Reward Management Assignment Help
People are the most important asset that any organisation has and how well an organization manages its workforce that decides how well the organization achieves its organizational goals and make the whole business profitable. In the existing scenario, it is quite clear that the companies are finding it hard to retain the talent. It is quite a disheartening sight to see an employee who has been trained and nurtured well leaves to another organization. Thus, employee retention has become one of the keys to the whole process (Gellman, 2009). HR departments in various organizations have been proactive in determining how to nurture talent and retain them in the organization. It is here where the importance of reward management comes into play.
Reward management is a management process that is being adopted by many organizations to understand the roles that a particular employee is expected to perform in a particular organization and then measure the effectiveness with which a particular work is being performed by the employee. Based on the performance indicators, they have to design a reward management system so as to stimulate them to perform better and thus align them to the overall organizational goals. Thus, in a nutshell, it determines the motivational factors that can stimulate the performance of an organization and then design their pay in such a manner that can be motivating them to work towards the organizational goals. In most of the organisations, the link between both the fields is made strong, i.e. the reward management is designed closely following the motivational factors of various employees and it has been seen that in many organisations where they have been kept separate, the effectiveness of reward management systems has been poor thus resulting in high employee attrition, low morale amongst the employees and high employee dissatisfaction (Druker, 2005).
Human Capital as mentioned above is the most important factor in any organization and it is essential that the employees get a sense of belonging to the organization and this is possible only if there is a cordial relationship between the employees and the employers. If the relationship between the two is good then the employees start taking ownership of the work that they do and thus, in effect, this would result in better performance of the employees and the organization as a whole. This is because of the fact that productivity increases have been seen in organizations that had good reward management systems in place.
Before going any further, let us first describe reward management. It is a process followed in any organization which involves development, implementation and monitoring of a systematic program which aims at motivating the employees of the organizations by means of rewards based on their performance in the organization. Thus when you look at a broader perspective we can say that reward management is the measure that is used by the companies to grade the employees and then reward them for their valuable contributions to the company which would improve the productivity and overall efficiency of the employees (Lloyd, 2008). The HR department has to ensure that when they design the reward management program for a company or a department, it should be equitable and consistent across all the employees so that they feel that such a program actually is meant for the benefit of the employees.
1.1 Research Aims
The research aims at understanding the role of reward management in the productivity and performance of the employees of an organization. It identifies various factors that stimulate the employees and motivate them to perform better under the given situation. It also aims at understanding ways in which the high performers can be retained in the organization which can help the organization reduce the costs and at the same time grow over a period of time. Finally, this research aims at understanding the importance of reward management in the overall development of the organization and how by nurturing the available pool of talent, the organization can gain a sustainable competitive edge over others in the market.