The Role of Rewards in Performance Management

This article discusses the significance of rewarding employees in performance management and how it impacts organizational success. It explores the expectancy theory of motivation and the role of teamwork in goal setting. It also examines the benefits and drawbacks of rewarding employees and the long-term effects of different types of rewards. Additionally, the article explores the impact of technology on HR functions and how it has transformed the way organizations operate. It discusses the use of social media and digital technologies in recruitment and the integration of big data in HR systems. Overall, the article highlights the importance of rewards and technology in enhancing organizational effectiveness.

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Answer 1
In organisational discourse, rewarding employees in remuneration systems guarantees
organisational success as it fundamentally concerns performance management along with
motivating employees to achieve good performance matrix. The chief aim behind
performance management is to reward employees for their work performed in accordance
with organisational values. The expectancy theory of Victor Vroom is one of the most
popular theories of motivation that suggests the ideas about employee’s relationship between
effort provided to complete a job, performances achieved and rewards they receive for efforts
and performance. In simpler words, employees working in teams may get motivated to
perform better than the others if they receive good performance rewards (Lunenburg, 2011).
Rise of teamwork has created a shift in how organisations comprehend and manage goal
setting. Team goals which are specific and difficult have positive effects on team
performances. Goal theory was developed by Latham and Locke that highlighted four
mechanisms connecting performance management outcomes with rewarding while working
in teams. These included, giving attention to priorities, stimulating efforts, challenging people
to increase performance level and to utilise utmost skills. This theory emphasises highly on
performance management and thus used by many organisation’s while formulating
remuneration system in accordance with rewards achieved after performing aptly (Salah,
2016).
By rewarding higher capabilities, organisations successfully retain individuals along
with providing relationship between performance and outcomes. Additionally, non-monetary
or monetary rewards provided by organisations having small teams or groups motivates and
influences individuals working to achieve strategic goals by improved performances. Reward

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plays a significant role in sustaining and building commitment among employees to ensure
standard performance and work constancy. Employees working in teams will certainly
perform better if they receive recognition and reward for enhanced performances. However,
cons related to rewarding must not be ignored completely as it may disrupt organisational
discourse completely by demotivating unrewarded or under rewarded employees. Also, the
tasks that remains unrewarded impacts employees’ performances by showing firm’s bias
nature and lack of clarity in management. Rewards in the form of bonuses or gifts may
provide organisations with temporary incentives to their employees, but for the long run,
these benefits tend to fade. The feeling of appreciation along with other goal motivation
rewards received by team members may be gone after completion of team objectives and
goals, especially when cash is given, spent and forgotten over time. Hence, rewarding system
in remunerations may prove short term benefit for organisations (Salah, 2016).
Answer 2
Growth of technology have changed businesses vividly where most of the function
within contemporary organisations are conducted via electronic modes. Human resources are
no exception to such changes. As a result, technology have gained much prominence in major
HR functions like job design, people selections, performance appraisals, compensation and
learning and development is likely to increase in upcoming years also. This new style not
only ensures organisational effectiveness, but also develops work efficiency, management
control and maintaining accurate records of workplace individuals. Social media is a
powerful example of technological change that helps in bringing HR effectiveness, especially
during recruitment. Approximately quarter of employees use social media sites like LinkedIn
and Facebook that are used by contemporary organisations while making recruitments and

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inviting fresh talent. Today, social media along with mobile apps are considered as primary
source through which companies influences targeted HR goals by reaching audiences with
job posting and other related information’s. Digital technologies facilitate flexibility and
enhanced integration that allows employees sharing greater voice along with work
experiences (Jain, 2014).
The advancement in tech has also been a driving force that have made many
companies create new roles of HR functions to improve organisational efficiencies and
effectiveness. The IT for human management has made simpler for HR managers by
integrating databases to provide information related to business policies, human capital, etc.
This information can be accessed by any organisational management individuals anytime,
anyplace along with enabling them to make updates. Implementing Big Data in Hr is one of
the finest examples that is used by most of the contemporary organisation’s while developing
technological change in HR systems. Big Data ensures compliances by avoiding risks after
underlying major aspects of organisational functions and tasks. Technology have transformed
monotony via HR platform that have helped organisation digitise their HR needs and making
HR professional aware of current market trends. Big Data also gives HR management’s a
fact-based data of their present workforces to identify emerging trends and their efficiencies.
Tech drivers have redefined HR departments and while they adopt changes, organisations
become smarter (Prosvirkina, 2013).

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References
Lunenburg, F. C. (2011). Expectancy Theory of Motivation: Motivating by Altering
Expectations. International Journal of Management, Business and Administration,
15(01), 1-6.
Prosvirkina, E. (2013). Importance of Information Technology in Reaching HR
Effectiveness:Example of Local and International Banks in Russia. Humanity &
Social Sciences Journal, 08(01), 35-40.
Salah, M. R. (2016). The Influence of Rewards on Employees Performance. British Journal
of Economics, Management & Trade, 13(04), 1-25.
Jain, V. K. (2014). Impact of Technology on HR Practices. International Journal of
Informative & Futuristic Research, 01(10), 25-37.