Reward and Recognition

 


The success of any firm depends on the input of its employees. Establishing a balance between employees' contributions to the company and the organization's contribution to the employee is necessary for this aim, this is one of the factors that led firms today to recognize the value of rewards and recognition in order to increase the employees' contribution to the organizations (Zeb, et al., 2014). 

In the past, the majority of reward and recognition programs were nebulous and frequently handed out in reaction to a manager's judgment of an employee's great performance. In most cases, there were no predetermined criteria by which outstanding performance might be assessed, and it may have meant anything from having a positive attitude to helping another department or always being on time (Ali & Ahmed, 2009). It results in increased job satisfaction, which eventually improves performance. Therefore, each and every firm faces the task of ensuring that their staff are highly engaged, Employee motivation is correlated with the effectiveness of the rewards and recognition program (Zeb, et al., 2014).

Employee recognition is a positive feedback practice that an organization adopts based on their evaluation of each employee's value, including work output, time commitment, and dedication (Yang , et al., 2022). Giving employees encouraging feedback can boost their self-esteem, enable them to reach their full potential, and increase their drive to get better. Employees who are acknowledged have a tendency to see organizational support for the application of their strengths, which arouses their excitement and passion for their work (Yang , et al., 2022). Employees are significantly influenced by this input, which also provides them with the precise guidelines that the company wants, the acknowledged personnel will be more willing and able to put in more effort to complete the duties, increasing their work effectiveness and output, employee appreciation can help people feel connected to organization and more aware of their roles and responsibilities at work as a result of good feedback practices (Baqir , et al., 2020).

A reward can be anything that an organization gives to its employees, whether intentionally or unintentionally, in exchange for their potential or actual work contributions, and to which the recipients as individuals attribute a positive value as a fulfillment of specific self-defined needs (Shields, et al., 2016). Rewards can be both tangible and intangible, all monetary and non-monetary returns that an employee receives from the company are considered a reward. Base salary, performance compensation, required benefits, fringe benefits, and more are all examples of financial returns. Non-financial gains include the chance to learn and grow, improve one's quality of life, advance one's career, and have the chance to collaborate with smart individuals (Mukherjee, 2012).



Figure 1 indicates, rewards can be divided into two broad categories: “Intrinsic and Extrinsic”

                                      Source: (Shields, et al., 2016)


A person who receives a reward for carrying out a certain activity or job, which is essential to improving employees' performance and the efficiency of the company, falls into one of two categories (Shields, et al., 2016).

Extrinsic and intrinsic motives are created by considering the viewpoint of the workforce. Extrinsic rewards, including as compensation, benefits above what is required, commissions, status, and advancement, on the other hand Conscientiousness, the work atmosphere, opportunities to advance their careers, and meaningful work are examples of extrinsic rewards. Therefore, another study found a direct correlation between low pay and the amount of profit an organization makes. When wages between low and high earners diverge, workers become less motivated, less devoted, and less productive (Riasat, et al., 2016).

Workplace intrinsic pleasures include feeling proud of your work, receiving respect from bosses and/or coworkers, growing personally, winning managers' trust, engaging in pleasurable work, feeling accomplished, learning something new, or increasing proficiency in a certain field (Riasat, et al., 2016). 

In this research area, there are certain restrictions on the relationship between intrinsic rewards and employee performance. Prior study nearly completely neglected the fact that intrinsic rewards are always not tangentially related to employees' performance because mentalities differ from person to person. According to certain research, empowerment and appreciation have a negative impact on employees' performance, yet sometimes empowerment is seen as one of the more important intrinsic characteristics (Riasat, et al., 2016).


References

Ali, R. & Ahmed, M., 2009. The Impact Of Reward And Recognition Programs On Employee’s Motivation And Satisfaction: An Empirical Study. International Review of Business Research Papers, 5(4), pp. 270-279.

Baqir , M., Hussain, S., Waseem, R. & Islam, K. M. A., 2020. Impact Of Reward And Recognition, Supervisor Support On Employee Engagement. American International Journal of Business and Management Studies , 2(3), pp. 10-12.

Mukherjee, J., 2012. Designing Human Resource Management Systems. 1st ed. Delhi: SAGE Publications India Pvt Ltd.

Riasat, F., Aslam, S. & Nisar, Q. A., 2016. Do Intrinsic and Extrinsic Rewards influence the Job satisfaction and Job performance?. Journal of Management Info, 11(1), pp. 16-34.

Shields, J. et al., 2016. Managing Employee Performance and Reward. 2nd ed. Sydney: Cambridge University Press.

Yang , T., Jiang, X. & Cheng , H., 2022. Employee Recognition, Task Performance, and OCB: Mediated and Moderated by Pride, Wuhan: School of Economics and Management.

Zeb, A., Rehman, S. u., Saeed, G. & H., 2014. A Study of the Relationship between Reward and Recognition and employees Job Satisfaction. Abasyn Journal of Social Sciences, 7(2), p. 278.

 


Comments

  1. Nilusha WanasingheNovember 18, 2022 at 5:59 AM

    I totally agree with the content of your blog post Zacky. Adding to your content, Reward and recognition strategies positively affect motivation, performance and interest of employees within an organization. And a little more problematic, team-based incentives, if designed appropriately, can also boost and support employees for a range of positive outcomes (Patricia Milne, 2007).

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    1. Zacky HassanNovember 26, 2022 at 10:48 AM

      Thank you for your advice Nilusha, I agree with your content. definitely I will add your points to my blog in future. Rewards based on team performance are likely to have an impact on a company's capacity to recruit, keep, and encourage people as well as define the company's culture. When team-based incentive programs are compatible with the objectives to be achieved as well as the nature of the team's work, they should be chosen (Franco-Santos & Gomez-Mejia, 2015).

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  2. Dehara de ZoysaDecember 6, 2022 at 9:22 AM

    Zacky very informative and thorough article. Further I'd like to add that research also shows that if an employee is rewarded through the organization, their behaviour is not affected when it comes to knowledge sharing among employees. However, if an employee is motivated intrinsically they are more likely to share their knowledge, attitudes, and intentions to a better work place environment (Lin, 2007).

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    1. Zacky HassanDecember 10, 2022 at 12:45 AM

      Thank you for your valuable points Dehara, Organizations use rewards and recognition to demonstrate the value of their employees. Effective rewards and recognition strategies also demonstrate that an organization cares about its employees' well-being and is willing to invest in them. Recognition serves as a reminder of excellent performance. Such acknowledgement can help to reinforce that the organization values the employee. When employees receive praise and recognition for their efforts, they frequently respond with a sense of obligation and continued high performance (Madhani, 2020)

      Delete
  3. Tharaka De VisserDecember 8, 2022 at 4:21 AM

    Agreed on the above content Zacky, the tactics, regulations, and procedures required to ensure that employees are valued for their contributions to the achievement of organizational, departmental, and team goals are known as reward management. It involves the creation, implementation, and upkeep of incentive systems that are meant to operate fairly, equally, and consistently while also meeting the needs of the company and its stakeholders. These systems will include procedures for determining the value of jobs through job evaluation and market pricing, grade and pay structure design and management, performance management processes, programs for rewarding and recognizing people based on their individual performance or contribution, and/or team or organizational performance, and the provision of employee benefits. (Armstrong, 2010)

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    1. Zacky HassanDecember 10, 2022 at 12:42 AM

      Thank you for your valuable comment Tharaka, Practices of rewards and recognition are essential components of HR strategy. The material and psychological payoffs given to an employee for performing well at work are referred to as rewards. Organizations cannot simply replicate the practices of other organizations in terms of rewards and recognition. Rather, a rewards and recognition strategy should be developed to support a company's distinct culture. Creating these strategies has traditionally been considered more of an art than a science (Madhani, 2020).

      Delete
  4. Manodya PereraDecember 10, 2022 at 1:05 AM

    Very interesting blog Zacky. Also, Rewards are the material and psychological payoffs given to an employee for performing tasks well in the workplace. Organizations can’t merely replicate the rewards and recognition practices of other organizations. Rather, a rewards and recognition strategy should be created to support an organization’s unique culture. Developing these strategies has typically been more of an art than a science (Madhani 2020).

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    1. Zacky HassanDecember 10, 2022 at 9:21 AM

      Thank you for your valuable comments. The concept of reward and recognition has grown in importance in recent years, capturing the attention of both organizational managers and researchers. As a result, around the world in various organizations, reward and recognition are used as motivational techniques to improve employee performance. For certain desirable behaviors, these rewards and recognition are provided in the form of monetary and non-monetary benefits (Mark, 2006).

      Delete
  5. RahmanDecember 10, 2022 at 4:05 AM

    Well written article and agree with you on the reward and recognition can provide employee self satisfaction and feel valued within the organization. In turn created a positive workforce.

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    1. Zacky HassanDecember 10, 2022 at 9:23 AM

      Every organization faces the challenge of ensuring that their employees are highly motivated. Employee motivation is linked to a well-functioning reward and recognition system (Arnold and Feldman, 1986).

      Delete

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