Reward Systems

3656 WordsApr 8, 200315 Pages
Introduction 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. Various conflicts in the RM system can affect the benefits that can be obtained. It has been argued…show more content…
The fourth criterion is to ensure that the system is integrated with all other HRM functions, and that the employees can control and influence the performance outcomes. Communication of the system is the fifth criterion, the system, its objectives and the rewards must be effectively communicated to all participants. The final criterion is that the system must be evaluated on a regular basis to ensure the objectives and returns are being achieved. In addition RM has strong links with the following Human Resource Management (HRM) functions; job analysis, recruitment, performance assessment and union management relations. As stated by Lawler (2002) individual based pay should be used to reward persons for their skills, knowledge and competencies relative to their external market value. Multiple pay for performance approaches should be used as rewards. Reward systems should be tailored to fit the characteristics and requirements of the individuals that an organisation wishes to attract and retain. Reward Management in the subject organisation The subject organisation is a national company which was formed in 1976 and has thirteen branches throughout Australia. The core business activities are the importation, sales, hire, and spare parts backup of various types materials handling and mobile equipment throughout Australia. In addition the company is also a national fleet management service provider. The company employs

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