Impact Of Reward System on Increasing Performance and Productivity.

 

All organizations are concerned with what should be done to achieve sustained high levels of performance through people. Consequently, the subject of adequate incentives for workers, as derived from the so many attempts made by management practitioners, is to look for the best way to manage so as to accomplish an objective or mission with the least inputs of materials and human resources available (Forker, 2020).

Certain problems of inadequate motivation however do arise as it concerns certain individuals who come into the work situation with differences in expectation, behavior and outlook. These problems of individual motivation inadequately may be divided into two categories. Firstly, the inability of certain individuals to be motivated may stem from the fact that there is a deficiency in their personality (Narahari, 2019). For such people, the desire to avoid failure may be too strong while paradoxically, the motive to produce positive results may be too weak. This could produce a general resistance to achievement-oriented activity that should naturally be overcome by other extrinsic modes of motivation if there is to be any spur to achievement oriented activity at all. Secondly, even when the achievement motive is relatively strong, the challenges before the individual worker may be proven to be inadequate or too difficult, whichever of these that apply to the individual worker will usually manifest themselves in different ways such as lack of enthusiasm or premature surrender (Tallon, 2022).

In spite of all these apparent attendant problems of motivation, and productivity, every organization do necessarily seek means of ensuring continuous productivity, which would be geared towards the accomplishment of organization goals. The organizational system under study cannot be said to be different in any way, in terms of producing the results for which it was set up (Guest, 2021).

Employee try to find satisfaction in what they do and as a result the manager should be able to understand the problems faced by his employees and find a way of satisfying their needs and aspiration. The general assumption is that an adequately motivated worker will in turn give in his or her best towards the attainment of a general consensus (Patel, 2017). Consequently, when a worker is motivated the question of poor performance and inefficiency will be a forgotten issue in an organization. Managers who are successful in motivating employees are made often providing an environment in which appropriate or adequate goals called incentives are made available for the needed satisfaction of the employee (Forker, 2020).

Today managers cannot rely solely on the manipulation of pay, benefit or working conditions to encourage workers to perform effectively and efficiency. It is the duty of the manager to create and develop an effective environment in which employee will be motivated to become productive members of the organization by striving for what will bring them reward (Tallon, 2022).

Oosthuizen (2021) stated that it is among the function of managers to motivate the employees successfully and influence their behavior to achieve greater organizational efficiency. Motta (2018) is of the view that performance at job is the result of ability and motivation. Ability formulated through education, equipment, training, experience, ease in task and two types of capacities i.e. mental and physical. The performance evaluation and rewards are the factors that proved to be the bonding agents of the performance evaluation programs (Narahari, 2019).

Entwistle (2017) is of the view that if an employee performs successfully, it leads to organizational rewards and as a result motivational factor of employees lies in their performance. Majority of the organizations require their employees to work according to the rules and regulations, as well as, job requirements that comply with full standards. The investigations that have been conducted to find the relationship between compensation and individuals were focused to increase the performance of employees. The highly motivated employees serve as the competitive advantage for any company because their performance leads an organization to well accomplishment of its goals. Among financial, economical and human resources, human resources are more vital that can provide a company competitive edge as compared to others. Commitment of all employees is based on rewards and recognition. Prosperity and survival of the organizations is determined through the human resources how they are treated. Most of organizations have gained the immense progress by fully complying with their business strategy through a well-balanced reward and recognition programs for employee (Guest, 2021). The motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. The entire success of an organization is based on how an organization keeps its employees motivated and in what way they evaluate the performance of employees for job compensation. Managing the performance of employees forms an integral part of any organizational strategy and how they deal with their human capital. Today where every organization has to meet its obligations; the performance of employees has a very crucial impact on overall organizational achievement. In a demotivated environment, low or courage less employees cannot practice their skills, abilities, innovation and full commitment to the extent an organization needs (Forker, 2020). Freedman (2018) is of the view that when effective rewards and recognition are implemented within an organization, favorable working environment is produced which motivates employees to excel in their performance. Employees take recognition as their feelings of value and appreciation and as a result it boosts up morale of employee which ultimately increases productivity of organizations. Csikszentmihalyi (2019) posits a view that the state of satisfaction and happiness is achieved by the employees only when they maximally put their abilities in performing the activities and functions at work. In this way motivated employees are retained with the organizations thus reducing extra costs of hiring (Guest, 2021).

Flynn (2018) argued that rewards and recognition programs keep high spirits among employees, boosts up their morale and create a linkage between performance and motivation of the employees. The rewards include the financial rewards, pay and benefits, promotions and incentives that satisfy employees to some extent but for committed employees, recognition must be given to keep them motivated, appreciated and committed. Baron (2021) argued that when we recognize and acknowledge the employees in terms of their identification, their working capacity and performance is very high. Employees are motivated fully when their needs are met. The level of motivation of employees increases when employees get an unexpected increase in recognition, praise and pay (Narahari, 2019).

Conclusion

Rewards play a vital role in determining the significant performance in job and it is positively associated with the process of motivation. There are two factors which determine how much a reward is attractive, first is the amount of reward which is given and the second is the weightage an individual gives to a certain reward. When employees experience success in mentally challenging occupations which allows them to exercise their skills and abilities, they experience greater levels of job satisfaction. Promotions create the opportunity for personal growth, increased levels of responsibility and an increase on social standing. Similarly, the recognition which is a central point towards employee motivation adores an employee through appreciation and assigns a status at individual level in addition to being an employee of the organization.

References

Forker, 2020. Total Quality Management in the Supply Chain: What is the Impact on Performance?. International Journal of Production Research, 1(1), pp. 15-85.

Guest, 2021. Human Resource Management and Industrial Relations. International Journal of Management Studies, 11(4), pp. 31-34.

Narahari, 2019. A New Approach to Achieving Sharp and Timely Deliveries in Supply Chain Networks. International Journal of HRM, 1(1), pp. 61-72.

Patel, 2017. Performance measures and metrics in a supply chain environment. International Journal of Operations and Production Management, 5(1), pp. 41-58.

Tallon, 2022. Enhancing Supply Chain Practices through Human Resource Management. The Journal of Management Development, 7(4), pp. 17-35.