Reward Management

Employers and managers should recognize their employees and pay special attention to the best employee. And give awards periodically. This will encourage and motivate them to perform better. They can be presented with rewards for their hard work, sincerity, and dedication. Awards are also given for employees who have good attendance record.   At factories there are many types of rewards that employees can be awarded with i.e. for cleanliness in the shop floor, safety for no accidents for a given period, customer satisfaction, productivity, outstanding achievements, and suggestions.   The management of the performance and rewards by human resources is called reward management.  It is the duty of the Human resource department to track the records of employees for rewarding them in various areas.   It involves the analysis and effective control of employee remuneration, salary and other perks.

Rewards can be given in two types - Monetary and non-monetary.   Monetary rewards can be given in terms of cash, cheque, money order, drafts and the like, which can be readily converted into cash.   Non-monetary rewards consist of food coupons, meals, gift items, trophies, shirts, caps, mugs, travel bags, pen sets, electronics, radios, tools, etc.   

Management can also give rewards for project completion on time, suggestion for a new or modified business practice, good behavior, and teamwork, best employee of the month.   All it needs is consistency, fairness, and visibility.

The main purpose of rewarding employees is to retain good workers who work for the benefit of the organization and help in achieving goals set by the management.  Good managers always finds ways to bring out the best in employees and this can only be done by motivating employees through rewards.

Reward management also caters to rewards for sales and performance.  When sales personnel are rewarded it helps to increase the turnover of the company, which makes a company grow year by year.  Like rewards given to shop floor employees it is equally important to reward the sales team who bring in orders and collection.   Rewards may be given for sales personnel as “Best Salesman of the Month” or “Quarter” It is the responsibility of the Human resource department to monitor all types of rewards for various levels of personnel in an organization.

Review Questions:

• What is reward management?
• Is reward management required for the success of an organization?
• Who is responsible for reward management?