Reward Management

Directors of Human Resources for payment systems to compensate employees based on the strategies and policies of the `organization, processes and systems of job evaluation have payment arrangements, such as the Equal Pay Act 1970, the Equal Pay (Amendment) Act 1983, the Human Rights Act in respect of employment in 1996, the National Wages Act 1998.




Different payment strategies have identified two main types of payment systems, and to the output and the payment system based input. Scientific management system Fredrick Taylor suggested that the emphasis on the quality of production output quantity easily measurable. Low value-added service jobs are suitable for this method. Alternatives include more sophisticated measured day work, payment based on time, and the use of incentive programs for employees. Entry system based measures relevant to an employee who adds expertise, technical or professional skills transcending current organization skills or abilities. Knowledge allows the maintenance of these essential basic workers with attractive salary packages as an incentive. For example, retention payments and severance pay are included in the data on the remuneration of healthcare executives, including CFO `s. Retention payments are designated money transfers a certain amount or a percentage of your salary to be paid to executives who remain with the organization for a specific period of time. Compensation offer salary continuation and benefits a part of health care for a predetermined period after the end of the executive of the organization period.

The transactional relationship between employees and the change in work organization have control salary vanity divergent other factors, such as job security, promotion of employment and pay dispersion. Job security guarantees engagement between the organization and the employees, so that the employee continues to work on the organization of the specified duration and less condemned the ban rules and regulations of the organization, the standard protocols and patient care safety. Promoting higher labor facilitates career, increase incentives and other benefits determined on the basis of performance indicators for each candidate. However, the organization that makes it more difficult to provide the results of internal career turnover of labor. The difference between the rates of pay, including leadership and the rank and file lists the differences in skills / qualifications of employees. In the absence of evidence of their results, citing the imbalance mandatory profiles, and further erode morale and organizational commitment of employees.

The revolutionary concept of reward system has changed the understanding of the range of human needs and rewards so desired. Theories of motivation and the scientific study of behavior derived key issues include the extent to which people tend to be motivated by money alone, or other problems intrinsic rewards of his work. Maslow (1954) suggests a hierarchy of needs that the individual is deemed to serve the increasing basic physiological needs, through the needs of security and safety, and social needs of love, needs to self-esteem, both others and oneself, and finally the development or implementation of a `s own true potential. In this context, the basic pay, sick pay, pensions and the right could meet the needs of security and a work environment where risks are well controlled work could meet the security needs. Leisure activities, sports and social clubs, which facilitates interactions at work, could satisfy social needs. Position in the organization and symbols of success is relevant to the needs of government contribution and recognition. Experience by which the individual acquires knowledge and key skills, and pass a demanding and difficult could reach the satisfaction of self-actualization needs.

Herzberg (1966) developed the theory of the specific and intrinsic motivation that distinguishes (motivation) extrinsic rewards (hygiene factors). Approach offers reward tradition with incentives not work likely to result in job satisfaction. Extrinsic factors such as security and relations with superiors, colleagues and subordinates work feeling discontent perpetuate rather not improved or maintained. Intrinsic factors or factors leading to job satisfaction are identified by Herzberg as the realization, recognition and interest in the work itself, responsibility, advancement and growth.

S (1964) Vroom expectancy theory "is useful to highlight the complexity of the process of individual thought, which may or may not lead to action. In practice, it is difficult to put into practice the theory of expectations, because the results of theoretical assumptions to determine if it is likely to lead to the achievement of a specific task, and the most important is whether the success in the task to individual `s efforts as personal loyalty above any possible action. However, you can collect social needs of employees through this process that the organization is trying to align the interests of employees with those of the organization. Social needs may also be considered relevant in the context of the working group or team.

S (1965) `Adam Equity theory, which emphasizes the importance of a sense of fair treatment and possible manifestations of behavior may be the result of perceived inequality. In an employment situation, taking into account two important variables, input and output. Education, skills, experience and efforts are regarded as inputs and wages, benefits and career advancement seen as outputs. People compare each other `s input and the components of the product, and if they feel the injustice, the sense of injustice can lead to conservation efforts, limit output, reducing cooperation and even withdrawal.

The culture and values ​​of the influence of the organization S is contracted and how it is structured in a compensation strategy. Strategic business plan clearly explain its purpose, eligibility criteria, performance goals for individuals, departments, and organization, rewards and how they will be paid. There are a variety of payment plans, long-term rates, payment by results, performance payments based on pay, skills / individual / skill and flexible benefit plan group.

Hourly rates: When a reward system is linked to the number of hours worked, which is known as a payment system based on forward rates (at an hourly rate, weekly wage or monthly salary).

Payment by results: payment by results links payment of the amount of the productivity of different products to graph, which is common in manufacturing.

Performance-based compensation: The individual's performance is measured against predetermined objectives, or in relation to different tasks listed in the job description, the use of performance evaluation techniques.

Profit related pay: Companies offer salary related benefits in the form of a bonus that is paid in addition to the existing salary.

Base Salary: base salary of competency focuses on inputs consisting of knowledge, skills and abilities, injected into the employment of workers (Donkin, 1998).