Reward Management: The Importance Of Employee Management

In many organizations, reward management has been seen to be a vital instrument in employee performance Guest (2002). A well rewarded employee feels that they are valued by the company. Such employees are encouraged to work harder and better if they are aware that their wellbeing is taken seriously by their employers, and that their career and self development are also being honed and taken care of by their company. Employees are the engine of organization vehicles while reward is the fuel. No organization can achieve its stated objectives without its employees. Akerele, (2001) blamed the productivity of many employees on several factors; employer’s failure to provide adequate compensation for hard work. Markova and Ford (2011) mentions that

A person will only perform at a certain level if they believe that the performance will lead to a given expressed outcome. Instrumentality can be described as the thought that if an individual performs well, then a valued outcome will come to that individual. This well explained by the instrumentality theory Reward has therefore been seen to be a vital instrument in employee performance. This is because a well rewarded employee feels valued by the company. The employee is thus encouraged to work harder and better if they are aware that their well-being is taken seriously by their employers, and that their career and self-development are also being taken care of by their company thus increasing employee performance, Condly et al,(

Well rewarded employees are more productive, more efficient and more willing to work towards organizational goals than the employees who are experiencing low levels of rewards Hunter et al (2010). Entwistle (2007) is of the view that if an employee performs successfully, it leads to organizational rewards and as a result motivational factor of employees lies in their performance. The highly motivated employees serve as the competitive advantage for any company because their performance leads an organization to well accomplishment of its goals Rizwan and Ali ( 2010).Employees who are effective and efficient are likely to be limited if they are not given appropriate rewards to Perform. Mendonca, (2002) looks at reward and compensation system that is based on the expectancy theory, which suggests that employees are more likely to be encouraged to perform when they perceive there is a strong link between their performance and the reward they receive. Guest, (2002) is of the opinion that reward is one of the keys that motivate employees to perform as expected. Reward management schemes are all designed to enhance company performance by aligning the interests of employees with the financial performance of their companies Chin-Ju (2010). Huselid (2005) looks at reward as a system (profit sharing) that contributes to performance by linking the interests of