Contemporary People Management and Reward System Analysis Report

This report delves into the realm of contemporary people management, emphasizing the critical role of reward systems in fostering employee motivation and organizational success. It explores the necessity of employee reward systems, highlighting their function in acknowledging hard work, boosting morale, and enhancing employee skills. The report identifies potential issues within reward systems, such as perceptions of unfairness and the importance of maintaining equity among employees. It examines solutions through HRM theoretical understanding, including the application of equity theory and motivation theories like Herzberg's Two-Factor Theory. The report emphasizes the significance of fair and transparent practices, communication, and employee involvement in decision-making. Ultimately, the report concludes that effective reward and recognition systems are essential for maintaining employee morale, driving performance, and ensuring organizational growth.

Running head: CONTEMPORARY MANAGEMENT
Contemporary people management
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
Need for Employee reward system..................................................................................................3
Rewards and recognition..............................................................................................................3
Motivation to develop the skills...................................................................................................3
People Management Issue in Reward System.................................................................................4
Maintaining Equality in Rewarding Employees..........................................................................4
Meeting aspirations of employees................................................................................................4
Improper Evaluation of Individual Success.................................................................................5
Solution through HRM theoretical understanding...........................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................7

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Introduction
HRM in any company is responsible for the sound functioning of the organization. It is
the duty or the responsibility of managers to make sure that they are taking care of all the needs
and demands of the employees. As per the opinion of Rimi et al. (2017), the employees must be
motivated so that they can keep up their good work. As a result of this, the employees have to
motivate by their management. One of the best ways of motivating the employees is by
rewarding them for their efforts. McDermott et al. (2015) have opined that the system of
rewarding is essential for keeping up the morale and the mental strength of the employees.
Employees will feel motivated and will try to carry on with their hard work. However, Sarvaiya,
Eweje, and Arrowsmith (2018) has opined that in a similar context that there are many
advantages and also disadvantages of the rewarding system.
Need for Employee reward system
Rewards and recognition
This is one of the major uses of introducing the reward and recognition system. This
helps in providing some incentives to those employees who have been working very hard for the
overall production of the organization. It is also one of the ways of acknowledging the hard work
and the efforts that have been put forward by the employees
Motivation to develop the skills
This is one of the prerequisites that are needed to initiate the overall welfare of the
organization. The employees have to be trained and encourage do that they can take up the

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training properly and then try to use the same in their professions. Therefore the rewarding
system is recommended so that they can be used properly in their professional field.
People Management Issue in the Reward System
Many different issues can arise due to the rewarding system in different organizations.
Employees might often feel that they are not being given the rewards in a justified and a fairway.
There are several people or employees who feel that their managers are not paying proper
attention to all of them equally. There are several peoples issue that may arise due to the
inequality or any kinds of biases existing in the employee reward system.
Maintaining Equality in Rewarding Employees
There can be an issue of trust and understanding among the managers and also the
employees. This is based on several reasons. There can be a lack of proper communication due to
work pressure, lack of sound communication system and much another such issue. Therefore
there can be a problem among the employees and the management. However, it must be noted
that the HRM officials have to be acting like a connecting element between the managers and the
employees. They have to make sure that the working records of all the employees are being
taken to the managers so that the rewarding systems can be made in a proper and justified
manner. However, the HRM officials and the other managers must be following the principle of
equality and fairness among their system so that none of the employees is being deprived and
they are happy with the kind of rewarding employee system. However, at times, there are some
misconceptions or some unethical attitude among the managers. As a result of this, the old and
the tenure employees might be angered to see that the new employees or the fresher are getting a

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good promotion than in comparison to them. This will be delivering a feeling of jealousy and
fights within the workforce
Meeting aspirations of employees
Employee rewarding system is usually set up by the organizations so that they can
motivate their employees. However, the managers and the HRM officials often do not set the
rewarding structure in a fair or a proper way. They do not make any evaluation of the actual
expectations of the employees. For insurance, an employee might feel that they need an excess
amount of 5000 rupees for their security fee or their health insurance. The managers of the
organization might set a reward amount of only 2000. Therefore this will not be able to satisfy
the needs of the desired expectations of the employees.
Improper Evaluation of Individual Success
The employee reward system depends upon the criteria that are set by the managers or the HRM officials.
However, these criteria are often not disclosed to the employees. It must be noted in this context that the
reward system is usually based upon the performance that has been delivered by each employee. Thus the
employees may not be happy with the criteria or the grounds on which they have been evaluated.
Therefore the employees are not happy if the criteria or the fields of the rewarding system are not
clarified to them properly.
Solution through HRM theoretical understanding
HRM department has to make sure that they are able to cater to all the needs and
demands of the employees. Cassar and Bezzina (2017) have stated that one of the essential
activities of the HR managers is to ensure that one of the employees are suffering from any
unjustified activities. Therefore they have to ensure that that they are smoothly communicating

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all the doubts, queries and fears of the employees to the respective departmental managers. They
have to act as a bridge between the employees and the managers. The theory of equity must be
used so that all the employees can get equal benefits because of their contribution. The theory of
equity was given by Adam, a workplace and behavioural psychologist (Luqmani, Leach and
Jesson 2017). This theory talks about the benefit of fairness and equality among employees
within the workplace context. This is because a senior employee will naturally be upset and
angry if they find the reward being given to any new or fresh employee is more than him.
Therefore this will appear as a total injustice to the senior employee. He might feel that as he has
been serving the organization for a larger period, he must be given better promotions and better
facilities in terms of the rewarding system.
Theurer et al. (2018) have argued in the same context that often the rewarding and the
recognition systems in the organizations are set by the managers based on the quality and the
quantity of the products on that has been given by the employees in the organization. Though
this approach is usually used for bringing about equality and fairness among the employees,
some negative impacts are associated with it.
Employees might feel that they are not being subjected to a fair reward and recognition
system. Therefore the HRM officials must maintain the propositions of this principle in the right
way. Miner (2015) thinks that employees who are receiving too less and also the ones who are
receiving too much are not usually happy, and they tend to have a feeling of jealousy among
themselves. Therefore the HRM managers have to make sure that they are setting the reward
systems in such a way that both the tenure and the new employees can get a fair and justified
reward system.

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The theory of motivation must also be used so that all the employees are motivated and
encouraged by their managers. Theory of motivation, like Herzberg's Two-Factor Theory,
must be used so that the managers can identify the two factors that are the satisfiers and also the
hygiene factors. The hygienic factors are like the organizational policies, job securities and
others (Alshmemri, Shahwan-Akl and Maude 2017). The satisfiers, on the other hand, are those
that help in making the employees motivated by the job recognition aspects which can be the
reward and the recognition systems (Habib, Awan and Sahibzada 2017).
Thus it can be said that the satisfiers like pay increase, bonus or the added incentives and
other such factors must be given to all the employees so that they can put forward their strength
and their efforts to make them recognized in the organization. For instance, the involvement of
the employees in the decision-making procedures must be developed so that the employees can
make contributions and take active participation in the decision-making process (Holmberg, Caro
and Sobis 2018). This will be helping the employees to get motivated and feel that they are part
of the organization. However, the decision-making system must be developed in a justified way
so that both the tenure and the recent joiner must be able to share their opinions in an equal and
justified manner. This will help them in understanding that the company is giving them equal
chances so that they do not feel deprived in any way.
Conclusion
Thus it can be concluded that the employee reward and recognition system is one of the
essential methods that must be present in all the organizations. To make sure that the employees
are not giving up their morale and their zeal of working hard, the HRM officials have to select a
system that should give the equal and fair amount of incentive to the employees. There must be a

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proper horizontal system of communication developed so that the employees who are unhappy
with the reward and the recognition system can freely talk about their opinions and their
complaints to their managers. This will ensure that the employees are happy and are being able
to give in their hard work and their effort just like before

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References
Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life
Science Journal, 14(5), pp.12-16.
Cassar, V. and Bezzina, F., 2017. EVIDENCE-BASED HRM THROUGH ANALYTICS:
REDUCING THE PROPENSITY OF HRM TO BECOME A CINDERELLA. Management
Sciences/Nauki o Zarzadzaniu, 32(4).
Habib, N., Awan, S.H. and Sahibzada, S.A., 2017. Is Herzberg's Two Factor Theory Valid in the
Context of Performance Management System? A Study of Private Banks of Pakistan. Journal of
Managerial Sciences, 11.
Holmberg, C., Caro, J. and Sobis, I., 2018. Job satisfaction among Swedish mental health
nursing personnel: Revisiting the two‐factor theory. International journal of mental health
nursing, 27(2), pp.581-592.
Luqmani, A., Leach, M. and Jesson, D., 2017. Environmental Innovation and Societal
Transitions. Environmental Innovation and Societal Transitions, 24, pp.94-105.
McDermott, A.M., Fitzgerald, L., Van Gestel, N.M. and Keating, M.A., 2015. From bipartite to
tripartite devolved HRM in professional service contexts: Evidence from hospitals in three
countries. Human Resource Management, 54(5), pp.813-831.
Miner, J.B., 2015. Organizational behavior 4: From theory to practice. Routledge.
Rimi, N.N., Yusliza, M.Y., Walters, T. and Basher Rubel, M.R., 2017. The role of devolution in
HR‐line manager collaboration and HRM effectiveness relationship: A study of private

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commercial banks in Bangladesh. Global Business and Organizational Excellence, 36(4), pp.43-
51.
Sanders, K. and Yang, H., 2016. The HRM process approach: The influence of employees’
attribution to explain the HRM‐performance relationship. Human Resource Management, 55(2),
pp.201-217.
Sarvaiya, H., Eweje, G. and Arrowsmith, J., 2018. The roles of HRM in CSR: strategic
partnership or operational support?. Journal of Business Ethics, 153(3), pp.825-837.
Theurer, C.P., Tumasjan, A., Welpe, I.M. and Lievens, F., 2018. Employer branding: a brand
equity‐based literature review and research agenda. International Journal of Management
Reviews, 20(1), pp.155-179.