Reward Management

In today’s economic environment everything changes rapidly not only the economic indicator but also people’s life-style or pattern of consumption. In such a rapidly shifting milieu, creative ideas, knowledge, and innovation are the only stable sources of capital (D. Oliver, “Achieving results through diversity: a strategy for success,” Ivey Business Journal Online, vol. 69, no. 4, 2005.) So developing a more diverse workforce can make the business full of creativity and vigour and the most important thing is that creativity and innovation are the indispensable factors in social

In today’s rapidly changing business environment, the ability to transform obstacles into opportunities can be a firm’s biggest advantage (Samašonok & Leškienė, 2015). As organizations recognize the need to be adaptable, creativity in the workplace has become one of the most important determinants of performance and success (Anderson, Potočnik & Zhou, 2014). To date, even though creativity has been linked to firm performance and survival (Nystrom, 1990), many managers admit that employees have “room to improve” in terms of creativity (Shalley, 2004).

People clearly are an organization’s most critical resource. Their knowledge and skills along with their commitment, creativity, and effort are the basis for competitive advantage. It is people that have creative ideas for new products or for process improvements that devise marketing strategy or take technologies to the next level.

Creating and implementing new and improved rewards systems at work has been a tool of success for many organizations. Corporations use these rewards to boost employee morale and to allow their employees “me time”. Throughout the course of this paper, I will determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. Next, I will explain how innovative benefits could be tied to specific jobs. Thirdly, I will critique the effectiveness of equity-based rewards systems versus those with more creative approaches. Then, I will discuss the key elements of integrating innovation into a traditional total rewards program. Finally, I will recommend a

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

Creativity and innovation are necessary in life, whether it is for evolving and adapting to new surroundings or for pulling a company out of a financial crisis, we use our creative abilities and innovate every day. In order to develop and grow the ability to think creatively, one must first understand where these ideas come from and in what environment innovation flourishes. Steven Johnson, Edward Burger, and Michael Starbird suggest change comes from productive thinking and working collaboratively in a group. Effective thinking can be broken down into five essential elements, while working collaboratively in a group setting allows for different views on the topic at hand creating a stronger more defined product or process.

• Amabile: How to Kill Creativity? Harvard Business Review 1998 (course packet; writeup 1. For Feb 5)

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

To make a business grow and achieve productive and efficient results you need to invoke creativity which has always been an essential business skill. Since long time creativity has been applied to a business world as companies seek to use it in all parts of the organization to make it gain more profits and to be exceptional from others. A business person has to find unique solutions every day and he has to know how to react to situation creatively. Richard Florida (2002) stated human creativity is the ultimate economic resource. The ability to come up with new ideas and better ways of doing things is ultimately what raises productivity and thus living

Creativity and innovation; Hanson (2013) explains that through creativity and innovation, an employee is able to bring in new ideas into the organization, enhancing growth and development for the business enterprise. Creativity in a salesperson enables them to handle all kind of customers that they meet as well as be able to meet and satisfy their diverse needs.

Organizational creativity is when employees develop novel ideas as a whole or as an individual (Greenberg 2015). Whereas, innovation is when novel ideas are implemented within the organization successfully by either improving something already established or introducing something contemporary (Greenberg 2015; Ferlic 2008). However, business analysts that rank companies from most to least creative tend to omit the criteria they use to determine what makes an organization innovative (Choudhary, 2014; Ferlic, 2008). Furthermore, the gap in academic research in determining what critical traits are needed to encourage and enhance organizational creativity gives us reason to examine these critical traits (Choudhary, 2014; Goudreau, 2013; Greenberg 2015).

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.

This research paper will be exploring the different ways and techniques companies can use creativity in order to become a successful organization. Employees encouraged to think creative have proven to come up with new ideas to improve the work place, problem solving, new products, and much more. Employees have also demonstrated to be more satisfied in their jobs because they feel as though their idea make a difference. There are numerous of ways to encourage creative and this will be elaborated in the paper.

Harvard business essentials : managing creativity and innovation, 2003, Harvard Business School Press, Boston, Mass.

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to