Journal Of Business Economics Management -Myassignmenthelp.Com

Question: Discuss About The Journal Of Business Economics Management? Answer: Introduction Employee performance and rewards management is a process of rewarding the employees in terms of various benefits, compensations and wages to ensure that the employees are satisfied with their job role, provide their best foot forward and give maximum productivity. The reward management system was introduced after the psychologists studied the behavior of the individuals how the people reacts to rewards and compensations and how it motivates them to continue with their best performance. The psychologists have created certain motivational theories, which are closely related with the ideas of motivational reward system. In this report the article related to Samsung paying reward to the employees will be analyzed, the main issue of rewards will be explored. The topic will also be discussed relating it with the employee relations challenges, performance management, learning and development, motivation and rewards, managing diversity, and employee turnover and retention. Having an efficient system of reward, is compulsory so that the employees come to know in details about their task sand display the skills to do it, they will have the level of motivation required to work and provide best performance. The chief purpose of this report is to identify the issue related to performance reward management, analyze the theories related to the topic and finally to provide solutions to the problem. The Issue Related To Performance and Rewards in the Story The story provided in the article is about the company Samsung, the company has paid special bonus to their employees belonging to their mobile division who were sincere in their work (Haider et al., 2015). Despite of the poor performance of the company for that year, they kept the division running and prevented any unnecessary ramp down in the company, as Samsung was not doing well in business during the year. Samsung has taken up this initiative to motivate their employees during such a trying time by paying them bonuses (Pepper Gore, 2015). According to the words of a Samsung official, Samsung will try to motivate workers through proper compensation. The decision for maximum bonuses to mobile employees includes the company managements hopes to proceed on their given mission under new leadership. The chief issue to identify in this report is to find out the role of rewards and performance pays and how that motivates the employees, whether financial compensation really motivates th e employees to continuing with their best performance, how is compensation related to employee motivation (Joshi et al., 2015). The Theories on Compensation or Rewards and the Performance of Employees To understand which of the components of compensation are better in effectiveness, the theories of remuneration of employees are required to be (Caza, McCarter Northcraft, 2015). There are three such theories of employee compensation Reinforcement and Expectancy theories, Equity theory and Agency theory. Reinforcement Theory According to the Reinforcement theory, the action of a person which is rewarded or appreciated is going to be repeated again(Malik, Butt Choi, 2015). The effect of compensation is that if an employee provides high quality of work and for that, if monetary rewards are given to that employee then he/she will be more likely to continue producing such work again (Lee et al., 2015). Following the same theory, if a high quality performance is not followed by respective compensation then it is likely that such action will never be repeated again in the future (Terera Ngirande, 2014). The theory emphasizes the importance of a person actually experiencing the reward. Expectancy Theory Similar to the Reinforcement theory, Expectancy theory propounded by Victor H. Vroom a professor in Yale School of Management, focuses on the connection between compensations or rewards and behavior(Hameed, Ramzan Zubair, 2014). According to the Expectancy theory, motivation is the product of valence, assistance and individual expectancy. The systems of remuneration can vary when these motivational components will be impacted. Valence of pay and its outcomes remain the same within different remuneration systems. The Expectancy theory deals more with the design of a job and training rather than pay framework. Equity Theory According to Equity theory, the employee who experiences inequity or unfairness in his/ her compensation always seeks to bring in equity(Kala, 2015). The theory proposes equality in the remuneration framework of the employees. The treatment of the employees by their firms holds utmost importance to them. The statement which says a fair day work for fair day pay brings about a sense of equity among the employees. When employees experience inequality then it can result in decrease in productivity, high number of absentees or decrease in revenue of the company. Agency Theory The agency theory emphasizes on the various goals and aims of the stakeholders oh an organization and the ways in which remuneration of an employee can be modified to suit those goals. In a business unit, the two stakeholders are the employees and the employers, employees take upon the role of principals and the employees play the role of agents (Aslam et al., 2015). It is natural that the employees expect high agency costs while the employers seek to minimize it. According to the agency theory the employer or the principle must pick a contracting plan that can adjust the interests of the employees or the agents with the interests of the employer. These agreements can be delegated either behaviour oriented (e.g. merit pay) or outcome oriented (e.g. stock option schemes, profit sharing, and commission) At the primary sight, outcome oriented contracts appear to be the most favourable arrangement. The benefits enjoyed by the employees increase with the increase in the profits of the company, and at the same time the rewards decrease if the employer experience loss of revenue. The Different Types of Rewards Rewards are required in the organizations and they play a huge role in motivating the employees (Howard,Turban Hurley, 2016). They serve the purpose of achieving higher organizational goals, help in securing better quality of employees and to increase their annual revenue. The foremost objective is to build individuals' eagerness to work in one's organization, to upgrade their efficiency. There are two sorts of prizes: Extrinsic rewards: solid amount of rewards that the employees receive. Bonuses: By and large consistently, Bonuses impels the employees to put in all endeavors and tries in the midst of the year to achieve more than a satisfactory assessment that grows the likelihood of obtaining a couple of pay as particular sum (De Gieter Hofmans, 2015). The plans related to bonuses differs within organizations; while some of the organizations ensure fixed amount of bonuses, on the other hand other organizations pay bonuses to their employees on the basis of their performance throughout the year, this process rather increases the chances of biases to occur and that may ultimately lead to employee dissatisfaction and loss of productivity. Therefore, managers must be careful to remain unbiased. Salary raise: The employees achieve this type of rewards after a year of hard work, and this raise motivates the employees to gain new skills and improve their performance. The raise in salary results in the long term job satisfaction of the employees. In these, kind of situations related to salary raise the managers should remain unbiased and judge the employees only according to their performance and there should not be any discrimination among the employees. Gifts: These types of rewards are a short-term based appreciation method. Fundamentally presented as a token of gratefulness for an achievement or obtaining an affiliations needed goal (Clot et al., 2015). Any employee would hold this kind of compensation in high regards and they would gain confidence in their work. This kind of reward ensures the employee that his/her way id the correct one and thus they try to keep up the good work in the future as well. Promotion: This is quite similar to the salary raise medium of compensation. Promotions tend to create a long-term satisfaction in the minds of the employees (Al-Emadi, Schwabenland Wei, 2015). This is done by allowing an employee to rise to a higher designation and by providing a higher title; this will of course come with an increase in the responsibilities and accountability. The interest of the employee is increased in this sort of reward as they believe that the administrators will choose the people who will prove to suit the designations best. In this type of rewards as well the people who are in the management should be careful to pick the candidates based on their merits only. Intrinsic rewards: these types of rewards tends to provide certain levels of personal satisfaction to the employees. Information / feedback: This is a significant type of reward which is followed by the effective managers as it holds huge importance to the employee as well as for the management. Feedbacks offer guidance to the employees whether in a positive manner or in a negative manner. This process at the same time create a bond and also adds value to the management and employee relationship. Recognition: Recognition can be explained as the verbal form of appreciation. This kind of reward may be provided to the individual employee through formal meetings or under informal conditions. Trust/empowerment: In the societies or in any organizations, trust is a vital requirement between two individuals or between an employee and the organization. Trust is important in order to complete the tasks successfully, this leads to increase in accountability and helps in winning the confidence of the management, and it also adds importance to the decisions taken by the employee (Aruna Anitha, 2015). Thus, this type of reward will benefit the organizations and provide them the idea that two minds are always better than one. Intrinsic rewards improves the employee to feel valued in the organization, while Extrinsic rewards center around the execution and exercises of the representative with a specific end goal to achieve a specific result. Importance of Rewards or Compensation The compensation system will only be ideal when it will affect the efficiency of the employees in a positive manner and the results will improve. Rewards will encourage the employees to make better performance and to achieve their respective goals, the process of job evaluation will also be improved, and the standards to meet will be also set in a realistic manner(Deery Jago, 2015). The process of achieving compensation should be set in a simple and manner so that the employees feel comfortable to understand the same and work towards achieving their own rewards. The purpose of the rewards and compensation should be to enhance the morale of the employees and to create a bond between the managers and the employees. Conclusion To conclude, Employee reward system is a method set by the companies to retain their employees, to increase the job satisfaction and to improve the quality of performance of the employees. Rewards are different from salary but may be offered in terms of money and in other ways. A reward framework comprises of money related prizes and worker benefits, which together include add up to compensation, it also has non-financial rewards and, in several cases, processes related to performance management. Employees are encouraged by both Extrinsic as well as Intrinsic rewards, to be successful, the reward framework must have both the reward types. All reward framework depends on goals to retain, manage, please and to improve the productivity of the employees. Monetary rewards are an important aspect of the reward framework, but there are several other factors, which motivate the employees to improve the level of their performance. 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