About Reward Management

Reward management is the process of developing and implementing programs and policies to encourage rewarding employees. Fairness, consistency, and equity are provided by the incentive management system in fulfilling. The goal of reward management is to inspire and keep employees. Rewards also encourage administrative effectiveness, internal and external equity, financial sustainability, psychological strength, and legal compliance.

Both intrinsic and extrinsic incentives are possible. Extrinsic benefits include things like security, treatment, compensation, conditions, and more that meet someone’s basic requirements. The kind of rewards that meet higher requirements are known as intrinsic rewards. The growth of respect is an illustration of an intrinsic reward. Monetary rewards influence motivation that satisfies the basic needs of a person while non-monetary rewards enhance the motivation that satisfies higher needs (Greene, 2016). Application of reward management strategies that uses extrinsic rewards can be more effective for Sport Connect because employees will appreciate monetary rewards because the rewards are related to their achievement. An employee will consider the reward as far as compared to a non-monetary reward. However, in the long run, the effect of the intrinsic rewards becomes more effective because of the inherent nature (Buchanan, 2015).

Psychoanalysis reveals other employee motivations which include the introjected and the identified. The non-action motivations include the identified and the introjected. The introjected motivation refers the motivation that originates from within oneself. If not met, the introjected motivation becomes guilt, and this negatively affects the employers. The result of the guilt is underperformance. The identified motivation refers to the motivation that requires someone to complete a task. Workers encounter the different motivations. The best motivation is the one that comes from within an employee if given a right environment to work. Sport Connect should be aware of the important managerial decisions that the management should take to ensure efficiency in the reward system management. The management decisions should be aimed at meeting both employees’ needs and employers’ needs (Thierry, (2015).

The reward system in an organization performs a vital role. Employees are essential in an institution like any other factor of production in business. The production process is made possible by the presence of employees who work to enable continuity of the production and realization of profit. A good reward system promotes efficiency in a firm. An efficient firm in the production of goods or a service will get maximum productivity. Excellent performance of the workers ensures that they get enough and live well. The reward system also encourages job evaluation where the processes are carried out in transparency. Transparency in the working place ensures that the worker can be able to calculate their compensations. The system enables the workers to be sure of the available options and that no worker can be exploited in any way. The assurance would make workers more committed to their job which would increase their productivity. Sport Connect needs to manage the factors that affect the firm internally and externally (Murlis 2014).

Reward management system that involves strategic planning will have allied forces that affect the management of the reward strategies. Economic theories can explain reward management. Sport Connect can use cost-benefit analysis to evaluate its position. Both financial and non-financial structures can be used to embrace the appropriate strategies, processes, and structures to maintain reward systems. The firm’s value on employees causes a significant impact on how the firm performs. The employees’ relationship contributes much to the firm’s effectiveness. The regulatory policies that govern the reward policies should be aimed to motivate the employees through coming up with proper policies. Bad systems can lead to low morale of the employees which will make them less effective in their jobs thus low productivity. The firm requires an integrated approach to employee management. Firms should employ an employee reward strategy.

Sport Connect requires a strong business strategy to be able to implement a strong business strategy fully. A good business strategy identifies requires the management to identify the key drivers of the company or organization. Each organization is uniquely capable of dealing with the internal management issues and executing the plans necessary to enable progress. The key drivers of Sport Connect may include high productivity and performance, customer service, profitability, and most important the need to keep all the stakeholders satisfied. The stakeholders include the employees, stakeholders, local authorities, shareholders, investors, and representatives. The reward strategy for the company should be designed to help achieve the goals of the company. The crucial matters to include in the reward strategy include the level of pay. Job evaluation is, however, necessary so that the levels of pay may go along with the job requirements and the responsibilities. The basic pay for different employees should vary depending on the level of their jobs. The company’s internal structure and relativities will influence the salaries base. The company’s internal relativities can be determined by looking at the job evaluation while the market rates can determine the external relativities. A collective bargaining can also be made where the employee’s bargain or are given a chance to bargain and come to an agreement with the employer as to how much they are supposed to get. Employees can engage in bargains through a union or by individual bargaining. The bargaining agreement states what will be the primary salary. Also, the allowances can also be added in the bargaining agreement to take care of other dues which might arise in the course of the working. The additional responsibilities and work that may require allowances are discussed and the appropriate pay set to ensure that the employees are aware of their dues when those kinds of situations arise (Shields, 2015).

A contractual compensation that is paid after a job varies according to the results that are achieved by the workers. A discretionary amount is also paid to employees as compensation to other contributions. A fixed pay takes care of employees needs and gives employees a kind of job security. The variable amount paid to employees promotes greater creativity, innovation, and contribution from the employees. The categories of basic pay may be in various forms which include the basic salary, house allowance, and compensatory allowance. Dearness allowance may also be included in the basic pay. Although dearness allowance varies with a price index, it is not performance based. A firm should design the payment options in a way that a basic pay should be paid to specific employees due to their contributions and specific responsibilities in the company. Conventionally, the duties and responsibilities of any employees are laid out and disclosed at the point of hiring. However, the primary pay and allowances may change through the employees’ career. The changes due to promotions come with added duties and responsibilities which calls for higher pay.

Exemplary performance can be rewarded by the company to give the employees an incentive. The additional rewards may be added by the management to reward good performance, experience, or skill. The additional pay that reward performance, skill, and experience among others is called a contingency pay when they are paid together with the basic pay. When the contingency pay is not added to the base pay, then the pay becomes a variable pay known as a bonus. The other employee incentive is the benefit. Employee benefits that are accompanied by working in a particular company are crucial in maintaining employees. Such benefits include insurance cover, pensions, and cars among others. All remuneration is supposed to be disclosed to the employees.

The formulation and implementation of reward policies constitute the reward management. Equitable and fair rewards are some of the critical focus of the enforcement that can make help make a difference in the reward system. The achievement of the best reward system management requires a firm to consider both financial and nonfinancial tokens. However total reward is not a relaxed state to attain. Firms that do not attain the complete reward state can deal with individual employees and try to overcome the environmental challenges. The reward management can be faced with many challenges and the management needs to be prepared to face much of it (Manas, 2015). The performance of any organization can, therefore, be affected by the action of any management regarding the reward management system. Employees consider how well their employer manages to give them the best of compensations against their contribution to the firm. The challenges of the reward management issues can be solved best through the cooperation of the stakeholders in a firm or organization. An excellent compensation plan will promote high productivity since the employees will be happy and will be motivated to work more. Similarly, the employees will receive customers cordially which will encourage the customers to come back more.

Most of the employees are aware of the compensation plans that exist in the companies or institutions where they work. Members of staff can, therefore, say no to a retrogressive decision regarding their compensation. Sport Connect need to involve its employers in the reviews of the reward management policies. The firm can also plan for a training and awareness campaign to enlighten the employee on the reward policies because the management of the policies is affected by many factors.

Sport Connect should treat the reward management as one of the key drivers of the company. A well-structured plan and provisions should be laid out so that the employees are aware of their entitlements. A well-structured mode of rewarding the employees will promote transparency in the business and satisfaction of the workers. The economic theories govern the reward management. The economic theories that govern the reward management system include the human capital theory, the wage theory, the agency theory, the law of demand, the bargain theory and more.

The worker’s morale can be reduced if they are disturbed. The psychological problem occurs when they feel like they are misused or are mistreated. The feeling may cause a chain of reaction where the wrong attitude towards work can lead to workers rudely addressing the customers. Similarly, when the workers are given the right kind of motivation, they will have a reason to work diligently and without tiring with an aim to achieve the organizational goals (Reif, 2015).

Brexit recommends that organizations should keenly look at the impact of making the right decisions concerning their workers. The crucial decisions include the demand and supply, hiring of workers, recruitment, employee management, and employee reward. The administration should also consider other available options for employee engagement. The efficient management system should ensure the right kind of employee motivation and address employee issues. Workers decisions ought to be respected so that they will perform well in their duties. Good performance will lead to high productivity and higher profits. The workforce is the most critical team in a company and if ignored can be a great disaster to the business continuity (Shields, 2016). Employees need clear and defined plans about their pensions. The viability of the pension plans should be enhanced in the interest of the employees.

Bad economic times are expected in the business cycle. The low economic times where the wages and salaries may reduce are challenging times to the employers as well as the employees. The employers should understand the need to let the employees know the reasons why the wage is reducing. The employees can feel disillusioned when their salaries are cut while their bosses are enjoying their usual pay. According to Brexit, organizations need to understand the consequences of having the right strategies to take care of the employees. A good environment in the workplace increases the productivity of the workers. According to psychologists’ behavioral research, people react to different motivations in different ways. Reward management is therefore related to motivation of the employees. The right motivation ensures that the employees are productive in the business. The positive motivation increases the employees’ willingness to perform their duties in the right way. The response to motivation helps the workers to remain focused and maintain a goal-oriented behavior.

According to Maslow’s hierarchy of needs, employment can be found under safety needs (2015). A good working environment contributes to the sense of belonging. Management offering an excellent working condition and recognizing good work can boost the self-esteem of the employees (Friend, 2013). The theories discussed by Maslow in the hierarchy of needs provide a theory that helps understand and make necessary adjustments to Sport Connect firm (2015). Employees in different firms require different management techniques to enhance motivation. The different management techniques are supposed to give the employees increased motivation.

The contemporary world does not necessarily require money for motivation. The motivation can come from different areas. For instance, the way managers make the employees feel can make a difference in how they respond and perform their duties and responsibilities. The ability of the managers and leaders to manage the employees is a vital tool for the success of a firm. The motivation through various methods that managers use is therefore important because it can result in a great impact on the viability and productivity of the business. The success of a firm depends on how motivated the employees are (Mitchell, 2017).

Reward management should be aimed at enabling the employees to achieve their personal goals as well as business goals (O’Connor, 23). People who are satisfied with their jobs are likely to live an enjoyable and a more fulfilling life. People who do not enjoy their work and work environment are likely to feel bad about their work and their life as the whole. The importance of the reward management and motivation is therefore crucial in control. Sport Connect should invest heavily and manage employee motivation and reward management to promote employee satisfaction and higher productivity.

The importance of a well-planned reward management system cannot be overemphasized. The main reason why employees work is to be able to meet their needs and their family’s needs. The policy related issues are fundamentally useful when deciding on the pay levels of the employees. The way in which an organization designs its pay structure will determine the way employees work which in turn will affect the productivity of the company. A pay structure is a way a firm sets different payments for its employees. The management of a company or firm can also design its pay forms. Pay forms refer to the methods of rewarding efforts of employees who perform well. The rewarding of people who do exemplary well motivates employees and encourages better performance.

The managerial concepts, in theory, can lead to a dilemma when the parties involved find themselves in a situation of incomplete information. When business owner hires a manager to pursue the business interests, there can be a conflict of interest which can result in a problem of moral hazard. One party might fail to access valuable information about an underlying management procedure that is being implemented by the other party. The interests of the two parties can be aligned by linking the payment and performance (Daley, 2012).

According to Vroom, employees may tend to show behavior that leads to most valued rewards (2016). The relationship between the performance and reward, personal growth and reward and business management are crucial. The performance-reward link for the Sport Connect should be attractive enough to ensure employee satisfaction and increased performance. The desired behavior of the employees towards work and business as a whole can be managed by the way the employees are handled. The contribution of the employees towards Sport Connect and the rewards the employees get from their participation promotes equity. The interaction of the employees and employers should maintain a relationship that will always sustain the business. Inadequate treatment of the employees can lead to underperformance and reduced productivity. Justice may be sought by the employees if they feel that they have been denied their rights. When the employees are inefficient, they can be considered overpaid by the company because they would have failed to meet their obligations. Therefore there can be conflicts between the firms and the employees. The internal management structure of Sport Connect should manage the pay structure to motivate all employees depending on the contributions of each and individual in the firm (Gkorezis, 2012).

Commissions can be used as another way to motivate employees. The Commission can be an additional payment to the basic salary, or it can be used purely on its own. A firm that has a well-managed sales department can use the commission to drive the sales of a company. The sales department hires individuals who are committed to delivering specific targets within a given number of days. The payment paid in the form of commission delivering the set targets motivate the employees to get to produce more of the required numbers to grow the company. The sales department can manage the sales team while giving them a motivation in the form of commission. Most of the companies maximize the sales team in a way that they do not offer a retainer. The pure commission based method leads to more productivity since the workers will be motivated to work extra hard to meet their personal needs as well as accomplishing the company’s goals. Use of both salary and commission can also be used to motivate the permanent employees. Each in a department can be given a target and be promised a commission per unit achieved. The individuals will be motivated to work and earn more. Individuals will work towards achieving their personal goals. Similarly, the individual will also be assisting the company to achieves its objectives (Norton, 2015).

The reward management strategies should be geared to making sure that people who work for a particular company are taken care of by the managers of firms. The process of the reward management and strategies aim to achieve equity, fairness, and value. The reward encourages innovation which gives the direction of the company. Reward strategies and policies, therefore, should be aligned with a firm’s goals. The contemporary market requires every company or organization come up with a strategy that will enable the company to have a competitive advantage over the competitors and other producers of close substitutes. A unique environment of a particular company provides the company with what is required to be unique in the market. The designed policies also spell out the requirements that are crucial to maintaining the organizational culture. An organization design needs to have a strong reward system.

Job Evaluation

Reward management requires job evaluation to be able to measure the work productivity against the rewards. The internal relativities are established to assess the value of particular jobs in a firm. Equity is also an important thing to consider in job evaluation and reward. According to Michale Armstrong, job evaluation can take the analytical form or non-analytical forms (2014). A systematic assessment focuses on the decision about the size of the job. A particular level of analysis is used to determine the size of employment. A group of factors determines the relative job value called the factor plan. The analytical evaluation methods are analytical matching and the point factor schemes. The non-analytical form grades the jobs while placing them in order. Examples of the non-analytical forms are job rankings, benchmarking, and market pricing, job classification, and comparison ranking.

Pay Grading and structure

A pay structure refers to different levels of pay for different levels of jobs. The value is usually determined by the external relativities and job evaluation. The appropriate use of a pay structure promotes good performance and organizational growth. People work because of the pay thus it is an important feature. Compensation can be seen as an exchange of services with money between the employee and an employer. A reward is expected after working. There are different types of pay grading an organization. A graded structure has a hierarchy of jobs that are categorized in the same level. The process is non-financial. Payment structure in an organization may be single or divided for permanent and for contractual employees. The jobs are grouped into grades, and the pay is done according to the pay levels. The employees are aware of the job groups as well as the payment they receive. However, the pay may vary depending on the experience and academic qualifications of the employees across the organizational job levels. The organizations should be guided by the principles and structures of grade and pay. The structures should align with the culture and attributes of the workers and firm. Also, the structures enable the proper management of the internal relativities that promote consistency, transparency, fairness, and equity. The structures should also give a chance for increasing skill, rewarding consistent performance and competency in contribution. The pay structures promote good control and implementation of policies (Boyens, 2016).

Conclusion

Reward management system in an organization is an essential tool in the growth of the business. Managers should ensure that the employees aware of their responsibilities as well as their entitlements. Motivation allows the employees to contribute to their maximum towards the growth of the company. Similarly, the workers will grow and develop themselves thus reaching self-actualization. Sport Connect can apply reward and motivation, job evaluation, and pay grading techniques to ensure that the employees are satisfied. Satisfied employees mean increased growth because the productivity of the employees will be at highest.

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