Page 1 of 4
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 11
November 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 323
Emerging Trends in Reward Management
Prof Sandeep Kaur
(Assistant professor in commerce department) SGGS Khalsa College, Mahilpur
(Punjab), India.
E-mail: skrandhawa688@yahoo.com
Abstract
Reward refers to anything given to a person
because of his contribution to organization.
Rewards are the attractive and motivational
tool that induces the behaviour of the
employee. The traditional reward policy is
no more acceptable in modern era.
Employees don’t get motivation from simply
wages and salaries. They want something
extra for their extra hard work and
commitment to the organisation. So,
rewards are very important for motivating
employees, improving performance and
satisfaction level, reducing labour turnover
in the organisation. Rewards motivation and
performance are closely interlinked.
Employees may have different behaviour in
organisation with different performance
potential and needs. So reward management
deals with all these matters that what type of
rewards may be given to a particular person
according to his behaviour. Reward
management consists of analyzing and
controlling employee remuneration,
compensation and all of the other benefits
for the employees. This study focuses on the
emerging trends in reward management.
Keywords: Reward management,
motivation, reward strategy, employee
performance, employee satisfaction
Objectives of the study
The objective of the paper is to understand
the concept reward and reward management.
This paper also aims to study the emerging
trends in the reward management.
Introduction
Reward refers to anything given to a person
because of his contribution to organization.
A well designed reward system should be
consistent with organizational goals, visions,
missions and job performance. In
managerial term, reward is defined as the
total return given by an employer to an
employee for rendering his/her services
towards the organizational objectives.
Reward attracts a worker's attention and
motivates him/her to perform the task.
Management of reward concept helps to
maintain and improve organizational
performance. Reward management is a vital
aspect of HRM. Because a well-designed
reward system will lead towards
organizational productivity and employees
satisfaction. It is the process of creating,
implementing and controlling an effective
reward system can be retained or motivated
at work. Hence, reward management is a
crucial aspect of HRM that revolves around
designing and implementation of appropriate
and suitable pay and incentive system. This
system helps improve organizational
Page 2 of 4
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 11
November 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 324
performance and get people motivated at
work.
What is Reward Management?
Reward management is a motivational
practice that businesses use to reward
employees for their contribution to the
company. Reward management is concerned
with the formulation and implementation of
strategies and policies that aim to reward
people fairly, equitably and consistently in
accordance with their value to the
organization.
Purpose of Reward Management
The main purpose of reward management is
to motivate employees by some type of
reward or compensation for production,
performance and work quality improve.
Reward management is important for the
following reasons:
To attracts, motivate and retain
employees
To avoid the cost of hiring and
training new employees
Types of
Rewards in
HRM
1. Classification on
the basis of feelings
i. Intrinsic reward
ii. Extrinsic reward
2. On the basis of
Economic value
i. Financial reward
ii. Non Financial
reward
3. On the basis of
evaluation
i. Performance based
reward
ii. Membership based
reward
Organization Chart
Page 3 of 4
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 11
November 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 325
To create employee loyalty and
honesty
To Creates a healthy work
environment
To encourage positive attitudes and
behavior
Makes employees more likely to
seek advancement
To improve the company's
reputation
Emerging trends in Reward management
Following are the emerging reward
management trend in today’s scenario.
HR departments are paying greater
sensitivity to sector and functional
market practices to enable more
effective market positioning to help
with attracting and retaining highly
efficient and able employees.
Reward strategies are implemented
increasingly focused on performance
awards starting at the top and
working down through organizations
as performance orientation increases.
Today pay is linked to the market
value and individual or team
performance not to the service
and/or cost of living.
Rewards are given to success- oriented individual in the form of
bonuses rather than payment
increases in base pay.
Rewards are paid to teams rather
than individual so it increases the
performance of the team.
More flexible pay structures are
followed by the HR department
based on job families and using
broader pay bands or pay curves.
Integrated pay structures covering all
categories of employees are
implemented.
Today many HR departments
implement skills and competency
based pay processes which reward
the acquisition and use of new skills
and behaviors.
Integrated performance management
systems are launched with the main
focus on coaching development,
motivation and recognition through
the identification of opportunities to
succeed.
More flexible approaches are used
for job evaluation which enable a
move away from the control of
uniformity to the management of
diversity. This will make use of
techniques such as job family
modeling and computer assisted job
evaluation.
Increased awareness of the need to
treat job measurement as a process
for managing relativities which, as
necessary, has to adapt to new
organizational environments and
much greater role flexibility and can
no longer be applied rigidly as a
system for preserving existing
hierarchies.
More emphasis is given on the
choice of benefits and ‘clean cash’
rather than a multiplicity of
perquisites by the HR department.
There is greater creativity and
sensitivity in benefit practice in the
companies.
Top rewards trends in India
