Reward & Remuneration

Reward & Remuneration



Rewards or Pay (Monitory) is considered as the powerful motivator, as it is the fundamental for completion of a task, as a medium of exchange, maintenance factor which directs towards motivation, as a score card by which employees value themselves, then the reinforcement and expectancy as a motivator. And it is a powerful motivator for employees who are lack and in need of money.

Accordingly it is true that the main aim of these financial and non-financial rewards  or pay provided by the organization are to increase the motivation of employees and make them work to achieve the aim or goals of the Company.

There are certain types of Pay or Remuneration used in organizations such as,

Financial incentives
§  Performance related pay: this is a systematic process of identifying and highlighting exceptional performance and rewarding such performance.
§  Spot rate: allocation of a specific rate for the job.
§  Profit related pay: this scheme allows the employees to receive a particular percentage of the profit.
§  Piece rates: this is where employees are paid based on the number of units they manufacture.
§  Graded pay: a sequence of job grades against which a payment range is attached.
§  Broad banded: the range of pay in a band is significant higher than the conventional graded structure.
§  Individual job ranges: use where the content and size of the jobs is widely different throughout the organization.
§  Job family structures: consist of jobs in a function or discipline such as financial specialists.
§  Integrated pay structures:  cover group of employees who have traditionally being paid under separate arrangements.

Non-financial incentives

§  Boost social relationships.
§  Structure the organization positively motivating the workforce.
§  Develop a positive culture or celebrate success by making employees feel valued and motivated.
§  Communicate positive messages such as working conditions, rest breaks and availability of refreshments.
§  Introducing job variety such as, job redesign, job rotation, job enlargement, job enrichment and job simplification.
§  Clear goals and Provide resources.

References
https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-management/training-and-development/
SLIAT study Pack
Boxall P , Purcell J, 2003. Strategy and human resource management. In: New York: Palgrave Macmillan
Donaldson, C., 2004. Main Roads W A: dynamic HR HR Magazine. [Online] Available at: http://www.humanresourcemagazine.com.au/articles/B0/01FD

Comments

  1. Thilina RajapakseNovember 13, 2019 at 4:28 AM

    Good work kavishka.well explanation has been given to the topic.

    ReplyDelete
  2. Sajith AbeyrathneNovember 21, 2019 at 8:44 AM

    Well explained the topic

    ReplyDelete
  3. Sameera Madhawa Thalakotune November 30, 2019 at 9:20 PM

    Amazingly explained all the part of the topic, Thank you

    ReplyDelete
  4. Yohan RatnayakeJanuary 10, 2020 at 12:19 AM

    No discussion of motivation would be complete without considering rewards. Let’s add two kinds of rewards, extrinsic and intrinsic. Extrinsic rewards are tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors. External agents (managers, for example) determine and control the distribution, frequency, and amount of extrinsic rewards, such as pay, company stock, benefits, and promotions.

    ReplyDelete
  5. Sandeep WarakagodaJanuary 11, 2020 at 5:07 AM

    You have clearly explained about the topic and its importance! keep up the good work brother!

    ReplyDelete
  6. Dr Amila Shashanka RatnayakeJanuary 14, 2020 at 10:11 PM

    All kinds of rewards are not working in your industry. It is worth while to investigate what will work for you.

    ReplyDelete

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