A presentation on rewards management, meaning, definition, process, pros and cons, some theories in the context of rewards management, digitalization in rewards management
2. TABLE OF CONTENTS
• MEANING & IMPORTANCE
• TYPES & EXAMPLES
• STRATEGY
• PROCESS
• DIGITALIZATION IN RM
• PROS AND CONS
• TIPS TO IMPROVE RM
• CONCLUSION
3. z
Rewards & Reward Management
“Reward refers to all the monetary, non- monetary and
psychological payments that an organization provides for its
employees in exchange for the work they perform.” (Bratton &
Gold,2007)
Reward management is defined as “the process of formulating
and implementation of strategies and policies that aim to
reward people fairly, equitably and constantly in accordance
with their value to the organization.” ( Armstrong & Murlis,
2004)
“Reward management deals with the strategies, policies and
processes required to ensure that the contribution of the people
to the organization is recognized by both financial and non-
financial means.” (Michael Armstrong, 2010)
What it brings?
• Consideration of value
• Fulfill common goals
• Focus on behavior and
outcomes
• Attract & retain quality
employees
• Motivate employees
• High Performance culture
5. z
.
• EXTRINSIC REWARDS: Mainly come from outside sources.
Ex: management and focuses on optimum utilization of human resource and maximizing productivity.
• INTRINSTIC REWARDS: Outcomes of personal satisfaction of individual
Ex: job satisfaction, high level of motivation of employees.
• FINANCIAL REWARDS: enhance the financial wellbeing of employees some monetary rewards are given.
They are tangible and fulfill the financial need of employees.
• NON-FINANCIAL REWARDS: fulfill the psychological needs of employees and increase more attraction to
life on job. They are intangible in nature.
• PERFORMANCE BASED: strategy to provide the rewards to employees on the basis of their performance.
It encourages the competition among employees.
• MEMBERSHIP BASED: strategy to provide the incentives to employees on the basis of team performance.
Every member of the team gets equal reward in terms of incentives.
12. Technology In Reward Management
RECOGNITION
E-MAILS
CERTIFICATION
TRAINING
WORKSHOPS
EVALUATION
&
APPRAISALS
REMUNERATION
13. • ENCOURAGE RETENTION
• RECOGNITION TO EMPLOYEES
• TEAM CONCEPT
• MOTIVATION
• EASY TO MAINTAIN RECORDS
• ACCESSIBILITY
• ONLINE CERTIFICATIONS
• REDUCING COST
• RESOURCE MANAGEMENT
• OUTDATED THEORY OF
MOTIVATION
• INCREASING EXPENSES OF
ORGANIZATION
• LACK OF LONG TERM BENEFIT
• EXPECTATION OF EMPLOYEES
• BIASNESS
• PRONE TO MISUSE
• LACK OFDURABILITY/ VALIDITY
• LEGALITY ISSUES
• UNHEALTHY COMPETITIVENESS
14. Tips For Designing An Efficient Reward System
• Underlying principles must be clearly defined.
• Different components should complement each other and
align with organization’s goals.
• Opinion of the stakeholders must be kept in view.
• Neither the system, nor any part of it should be
complicated or confusing.
• Regular employee feedback would provide for the required
tweaks.
• Regular review and appraisal must be done.
(Armstrong, 2010)
15. CONCLUSION
Reward management plays a vital role in the success of an organisation. To satisfy
employees, employers have to ensure that the reward schemes are structured
according to the needs of the employees so as to satisfy their various motivation
factors. Once an employee’s motivation factors are being met they will be more willing
to stay with the organisation.
16.
17. • Armstrong, M., & Murlis, H. (2004). Rewards Management: A Hand book of Remuneration Strategy and
Practice Clays Ltd. St Ives plc.
• Armstrong, M. (2010). Armstrong's essential human resource management practice: A guide to people
management. Kogan Page Publishers.
• Bratton, J., & Gold, J. (1999). Human Resource Management Theory and Practice. Hampshire and London:
Mcmillan Press LTD.
• Essays, UK. (2018). The concept and definition of reward management essay. UKESSAYS, retrieved on
February 2, 2020 from https://www.ukessays.com/essays/management/the-concept-and-definition-of-reward-
management-essay.php?vref=1
• Tripathy, S. (2014) Compansation management. SlideShare, retrieved on February 1, 2020 from
https://www.slideshare.net/ShyamasundarTripathy/compensation
• Upreti,S.(2016). Reward management. SlideShare. retrieved on February 1, 2020 from
https://www.slideshare.net/crypticsaroj/reward-management-65349693
• Herzberg’s Two Factor Principles: Also Known as Motivation Theory, given by him in 1959.
• Adams’ Equity Theory: John Stacey Adams, a workplace and behavioural psychologist, who developed his job
motivation theory in 1963.
• Goal Theory: In 1968, Edwin A. Locke published his Goal Setting Theory in Toward a Theory of Task
Motivation and Incentive
• Maslow’s Hierarchy of Needs: Theory in psychology proposed by Abraham Maslow in his 1943 paper "A
Theory of Human Motivation" in Psychological Review.
REFERENCES:
Herzberg’s Two Factor Principles: Also Known as Motivation Theory, given by him in 1959.
Adams’ Equity Theory: John Stacey Adams, a workplace and behavioural psychologist, who developed his job motivation theory in 1963.
Goal Theory: In 1968, Edwin A. Locke published his Goal Setting Theory in Toward a Theory of Task Motivation and Incentive.
Maslow’s Hierarchy of Needs: Theory in psychology proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation" in Psychological Review.
Outdated Theory Of Motivation: A 2019 Harvard Business Review study found that one of the top reasons why good employees begin to fail is a belief in their lack of self-efficacy (that they aren’t able to complete their work).
