Reward is an important part of managing organization and the management of employees. It can be defined as an organization is ready to pay for to accomplish its strategic objectives. Therefore the review of reward system starts from understanding of organizational strategy and HR strategy supports this. Strategic reward objectives should be aligned with business objectives in the same way as other key business areas such as finance, marketing, administrating and IT.
In the broad way, there are two ways of reward such as tangible and intangible. The definition of these two rewards are in a way ambiguous as it could vary according to the viewers’ standpoints, but most of rewards can be classified as the tangible, which includes competitive salary, promotion, good benefits, incentive, better working environment, recognition awards and all other fringe benefits for higher performance. Whereas, intangible rewards is none monetary reward for high performance, not always requiring recognition of others in the workplace. Examples are when a sales manager gives the sales person recognition by a “pat on the back, send an appreciation e-mail and usage of bulletin board” to show appreciation for job well done.
In order to implement the reward system the most appropriate way, performance appraisal, evaluation, accomplishment rating should be done the most fair and objective way, but it is sometimes easier said than done. Due to the unfair or unreasonable evaluation, employees get depressed over the total reward system of the organization. In addition, the subjective appraisal is often taking place because of the managers’ personal preference or subjective views on some employees in particular.… Read the rest