Reward Management Essay Example | Topics and Well Written Essays - 3000 words

Reward Management - Essay Example Employees in present times are no longer satisfied with mere cash-based rewards (Dewhurst, Guthridge, and Mohr, 2010). They are increasingly seeking alternate sources of reward mostly non-financial such as recognition of their work and contribution made towards organizational success, health benefits, policies that enable them to strike a perfect work-life balance, positions of authority that enable them to exercise control and take risks to accomplish challenging objectives, etc among others. Motivating such diverse and talented pool of human resources has hence become highly challenging for the organizations. They are now compelled to reassess their reward management strategies and revise them in accordance with the changing demands of the industry, and include novel strategies that appeal to the individual tastes and preference of their employees. This includes initiating organization wide changes in the management styles, re-organizing the design systems, and incorporating the principles of transparency and fairness, by seeking active participation of employees in the reward design process. The rules of the workplace have evolved during the last couple of decades and the realities of yesterday no longer hold true in present times. The drastic change brought about by information technology, globalization, and expansion of the marketplace has entirely changed the rule of the game. Organizations today are no longer chasing customers but are also compelled to come up with innovative strategies to retain their skilled pool of human resources. Employee retention through implementation of motivational reward oriented strategies has assumed a top priority for the management. This paper on reward management discusses the various issues concerned with performance oriented pay structures, including the effectiveness of rewards on employee performance, the relationship between non-financial rewards and employee performance, the application of flexible reward policies, impact of non-financial rewards, the relevance and significance of integrated approach to total reward, and the issue of employee entitlement trap. 2. Relationship between rewards and performance: Various studies have indicated that there exists a strong relationship between rewards and employee performance (Guzzo et al., 1995; Jenkins et al., 1998; Hansen, 1997; Stajkovic & Luthans, 2001). Employees play a key role in enhancing the organizational performance. Hence it is imperative for organiz ations to ensure that the employees are appropriately rewarded for their contribution towards organizational development through an effective reward framework. The significance of effective reward management strategies for organizations can be ascertained by the fact that rewards help the management in preventing employee burnouts and provides them with adequate strength and motivation to address the various challenges encountered on the job (Schaufeli et al., 2002). It has been observed that employees are often subject to severe stress. This is particularly evident in service industries such as banking and the hospitality sector where the employees are directly in touch with the customers. Consumers today are getting more and more demanding