The Significance of Reward System and Motivation in Human Resource Management

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
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1HUMAN RESOURCE MANAGEMENT
Literature Review
It is one of the universal fact that employees are a significant asset to any organisation
or a company. Therefore, the success rate of any organisation is depended upon the
employees working for that particular organisation. Therefore providing job satisfaction to
employees is one of the key objective of the Human Resource Management (HRM) of any
organisation. In the case study provided, the organisation tends to suffer from financial loss
due to the lack of productivity level among employees. The lack of recognition or reward
seem to demotivate the employees and as a result have a negative effect on the employees’
performance. It is observed that reward system and motivation are two significant variables
that plays a vital role in accelerating job satisfaction among employees for the purpose of
enhancing organisational citizenship (Arokiasamy, Tat & bin Abdullah, 2013). In addition to
this, it has also been observed that organisations that tend to establish reward system in their
organisation show higher success level in the competitive market as there are higher level of
job satisfaction among employees that ultimate results in higher performance level from them
(Yamoah, 2013).
Paying for the productivity of employees has been the base of industrial and
organisational development. Financial reward in the form of salary, bonus and others plays a
significant role in managing employees’ performance. It has been observed that the reward
system influences performance by appreciating and rewarding those who deliver good
performance and by offering incentives to improve it (Malik, Butt & Choi, 2015).
Henceforth, for the purpose of keeping up the good performance flow from the employees of
an organisation, reward system helps the HRM to a great extent. However, in contrary to this,
it is observed that reward system may have its downside as it is observed that reward or
incentive acts as the only form of motivation for employees to deliver a good performance