Managing Human Resources: Implications of Employee Performance and Rewards

Running head: MANAGING HUMAN RESOURCES
Managing human resources
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1MANAGING HUMAN RESOURCES
Executive Summary
The aim of this report is to analyze an issue related to the Human Resource implications of
employee performance and rewards. To prepare this report a news report on the same topic will
be chosen and analyzed relating the topic with the HRM strategies and other human resource
management challenges faced by companies. The effects of rewarding the employees to motivate
them will be analyzed in the report.

2MANAGING HUMAN RESOURCES
Table of Contents
Introduction......................................................................................................................................3
The Issue Related To Performance and Rewards in the Story....................................................3
The Theories on Compensation or Rewards and the Performance of Employees......................4
Reinforcement Theory..................................................................................................................4
Expectancy Theory.......................................................................................................................5
Equity Theory...............................................................................................................................5
Agency Theory.............................................................................................................................5
The Different Types of Rewards.................................................................................................6
Importance of Rewards or Compensation...................................................................................9
Conclusion.......................................................................................................................................9
Reference list:................................................................................................................................11

3MANAGING HUMAN RESOURCES
Introduction
Employee performance and rewards management is a process of rewarding the
employees in terms of various benefits, compensations and wages to ensure that the employees
are satisfied with their job role, provide their best foot forward and give maximum productivity.
The reward management system was introduced after the psychologists studied the behavior of
the individuals how the people reacts to rewards and compensations and how it motivates them
to continue with their best performance. The psychologists have created certain motivational
theories, which are closely related with the ideas of motivational reward system. In this report
the article related to Samsung paying reward to the employees will be analyzed, the main issue
of rewards will be explored. The topic will also be discussed relating it with the employee
relations challenges, performance management, learning and development, motivation and
rewards, managing diversity, and employee turnover and retention.
Having an efficient system of reward, is compulsory so that the employees come to know in
details about their task sand display the skills to do it, they will have the level of motivation
required to work and provide best performance. The chief purpose of this report is to identify the
issue related to performance reward management, analyze the theories related to the topic and
finally to provide solutions to the problem.
The Issue Related To Performance and Rewards in the Story
The story provided in the article is about the company Samsung, the company has paid
special bonus to their employees belonging to their “mobile division” who were sincere in their
work (Haider et al., 2015). Despite of the poor performance of the company for that year, they
kept the division running and prevented any unnecessary ramp down in the company, as
Samsung was not doing well in business during the year. Samsung has taken up this initiative to