PRESENTED BY SHARMEEN KHAN AROOJ PASHA ABDULLAH MOHAMMAD

"Winners must have two things; definite goals and a burning desire to achieve them.".

INTRODUCTION
Reward management is a popular management topic. It was developed on the basis of psychologists' behavioral research. Psychologists started studying behavior in the early 1900s One of the first psychologists to study behavior was Sigmund Freud and his work was called the Psychoanalytic Theory

MBAO 6030 Human Resource Management

THE REWARD SYSTEM IS A KEY DRIVER OF:

HR Strategy Business Strategy Organization Culture

MOTIVATION AND REWARD SYSTEMS

Motivation Three Dimensions:

Intensity

Persistence

Direction

MOTIVATION AND REWARD SYSTEMS

INTRINSIC VS. EXTRINSIC MOTIVATION

Intrinsically Motivated
When

doing the job is inherently rewarding

Extrinsically Motivated
When

rewards such as pay and formal recognition act as motivators

EFFECTIVE GOAL SETTING

Specific Relevant Challenging Commitment Participation Challenging

Task Effort

Task Performance

EFFECT OF GOAL DIFFICULTY ON PERFORMANCE

High

Task Performance

Area of Optimal Goal Difficulty

Low

Moderate

Challenging

Impossible

Goal Difficulty

WHY REWARD THEM?????

OBJECTIVES OF REWARDS SYSTEMS

Support the organization's strategy Recruit & retain Motivate employees Strengthen psychological contract Financially sustainability

THE REWARD PROCESS

Feedback

Ability & Skill

Intrinsic Rewards

Motivation to exert effort

Performance: Individual

Performance Evaluation

Satisfaction

Experience

Extrinsic Rewards

REWARDS AND SATISFACTION

An individuals feelings of satisfaction are influenced by comparisons of what happens to others. Satisfaction is influenced by how satisfied employees are with both intrinsic and extrinsic rewards. People differ in the reward they desire and in the relative importance different rewards have for them Some extrinsic rewards are satisfying because they lead to other rewards. Rewards must be valued and must be related to a specific level of job performance

GENERAL MODEL OF ORGANIZATIONAL REWARD SYSTEMS

Organizations Reward Norms Profit maximization Equity Equality Need Types of Rewards Financial/material (extrinsic) Social (extrinsic) Psychic (intrinsic) Distribution Criteria Results Behavior Other factors

Desired Outcomes Attract Motivate Develop Satisfy Retain

TYPES OF REWARDS

Extrinsic rewards Concrete rewards that employee receive.

Bonuses Salary Gifts Promotion Other

raise

kinds of tangible rewards

INTRINSIC REWARDS:
Tend to give personal satisfaction to individual
Information Recognition Trust Relationship Empowerment Monogrammed

/ feedback

name plaque

EMPLOYEE AND THE REWARD

The reward also needs to be according to the employees personality. For instance, a sports fan will be really happy to get some tickets for the next big match. However a mother who passes all her time with her children, may not use them and therefore they will be wasted.

REWARDS AS INDIVISUALS TEAM AND ORAGANZATION

Individual
Base

pay, incentives, benefits Rewards attendance, performance, competence

Team team bonus, rewards group cooperation Organization profit-sharing, shares, gain-sharing

(EQUITY THEORY)

Satisfaction with a reward is a function of both how much is received and how much the individual feels should be received.

JOB EVALUATION
Job evaluation is closely related to reward management. It is important to understand and identify a job's order of importance. Job evaluation is the process which job's are systematically assessed to one another within an organization in order to define the worth and value of the job, to ensure the principle of equal pay for equal work

METHODS OF JOB EVALUATON

PERFORMANCE APPRAISAL
Each employee is different and can bring in something special to the organisation. Each employee has a specific job to fulfil. Performance appraisals are needed in order to understand how every employee can produce the best performance.

IMPROVE PERFORMANCE
performance improvement is the notion of measuring the productivity of a certain procedure finding solutions in order for the productivity to rise the capability of the employees and their effectiveness.

INCREASE MOTIVATION
Performance appraisal is used as a motivation tool. An employee's efficiency can be proven if the targets he was set, have been achieved. The employee will be motivated to do even better and his performance will rise in the near future

IDENTIFY TRAINING/DEVELOPMENT NEEDS

establishing the organizational needs for the employees at this time and in the near future. A few questions may be asked in the process: What can an employee learn in order to be more productive? In which field is training most necessary? And finally who should benefit from the training most?