Reward Management - Definition & Meaning
What is Reward Management?
Reward Management is adaptation of policies that reward employee on consistency, fair and equitable basis in line with organizational values. Rewards comprises of praise, challenging work, avenues for growth & development. Praise can be simple recognition for work in presence of other employees. Handling challenging assignment is also the indication of faith from management and act as reward for employee to give his best. Promoting employee to next level or sending somebody for next level training also act as reward for good work done by employee.
How to make rewards effective?
-Public Recognition
Rewards when presented in presence of peers or family members creates sense of achievement. Rewards given in front of peers are valued than anything else. Public display of rewards send out message across organization about what behaviours are valued at this organizations. Rightly emphasizing these behaviours will lead to most of people aligning themselves to it.
-Putting rewards on official records:
When name of person appears on official records of organization for achievers, it gives sense of fulfilment. Also it act as motivation for others and something they can strive for. As official records are there for years together, it creates high impact among peers.
Specific Reward:
Rewards should give for specific purpose or achievement. Without specific purpose or parameter, rewards won’t qualify to be effective. Specific rewards highlight what kind of performance gives excellence. These serve purpose of achieving specific performance goal.
All rewards can be divided into two categories:
Extrinsic Rewards:
These reward are aimed at satisfying fundamental need of recognition. It serves as hygiene factor for the need to be rewarded. This include base pay for performance, satisfaction of job security need.
Intrinsic Rewards:
These are the rewards that deals with non-monetary nature and form soft nature of motivation. These rewards are recognition, personal attention for development etc.
Hence, this concludes the definition of Reward Management along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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