lower grades and ranks considered them selves as personal sub servant of officers rather than the organization.

Need For Better Pay And Rewad System

Over all very slow economic growth in the country and also augmented with the nationalization policy of ex Prime Minister Zulfiqar Ali Bhutto not only destabilized the country but also roll back good governance and other good practices in the public organizations. Therefore a natural market based development of organizations stopped and performance declined.

However after privatization there is lot of change and development in those organizations which are gone to civil sector. New management and reward system specially developed in private banks, telecommunication and education sectors became a role model for other organizations. New concepts of intrinsic motivation, empowerment and employee involvement have been adopted which brought a triggering change in these organizations.

Old system of pay and allowances have been revised and pay is linked with the employee performance and commitment1.

However on the condition of government and public organization is still on back track and no positive change is observed . Take the example of Steel Mill, PIA , WAPDA and other government and public banks and educational institutions. All these organization demand a big cultural change including a new system of pay and rewards to improve the efficiency of organizations.

Study of 10 different renowned public and private organizations was carried out . Few observations as identified on pay and reward system of public organizations are elaborated as under: -

Rigid Pay and Reward Policy

The rigidity in the rules on pay and benefits had long been a handicap in the public sector. Implementing a variable remuneration that is common in the private sector has not been easy. In many areas of the public sector, the same tools for a compensation and benefits policy have not changed for the past 10 years. Salaries are tagged mainly to seniority and imply that niche skills and talents will be rewarded according to pay grades that may not reflect the value of their skills....
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