THE PRACTICE OF REWARD MANAGEMENT

Reward management is concerned about the strategies, policies and practices required to guarantee that the estimation of individuals and the commitment they make to achieve organizational, departmental and team goals is perceived and rewarded. It is about the design, usage and maintenance of reward systems that aim to fulfill the needs of both the organization and its stakeholders and to operate fairly, equitably and consistently. Reward management manages non- financial rewards, for example, recognition, learning and development opportunities and expanded job responsibility and in addition financial rewards. (Armstrong and Taylor, 2014)

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Employees should be known about the relationship between how they perform and the rewards they get. Organizations should apply performance management programs which assist with planning employee performance, monitor performance by effecting legitimate measuring tools rewards should to be utilized as a method for strengthening good behavior among employees as well as productivity. Hence reward systems should focus on reinforcing positive behavior. Employees could be rewarded for working overtime, stepping up, team work, reliability, exceptional attendance, outstanding client feedback, meeting deadlines or timeliness, productivity. Employers and managers should then design or come up with a system to measure or evaluate every one of these aspects so that rewards are then given accordingly. (Njanja et al, 2013)

The most common practice was to calculate the costs related with the programme and to discuss about casually the effects on bottom-line performance. The relatively little extent of organizations which evaluated base or variable pay particularly utilized attracting in new workers, time to fill positions or effect on employee retention as criteria for base pay and impact on incomes, profits and total assets and effect on productivity or cost savings funds for variable pay. (Armstrong, Brown and Reilly, 2011)

INTERNATIONAL PRACTICES

BP s exploration division appraises and rewards employees based on a skills matrix. Wegmans is a retail food sector, reward policies of Wegmans aim to draw employee dedication on the work. Hotel Paris knew they had to institute a new, strategic compensation plan. They wanted a plan that improved employee morale, contributed to employee commitment, reduced employee turnover, and rewarded the sorts of service-oriented behaviors that boosted guest satisfaction. (Dessler, 2012)

CONCLUSION

Employees should have a clear line of sight between what they do and what they will get for doing it; the rewards are worth having; reasonable and consistent means are accessible for measuring or evaluating performance, competence, commitment or skill; individuals must have the capacity to influence their performance and the reward should as closely as possible the accomplishment that produced it. (Armstrong, 2009)

REFERENCES

Armstrong, M. (2009) Armstrong’s Handbook of Human Resource Management Practice, 11^th edn. London and Philadelphia: Kogan Page.

Armstrong, M. and Taylor, S. (2014) Armstrong’s Handbook of Human Resource Management, 13^th edn. London: Kogan Page.

Armstrong, M., Brown, D. and Reilly, P. (2011) 'Increasing the Effectiveness of Reward Management: an Evidence-Based Approach', Employee Relations, 33(2), pp. 106-120.

Dessler, G. (2014) Human Resource Management, 13^th edn. Boston: Pearson.

Njanja, W., L., Maina, R., N., Kibet, L., K. and Njagi, K. (2013) 'Effect of Reward on Employee Performance: A Case of Kenya Power and Lighting Company Ltd., Nakuru, Kenya', International Journal of Business and Management, 8(21), pp. 41-49.