Affect of Reward Package on Performance of Employee Assessment Answer
Research Topic: STRATEGIC REWARD MANAGEMENT
Research Title: How can a reward package affect the performance of an employee in an
This proposal will discuss the strategic reward management process within the organization and its importance to improving the performance of the organization and employees as well. It will review the literature to demonstrate the benefits of the reward management process within the organization. It will use the secondary data collection method and qualitative analysis method to collect in-depth information about this topic.
This proposal will discuss the usefulness of strategic reward management. In this assignment, it will discuss that in which process the reward management process inspires the employees and improve their performance level. At first, it will demonstrate the problem statement of this chosen topic. It will develop the research questions based on the entire reward management process within the organization. Secondly, it will critically review the literature based on the reward management process to clarify the benefits of the reward management process. Finally, it will discuss the usefulness of the secondary data collection method based on the critical review of the strategic reward management process.
This proposal will discuss the benefits of reward management within the organization. Reward management is the implementing process of the business strategies and business policies to provide a reward to the employee in the organization. It is the process of rewarding the employees fairly and equitably based on the employee’s value and performance within the organization. A system of reward management is important for motivating the employees to execute their tasks efficiently and effectively that helps them to achieve their professional and personal goals as well. It helps in increasing the productivity of the organization (Okeke et al., 2020). It is quite important within the organization culture, either it can demotivate the employees that may reduce the productivity power of the entire organization. However, this is the main reason that this reward management process needs to research through the review of the literature by various authors.
To examine and analyze how a reward package affects the individual employee’s performance in an organization.
The following are the research questions based on the organization reward management process that will answer in the future project.
- How reward management process creates an effect on the performance of an organization’s employee?
- How the reward packages motivate an employee within the organization?
- How reward packages increase the productivity of the organization?
- How the reward management processes help an employee to achieve their personal and professional goal?
According to the review of the literature by Teimouri et al., (2016), the reward management process is related to the relationship between the effectiveness of the organization and employee engagement. The rewarding system within the organization increases the engagement of the employees. It increases the absorption of employees and employee retention. It increases the job satisfaction level of the employees that directly influences the employee engagement level within the organization (Gilani and Cunningham, 2017). It increases the efficiency of the employees in their everyday activities that influence organizational effectiveness (Okeke et al., 2020). According to this literature, the organization should consider its employees as internal customers and key stakeholders and should reward them through various techniques. It increases business productivity and the performance of the organization. According to the literature by Hoole and Hotz (2016), a reward management system is the process of motivating an organization’s employees to raise the engagement of the employees within the organization. Effective reward packages influence effective employee engagement that increases the exchange of relationships between employees, the exchange of hard work, and extra effort (Matolo et al., 2019). It motivates them for working in the organization for long hours. It helps them to feel appreciated and valued. It helps the employees to develop a direct correlation between the effort of the employees and receiving rewards in the respect of the effort. According to literature by Antoni et al., (2017), there are two types of reward packages for the employee by which the organization wants to motivate their employees in an effective way. Intrinsic reward packages include non-financial rewards such as recognition, promotion, job security, etc. Extrinsic reward packages include financial rewards such as bonuses, wages, etc. Managers of the organization raise the employees’ motivation by giving opportunities to the employees to make their own choices and decisions to complete and execute their tasks and achieve their long-term objectives, goals and short term objective and goals (Festing and Tekieli, 2018). Based on the performance of the employees, the organization provides employees with extra financial benefits, bonuses, and extra wages to increase their motivation level. According to this theory, the reward packages increase the motivation level among the less encouraged people. The proper career development opportunity, work quality, the culture within the organization, balancing between the work-life and personal life, and effective leadership all are related to the reward packages that influences the employee engagement level. The effective engagement of employees increases the productivity of the organization. According to the review of the literature by Lee (2019), the reward management system of the organization is related to the expectancy theory of motivation. This theory states that the real motivation of the employees depends on completing tasks and working capabilities and rewards play an important role to prevent employees from arising dissatisfaction among them (Lloyd and Mertens, 2018). It means employees chose the appropriate behaviour in the organization if they perceive that choosing this appropriate behaviour is most desirable for their future within the organization. Based on the review of the literature by Ibidunni et al., (2016), the organizations should maintain the basic principles of reward management that are all linked to employee engagement, employee retention, employee motivation, and organizational performance. Following are the basic principles of the reward management strategy such as at first organization should create the natural and positive experiences of reward. Organizations should deliver rewards according to the preferences and expectations of employees. Secondly, the organization should align the reward to the performance of the individual employee and group that directly supports the individual achievement or group achievement of the objectives of the organization. This reward should be beneficial for both employee and organization (Korir and Kipkebut, 2016). Third, the organization should communicate with employees and guide them to do the best process of executing the work that helps them to gain rewards. Fourth, the organization should pay remuneration to their employees based on the performance and values of the individual employee. Fifth, the organization should translate the achievement of organizational and individual employees into valued rewards such as profit-sharing schemes, bonuses, etc (Bussin, 2018). Finally, the organization should establish a fair organizational environment to provide fair treatment to its employees that provide them with flexibility within this reward framework. These principles are beneficial for an employee to achieve an employee’s personal and professional goals (Kanwal, and Syed, 2017).
Fig 1: Conceptual framework of the Reward management strategy
Source: (created by author)
Proposed Research Methodology:
Data Collection Method:
In this proposal, the data collected through secondary data and qualitative analysis method would use to collect the data from the different kinds of literature that are written by the various authors. Secondary data collection helps the author to collect the information from the different kinds of literature that are written by the various authors that include organizational records, governmental information, newspaper article, journals, etc. The secondary data collection method would be suitable for this critical review of the reward management strategy within the organization. It is cost-efficient and time-saving. It would be useful for this process because it would help the author to collect in-depth information about the strategic reward management process within the different organizations throw review the literature of various authors (Johnston, 2017).
Qualitative analysis method would help the author to analyze the information in a depth that would provide detail information about reward management strategy