Reward Management

 

Reward management 

R

eward management is concerned with the strategies, policies and practices required to ensure that the value of people and the contribution they make to achieving organizational, departmental and team goals is recognized and rewarded. It is about the design, implementation and maintenance of reward systems that aim to satisfy the needs of both the organization and its stakeholders and to operate fairly, equitably and consistently.

 

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As Ghoshal and Bartlett (1995) pointed out, reward management is there to add value to people. It is not just about attaching value to them. Its aims are to:

1.Reward people according to the value they create by providing for them to be

recognized and paid in accordance with the degree to which they meet or exceed

expectations.

2.Support the achievement of business goals by helping to ensure that the organization has the talented and engaged people it needs.

3.Promote high performance by ensuring that the reward system recognizes and

encourages it.

4.Support and develop the organization’s culture by linking rewards to behaviour

that is in line with core values.

5.Define the right behaviours and outcomes by defining expectations through performance management and merit pay schemes

 

Reward evaluation is a necessary way of improving reward management effectiveness. It is a way of thinking based upon obtaining answers to the following questions posed by Armstrong et al (2010: 101):

a. What are we trying to do here, what’s important to this organization, how do we measure that?

b. How are current reward practices helping or hindering what we are trying to do and what evidence do we have of this?

c. How might reward changes improve the delivery of the desired outcomes?

d. How can we best implement improvements and how can we show ourselves that they are working?

 

Conclusion

Essentially, the notion of total reward says that there is more to rewarding people than throwing money at them. For O’Neal (1998), a total reward strategy is critical to addressing the issues created by recruitment and retention as well as providing a means of influencing behaviour: ‘It can help create a work experience that meets the needs of employees and encourages them to contribute extra effort, by developing a deal that addresses a broad range of issues and by spending reward dollars where they will be most effective in addressing workers’ shifting values.

 

 

References

Ghoshal, S and Bartlett, C A (1995) Changing the role of top management: beyond structure to process, Harvard Business Review, January–February,

Armstrong, M, Brown, D and O’Reilly, P (2010) Evidence-based Reward, London, Kogan Page

https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/ARMSTRONGS%20HANDBOOK%20OF%20HUMAN%20RESOURCE%20MANAGEMENT%20PRACTICE/46%20-%20Reward%20Management.pdf

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