Organizational Reward Systems

By reading the "ORGANIZATIONAL REWARD SYSTEMS" article we realize that we have faced the concepts in action or maybe implemented a few of them during our career paths.

We usually forget how we were motivated in early years of our work and by looking back we see different techniques and methodologies that had their own characteristics and respective impact.

By looking what my previous organizations did and faced; I believe, the best reward systems can not do magic by their own and they require micro attention and control. In general, to have a good understanding of a reward system we have to look at a broader range of activities rather than financial benefits.

For example: a team manager markets (exposes) his/her team achievements loudly within organization. Team members leave jealousy behaviours of theirs and focus on increasing team achievement. Most of the time small actions (like listening with care, taking into consideration, direct support) go inside reward system.

But in reality as soon as we talk about reward the first thing is "raise", or "bonus" which in my point of view is not the best option all times. And by knowing that measurement and constant evaluation based on analysed metrics are the main factors that enable managers to have justifiable judgement over performance, we do see in business somehow that decisions are not made based on them.

I had two questions in that regard as following which were answered by some of my classmates.

1. How can we keep a reward system healthy and mutually profitable for employee and organization?

Nicola Said: With both constant AND consistent monitoring and readdressing of results. Feedback exchange between employees and organization and if the results are not working for both, open discussion on what could be changed. I note "open" discussion because if employees are not involved and the goalposts are changed you will then have issues through changed 'Expectancy' (ie: Effort ->Performance->You Changed the Goal/Reward = I didn't get my expected outcome!).

If the organization however wishes to focus on only the results of the behaviour and ignore the employee expectations/attitude/feelings, and change the actions moving forward based on the results from those past actions then it will follow the Reinforcement Theory.

Jalal Said: First i think it's for the management to set a healthy and mutually profitable reward system.
Usually they look to the company profit first and than the employee comes which is logic.
I think by communication with upper management we can offer them our creative ideas.


2. What are the pros and cons of publicizing employee performance and rewards?

Nicola Said: The pro's could be through following employee recognition but as the assignment materials indicate this could result in employee cynicism. I also believe through too much publicising/hero pedastooling of employees you can end up unwittingly managing with a "divide and conquer" mentality. Publicising the actual rewards or rewards scheme might be a good idea as this can reinforce more publicly to the whole organization your intention as a company, show deliverability of the reward etc.


~Sina Ghazi