Supporting Good Practice in Performance & Reward Management Report

This report delves into the crucial role of reward management in enhancing employee performance and motivation within organizations. It begins by defining the concept of total reward, encompassing both financial and non-financial benefits like learning and development, which fosters empl...Read More

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HRM

Contents
Introduction...........................................................................................................................................2
Concept of total reward.........................................................................................................................2
Intrinsic and Extrinsic reward................................................................................................................2
Pros and Cons of offering intrinsic benefits...........................................................................................3
Pros and cons of offering extrinsic reward............................................................................................3
Conclusion.............................................................................................................................................4
References.............................................................................................................................................5

Supporting Good Practice in Performance & Reward Management
Task 1
Introduction
It is true that reward plays a significant role in motivating the employees in organisation to
perform better. Reward has the direct link with the performance of employees. In addition to
the financial benefits, it is also essential to provide the non-financial benefits to employees in
terms of recognition. When performance of employees are seen, it is essential to consider
several factors such as sitting arrangement, working conditions as well as stress management
of employees at workplace. These certain conditions are required by a manger to manage the
performance of employees.
Concept of total reward
Total Reward is said to be the reward strategy that brings together every investment that is
made by an organisation in its workforce such as pay, learning and development and
pensions. In this approach, organisation goes beyond the basic pay by showing different
benefits within the package of employment. It tends to promote as well as encourage the
engagement that in turn helps in improving the organisation performance (Velmurugan &
Sankar, 2017). It is long term approach that does not required to complex. In this way, total
reward includes both monetary as well as non-monetary benefits that can assist the
organisation in enhancing and promoting their reputation as great place to work. However,
the success of total reward depends on the clear communication (Singh & Behera, 2016).
Intrinsic and Extrinsic reward
It is true that motivating employees with rewards and incentives are one of the best way to
improve the employees performance. Two types of rewards can be given to the employees for
motivation. Intrinsic rewards are said to the non-physical rewards. This kind of reward is
emotionally

connected with the employees. However, it is directly related with the performance of
employees. sense of achievement is the first element of intrinsic reward. It takes lot of skills,
efforts, as well as courage to perform any of the tasks. Sometimes, work of employees is also
praised by the seniors due to whom employees become more happy. Besides this, every
person in the organisation wants to be get recognition at the workplace in order to feel
positive. It is reward for the employees when they are being recognised by any of the member
or co-worker of the company for their work which they have done. When employees give
their best to bring better productivity on their part, supervisors also bother very less in
managing them. Therefore, the freedom that employees receive in making their self-decision
is also one such form of the intrinsic reward for employees.
Pros and Cons of offering intrinsic benefits
The major advantage of intrinsic benefit is that when any of the employees is intrinsically
motivated toward the goal, it has another level of personal, internal or professional fulfilment.
This provides the sense of personal fulfilment to the employees. at the same time, several
limitations are also attached with the intrinsic reward because not all employees being
motivated by this reward system. Therefore, intrinsic reward is best approach for only those
staff member who want to be rewarded or recognised with the monetary compensation.
As compare to the intrinsic reward, extrinsic reward is the physical ones that are directly
attached with the employees (Rasskazova, Ivanova and Sheldon, 2016). Pay is the most
effective extrinsic reward that means a company is required to design very good system of
payment. It works as the most significant factor that tends to affect the job satisfaction.
Whenever company receive the higher profit due to the best effort of its employees, then it
should also appreciate the contribution of employees by paying them better. In the form if
commission or bonus, company is required to appreciate the efforts of employees. Fringe
benefits are also said to be the some other facilities that are given or offered to the employees
in addition to the salary. It can be in terms of pension plan, employee discount scheme, as
well as company car.
Pros and cons of offering extrinsic reward
The main advantage of the extrinsic reward is that it works from the outside. For example-
any company who reach to the team goal as a collective effort is motivated extrinsically. The
best example of this type of reward is the team bonus when the entire team achieve the

objective. The negative side of this reward system is that low performing members in the
team tends to frustrate the high achieve members in the team.
Therefore, company should give emphasis on both the type of reward. It is because
employees need intrinsic motivation also and extrinsic motivation also. It can organise the
weekly recognition system where employees will be given the appreciation who will perform
best. At the same time, some incentive can also be given in monetary terms. For their better
contribution in improving the business productivity, they should also be given some
advantage. In addition to this, it is also significant to provide the commitment and trust by
offering the individual development and growth that will contribute to the healthy wellbeing
of the employees by bringing effectiveness to the organisation as well.
It is also rightly stated that employees always want to join the organization not for the getting
best or great experiences but they are also interested in the perquisites that will further assist
them in growing better outside of the workplace. Total Rewards on the other side is said to be
the concept that defines the entire tools presented to an employer that might be used to
motivate, attracts as well as retain the employees (Schlechter, Thompson and Bussin, 2015).
Conclusion
In the limelight of above discussion, it can be concluded that reward and performance
management goes side by side. If effective reward plan is made for the employees, it will
help in bringing the positive impact on the performance of employees. At the time of
measuring performance, it is also essential to know the stress that employees are facing in the
organisation. There are times employees face stress due which they are not able to perform
effectively in the organisation. Due to this, it is essential to ensure the positive activities in
the organisation.

References
Abdullah, A. A., & Wan, H. L. (2013) Relationships of non-monetary incentives, job
satisfaction and employee job performance. International Review of Management and
Business Research, 2(4), 1085
Holston, C., & Kleiner, B. (2017) Excellence In Reward Systems. Global Education
Journal, 2017(1).
Khern-am-nuai, W., Kannan, K., & Ghasemkhani, H. (2018) Extrinsic versus intrinsic
rewards for contributing reviews in an online platform. Information Systems Research, 29(4),
871-892.
Schlechter, A., Thompson, N.C. and Bussin, M. (2015) Attractiveness of non-financial
rewards for prospective knowledge workers: An experimental investigation. Employee
Relations, 37(3), pp.274-295.
Seaward, B.L. (2017) Managing stress. Jones & Bartlett Learning
Zheng, Z., Oh, J. and Singh, S. (2018) On learning intrinsic rewards for policy gradient
methods. In Advances in Neural Information Processing Systems (pp. 4644-4654).