Management Control Systems: Rewards Systems

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A reward is a consideration that is given to an employee by the organisation on return to the quality of services rendered by the respective employee. Owners of the organisation (in most cases, shareholders) are the ones who will approve the rewards to employees including the directors, head of departments and the lowest cadre of employees. A company may also reward non-employee stakeholders for their contribution to the organisation.

The rewards systems as part of the management control systems, are designed in organisations to motivate employees and managers to perfom better. A well designed rewards system is expected to motivate people to contribute to the attainment of
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Other non financial targets has also been achieved as a result of NYOTA AWARDS which have always been a catalyst to perfomance and preservation of company image. TCC has won the best employer prize in not less than one occasion, and the best taxpayer in Tanzania. It has also been in top three best Taxpayers in the country in more than one occasion.


The negative effects of reward systems have sometimes been witnessed when some employees’ morale is affected when they are demoted to give way for those who have been rewarded by promotion. Employee turnover has been the case when some managers are promoted or vice versa.


It can be seen that reward systems as part of the management control sysstems are very crucial to any organisation, TCC being a perfect example. If well designed, their negative effects will never outweigh their positive effects. There can be different reward systems and different perfomance indicators but during their design, few criteria must be considered in order to arrive at reward systems that are
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