The can be a powerful driver of employee’s
The primary focus
of reward and recognition programs is how organizations define their reward
schemes and communicate this in a manner that employees clearly understand the
link between reward and performance (Flynn, 1998). Rewards and recognition
programmers create environments especially where jobs provide intrinsic
rewards, Good feelings that people get from doing the work itself. Yet in many
organizations, recognition is reserved for an elite few and rewards are defined
solely in terms of wages and salaries. Effective recognition enhances employee
motivation and increases employee productivity all of which contribute to
improved organizational performance (Deeprose, 1994, p. 96). Baron (1983, p.
123) argues that there is a close relationship between rewards and job
performance. He notes that if successful performance does in fact lead to
organizational rewards, such performance could be a motivational factor for
employees. Under such conditions, they can see that their efforts result in
rewards. Consequently, they may be motivated to exert higher levels of effort
on the job. The notion of rewarding employees for “a job well done”
has existed since the 19th century when piece-work systems were first
implemented (Schiller, 1996, p.89). Piece-work systems simply involve plans
which directly associate the employee’s level of pay to their output levels.
Financial institutes are also realizing that a properly designed and executed
total rewards strategy can be a powerful driver of employee’s performance
(Owen, 2003, p. 2-3).
It is not easy
though to know all the things that motivate people in life or at work, but an
effort has to be made. Traditionally, individual performance in organizations has
centered on the evaluation of performance and the allocation of rewards.
Organizations are starting to acknowledge planning and enabling individual
performance to have a critical effect on organizational performance. Strategic
success for the organization lies in focusing attention at all levels on key
business imperatives, which can be achieved.
organizations and companies are implementing incentive programs, which
recognize employee’s efforts and reward them accordingly in a multitude of ways.
Incentive programs have been in existence since the beginning of the nineteenth
century. Since then the idea of what an incentive program is for both the
employer and the employee has changed. Incentive programs used to be simply a
method of payment, meaning the more one produces the more one makes. Today the
definition of an incentive program has broadened to include not only a way of
paying employees but a way of reducing costs for the employer, while at the
same time rewarding the employee for making the extra effort. In the last
decades, a number of countries have adopted pay-for-performance strategies in
order to modify the traditional salary scales. In the past, rewards generally
referred to pay and for many years, rewards programs were viewed primarily as a
necessary evil to attract and retain competent employees. Attitudes towards
rewards programs, and awareness of their strategic value, are now changing.
employees perform more energetically when they feel strongly connected to and
valued by the organization. Performance refers to the result of an activity
according to Boddy (2008, p. 607-675).
As describe above,
there are lot of theories and concepts related to rewarding employees and those
were developed and modified by the researches. Also, there will be more and
more theories and concepts will come for the topic of rewarding employees.