Abstract
Impact of Reward System on Employee Performance in the IT Industry – The purpose of this study was to establish impact of rewards on employee performance. The first research question of the study examined the most important rewards that motivate employees; the second research question examined the relationship between rewards and employee performance, while the third research question examined the ways to improve the performance with reward system. This study adopted a descriptive survey design. The study concludes that employee’s ability, manager’s trust in employees, recognition, and employee’s view of achievement significantly enhances employee’s performance. The study concluded that salaries and wages, paid vacations, paid leave, travel allowances and bonuses are essential components of extrinsic rewards that enhance employee performance. When managers take time to invest in extrinsic rewards, employees feel valued by their organization thus working extra hard to enhance their performance, so they can be rewarded even more. This study recommends that management should invest more into building employee’s professional capacity and capabilities, enhance and build trust in their employees’ ability to perform their duties, in addition to providing sufficient recognition towards employees for work well done. This will not only motivate the employees, but will also establish a sense of achievement that will further enhance performance.
Introduction
Contemporary organizations face various challenges to remain competitive in the Information technology industries and gain sustainable competitive advantage. Nowadays, most companies manage employees of different nationalities, cultures and social backgrounds which make the phenomenon of employee retention even more challenging.
A reward system is important for the employee performance. As employee performance will be more effective to high reward system. Job performance is also part of human resources management. Performance is an important for the organization succession and achieving the goals. There is so much changing occurring in the Information technology in the world an every industry has much relay on employee’s good performance. Rewards are considered an important tool to check the employee’s performance in every organization. Management use rewards for employees motivations. So we can say that effective reward system attract new employees for organization and motivate existing employees to perform high levels. Employee’s good work is necessary to achieve the specific goals. Employees give their good efforts for achieving goals and good effort depends on rewards. In other words we can say that good rewards are most important way to engage the employees with their work and with their organization.
La Belle (2005), various representatives have various requirements about remunerations. A few representatives consider money is adequate to satisfy their necessities and some others needs to material motivators like vehicle, house, and some favor occasions and some incline toward nonmaterial impetuses. Public area workers very much want outward factors then inborn variables, like compensation, as more significant than private area representatives.
Maidani (1991) these two fundamental rewards (monetary and nonfinancial) can be use emphatically to build the presentation of representatives. Monetary rewards for the most part comprise on pay for execution, for example, work advancement, reward, 1 commission, blessings and so on and nonfinancial rewards generally comprise on friendly acknowledgment, appreciation, work kind condition, which means full work duty and so on (Luthans,2000).
Employee Rewards
The term ‘reward’ is generally applied at the managerial levels. Reward systems and their role in organizations have been studied from many perspectives and by multiple disciplines. Economists, sociologists, and psychologists, in particular, have contributed to the growing literature on reward system. Reward systems, like compensation system, have a wide-ranging impact on organizations, and their impact is greatly affected by their design and by the organizational context in which they operate.
Reward system influences the attraction and retention of employees. These obviously occur because high reward levels lead to high satisfaction, which, in turn, leads to lower turnover and create more job applicants. The best performers of an organization are generally prone to leave the organization for better prospects and rewards.
Aims of Employee Rewards
The aims of employee rewards in India vary widely from one organization to the other. The presence of business priorities is the main reason for the variation.
Keeping in view the organizational requirements, the overall aims of employee rewards are as follows:
- Contributing to added value
- Contributing to competitive advantage
- Managing compensation and reward
- Integrating individual employees’ aims with the compensation and reward systems in the organization
- Optimizing employee costs.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : HR Final Year Project
Delivery Time : Within 2 hours.
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