12. Rewards management

Question 1

What is the link between effective reward management systems, organisational goals and human resource systems

Answer 1

Having an effective reward management system will attract the best workers possible, having a better quality of employee will aid in achieving the organisational goals. HRM plays the important role of recruitment and selection, the rewards system is incorporated into this process so they can attract and successfully employ the right candidate.

Question 2

What are the motivational theories applied in reward management schemes?

Answer 2

Content theory is related with extrinsic rewards such as bonuses that will help motivate the worker.
Process theory is related with intrinsic rewards such as recognition and respect.

Question 3

What are the principal differences between pay schemes?

Answer 3

Time rates involve the employee being paid per hour, a weekly, monthly or annual salary.
Payment by results is the link between reward and effort. Has the advantage that employees can see a direct link between their hard work and reward, the disadvantage is it is expensive to install and maintain this system.
Flexible benefits - This includes extras on top of salary such as phones, cars, child care facilities.