Submitted To Lect.Mr.A.B.

Mathur

Submitted By Satuti Sonia Lata Kumari

Reward management is about the development,implementation,mainte nance,communication and evaluation of reward processes.these processes deal with the assessment of relative job values,the design and management of pay structures,performance management,paying for performance,competence or skill(contigent pay),the provision of employee benefits and pensions,and management of reward procedures.

High performance and productive contributions towards attaining the goals and objectives of the organisation by individuals and teams are recognised and rewarded. Teamwork and efforts to eliminate internal competition are encoursged by recognizing and rewarding successful practices. Clear and specific performance improvement objectives are included in performance management and reward system. Promotion criteria include the action and activities create and sustain competitive advantages by organisations. Develop a positive employement relation and psychological contract. Align reward practices with business strategy of the organisation and communicate

TYPE

DESCRIPTION

EXAMPLES

CASH AWARDS

Programmes that provide either a fixed cash award or are based on a percentage of the employees pay.

Lump sum bonus Cash incentive Additional paid time off Paid trips Gifts Specialised training Movie tickets Paid meals Flowers Ticket to special events

SPOT PROGRAMME

Recognition programmes that have low or minimal cost and do not require a formal plan document or extensive administration.

SYMBOLIC AWARDS

Recognition programmes designed to provide a tangible award or memento.

Quality award Service award Recognition Certificates Trophies Thank you card Testimonies from senior leadership Customer feedback Written congratulations Public recognition 4

VERBAL RECOGNITION

The approach provides praise directly to the individual or team.

Rewards

Intrinsic versus Extrinsic

satisfactions) come from the job itself, such as: pride in ones work feelings of accomplishment being part of a work team Extrinsic rewards come from a source outside the job include rewards offered mainly by management Money Promotions Benefits
5

Intrinsic rewards (personal

Financial rewards include:

wages bonuses profit sharing pension plans paid leaves purchase discounts

Non-financial rewards emphasize

making life on the job more attractive; employees vary greatly on what types they find desirable.
6

Performance-based rewards are

tied to specific job performance criteria.It includes commissions Piece work pay plans Incentive systems group bonuses Membership-based rewards such as cost-of-living increases, benefits, and salary increases are offered to all employees.
7

There are ten drivers to develop Reward Oriented Performance Management as follows:1.Setting objectives 2.Tracking past and present 3.Determination and application of methodology 4.Determining components 5.Determing the monetory reward 6.Design reward system 7.Communicating about the reward strategy 8.Implemenation of reward strategy 9.Evaluating reward strategy 10.Refining reward strategy

1.Develop list:- A list of all reward the organisation offers to the employees should be developed and compiled.The rewards should then be categorized as monetary and non-monetary.

2. Comprehend rewards:-How financial and non-financial rewards will

influence an employees performance should be comprehended.

3.Benchmark reward:-Conduct a survey of the employees to find out how they

perceive each reward in terms of value and equity.

4.Value proposition:-Rewards identified for administration to employees should

be of reasonable value.

5.Different approaches:-The oraganisation should try to vary the

compensation,try to have both individual and group based reward .

6.Performance expectations:-The performance expectations should be kept easy

because they can be complicated to measure and also time consuming.

7.communication:-Employees should be continuously informed about the reward

system.

8.Review reward system:-Reward system designed should be periodically

reviewed for improvement and effectiveness.

Performance management
Expectancy relationship Effortperformanc e Performanc e-reward Rewardpersonal goals

Individual performance
Experiences Meaning fullness of work Responsibility of work outcomes Knowledge of results Outcomes Increased skill variety Enhanced task identity Reinforced task significance Increased autonomy Open feedback

Equity
Comparison
Self -inside Self outside Other-inside Otheroutside

Better Performance Valuable Rewards

M o T I V A T I O n

This theory postulates that individuals are concerned not only with the absolute amount of rewards they receive for their efforts,but also with the comparison of this amount to what others receive. Equity theory states that employees make comparisons of their job inputs and outcomes relative to those of others. Employees perceive what they get from a job situation(outcomes)in relation to what they put into it(inputs),and then compare their outcome /input ratio with that of relevant factors. There are four referent comparisons an employees can use are:Self-inside Self-outside Other-inside Other-outside

The assumptions of expectancy theory are as follows:

People make conscious decisions about their own behaviour in organisations,especially with regard to the amount of effort they are prepared to direct towards performing their jobs.
Different people have different attitudes and orientations towards work,which are expressed as different needs,desires,and goals,and which can be systematically analysed. People makes choices between the possible alternative modes of behaviour of which they are aware.they consider the degree to which a particular course of action will lead to outcomes they desire,or at least which they think are likely to lead to such outcomes. Essential to understanding human motivation in work organisations is the need to discover the different meanings people attach to work and their working environments.

Individual Reward System Team Reward System

Under this approach,individuals are rewarded based on their individual performance,contributions and results. Employees exhibiting better performance tend to get better financial rewards and nonfinancial rewards.

A team can be described as a group of individuals working together for the same goals and objectives.under this approach,entire group of employees is rewarded instead of one individual. This encourages teamwork and employees collaborate more frequently with each other to attain the organisational goals and objectives. In other words,organisations collective performance improves due to teams getting rewarded for their accomplishments.