Rewards System

Topics: Motivation, Reward system, Money Pages: 12 (3617 words) Published: June 15, 2013
ABSTRACTS

The purpose of this paper was to investigate and analyze how well the current reward system of Ambank helps generate employee work motivation. More specifically it aimed to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. Emphasis is put on Maslow's hierarchy of needs, the goal setting theory and the total reward system. The data was gathered with the help of a questionnaire and from the related journals. The aim of the research was to compare the different reward systems used in Ambank and find the advantages and disadvantages of the reward system that practiced by them. The research results revealed how Ambank can develop their reward system by including the employees in the decision making process. The research supports the assumption that a well developed and functional reward system can increase employee motivation and satisfaction.

TABLE OF CONTENTS
Page
SECTION 1

1.1 Introduction………………………………………………………………………….. 1 1.2 Important of the Rewards System………………………………………………… 2

SECTION 2

2.1 The various types of Rewards System………………………………………… 3-6 2.2The application of the Rewards System………………………………………. 7-9 2.3 Advantages and Disadvantages of Rewards System……….………………. 10-11

SECTION 3

3.1Recommendations ………………..………………………………………………. 12 3.2 Conclusion……………………………………………………………….……….... 13

BIBLIOGRAPHY………………………………………………………………………….... 14

Introduction

Reward Systems are important for any company as to attract and retain the employees. A reward system is defined as a structured method of evaluating and compensating employees based on their performance and achievement. The compensations and rewards are known as incentives to the employees. The incentives can be bonuses in pay or added vacation or sick days, among other things. Reward systems can help to boost company morale, as well as productivity levels which increase overall revenue for the company. However, there are a lot of negatives that can come with reward systems if not implemented correctly. Sometimes, instead of helping with the company morale, it can hurt it by making some employees feel insignificant if the same people are being rewarded over and over again. Reward systems can be tricky if not implemented and carried out correctly, but when used effectively, it can have a great positive impacts on the company and its employees.

Important of the Rewards System

Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. In fact, several studies have found that among employees surveyed, money was not the most important motivator, and in some instances managers have found money to have a demotivating or negative effect on employees. 

To ensure the reward system is effective and motivates the desired behaviors, it is essential to consider carefully the rewards and strategies utilized and ensure the rewards are linked to or based on performance. To be effective, any performance measurement system must be tied to compensation or some sort of reward. Rewarding performance should be an ongoing managerial activity, not just an annual pay-linked ritual. 

Types of Rewards System

Most organizations use different types of rewards. Examples of recognitions and rewards include money, plaques, trophies, certificates/citations, public recognition, official prerequisites, special assignments, parties or celebrations or other meaningful celebrations. The most common are wages or salary, incentive systems, benefits and prerequisites, and...


References: 1. http://mpowers424.files.wordpress.com/2011/03/hr_reward_systems.pdf
2. http://www.business.mmu.ac.uk/parc/2005/morris_maloney.pdf
3. http://cdn.intechopen.com/pdfs/37077/InTech-Improving_organizational_performance_through_reward_systems.pdf
4. https://gupea.ub.gu.se/bitstream/2077/21241/1/gupea_2077_21241_1.pdf
5. http://www.cipd.co.uk/nr/rdonlyres/8d84c1ad-0beb-4c78-98e6-124cfd0e44ac/0/9781843982630_sc.pdf
6. http://www.rudolfkremers.com/files/Chapter7.pdf
7. http://eprints.lse.ac.uk/25304/1/Designing_Effective_Reward_Systems.pdf
8. http://faculty.mu.edu.sa/public/uploads/1360857141.5855organizational%20cult150.pdf
9. http://www.gorschek.com/doc/start_files/Reward.pdf
10. http://webcache.googleusercontent.com/search?q=cache:g8PoTctcS5oJ:www.sciencedomain.org/download.php%3Ff%3D1359089754-
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