Impact of Reward Systems on Organizational Performance

Running head: BUSINESS COMMUNICATION
Business and Communication
Name of the Student:
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1BUSINESS COMMUNICATION
Executive Summary:
The aim of the report is to provide an insight into business communication in relation to the
impact of the reward systems on the organizational performance. The report commences with a
discussion of the importance of the reward system in relation to employee productivity and
performance. There are also discussions about the two types of reward system, the intrinsic and
the extrinsic and how they influence to the employee performance within the organization.

2BUSINESS COMMUNICATION
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7
Appendices:.....................................................................................................................................7

3BUSINESS COMMUNICATION
Introduction:
The report provides an insight into business communication in context of the impact of
rewards on organizational performance. Rewarding of employees has been associated with
motivating the workforce for a better performance. Therefore, determination of the exact type
and the mix of the rewarding tools remains a challenge for organizations. Studies have put
forward that rewards have a positive impact on the workplace safety and health of the employee.
In fact, rewards refer to one of the vital elements in the work performance for increasing
employee engagement.
Discussion:
According to Shields et al. (2015), it has been a concern for all the organizations across
the world to decide on the effectual human capital strategies for enhancing productivity.
Employee’s productivity in an expanding organization represents one of the crucial factors of the
organizational performance. Technically termed as the human resources in the modern
organizations, employees are one of the most important assets for an industry. In the developed
countries of United States, Japan, United Nations and Germany organizations recognizes
employees as one of the vital assets that require consideration. The rationale behind use of the
employee rewards remains in the fact that the motivated employees are satisfied in terms of the
fulfillment of the want that is both non-financial and financial. Failure in doing so will tempt the
employees in leaving the organization. It is to be noted that some employees prefer in receiving
the intrinsic rewards determined in terms of workplace accomplishments and terms of praise
while others who happy with the extrinsic rewards determined in terms of the bonus, salaries and
incentive offered to the employees.