Republic of the Philippines

SOUTHERN LEYTE STATE UNIVERSITY SAN JUAN

San Juan, Southern Leyte
GRADUATE STUDIES
San Juan External Learning Center
Name : Adalia Buta

Course&Year : Master in Management 1

September 21, 2015

Unit IV Rewarding Human Resources

Among four Ms, i.e Men, Material, Machine and Money, Men has been most
important factor, it is impossible to imagine a business process without Men. So, it
now the HR's role to determine the level of salary and benefits for a position or
employee to attract, engage, motivate and retain employees. Compensation,
employee benefits and services, rewards and incentives and Reward system plays
vital role in a business organization.
Compensation is any form of payment made to an individual for services
rendered as an employee for an employer; services performed as an employee
representative; and any separation or subsistence allowance paid. The money
receive by an employee from an employer as a salary or wages. Compensation is
an organizations key in attracting staff, retaining staff, motivating Staff, driving
changes, corporate reputation, affordability, employee objectives, purchasing
power, fairness, recognition, composition
Reward is the oil of the entire Human Resource process shields It is
concerned with the formulation and implementation of strategies and policies that
are to reward people fairly, equitably and consistently in accordance with their
value in the organization. Other components of reward system including: a)
Organization Strategy b) HR Strategy c) Pay and Grade Structure d) Performance
Management e) Total Remuneration. The main objective organization give rewards
to the employee is to attract, maintain and retain, good, efficient, motivated and
high performing employees.
Type of rewards and employee incentives includes money, gift cards,
property, medical coverage, promotion to new position, increment, grades,
performance based incentives, employee recognition, protection programs, profit
sharing, overtime and holiday packages.
The most effective reward and compensation systems align with objective,
outcome-based evaluations of employee performance. Each employee's
performance measurement should reflect the organization's business strategy and
final Compensation should also reflect the employee's performance level and his or
her contributions to the organization's success.

Approaches to do includes: 1. Reflect an employee's performance and

contributions 2. Improve employee and customer engagement 3. Increase
productivity 4. Focus employees on clear, objective, and measurable outcomes 5.
Link to the organization's strategic direction and business goals 6. Reward
employees who achieve results. With this approaches its expected the relationship
between employees and employers to be stronger and maximization of employees
performance