Rewards and Compensation Systems
Human capital is an important contributor to the worldwide wealth, and this recognizes the vital role in increasing the organization's effectiveness. One important function of the HRM is motivation of the employees, which has noticeable results in all levels of an organization. This starts from the managers who must recognize the factors that motivate their employees to improve their performance through designing and implementing effective compensation and reward systems. Motivation is a significant aspect of the HRM and organizations need motivated employees to achieve their strategic objectives (Kirstein, 2010).
Motivation is a complicated topic and not many managers know what to implement in order to motivate their employees. Some companies use the money as their main tool for employee motivation this is inclusive of performance related pay (Kovach, 1987). However, when an organization faces a financial crisis and opts to cut costs by reducing salaries, and...
[ View Full Essay]