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Is Pay Effective Organizational Reward ?

Pay can be an effective organizational reward system when implemented properly. There are different types of reward systems such as seniority-based, job status based, competency based, and performance based rewards. Employees prefer flexible benefit plans that provide both benefits satisfaction and overall job satisfaction. However, large pay differences between employees can create feelings of injustice, which may cause employees to decrease performance or leave their jobs. For a reward system to be effective, it should reward good performance, offer equitable pay compared to other companies, and provide raises and incentives that employees value.

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Aditya Kulkarni
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97 views12 pages

Is Pay Effective Organizational Reward ?

Pay can be an effective organizational reward system when implemented properly. There are different types of reward systems such as seniority-based, job status based, competency based, and performance based rewards. Employees prefer flexible benefit plans that provide both benefits satisfaction and overall job satisfaction. However, large pay differences between employees can create feelings of injustice, which may cause employees to decrease performance or leave their jobs. For a reward system to be effective, it should reward good performance, offer equitable pay compared to other companies, and provide raises and incentives that employees value.

Uploaded by

Aditya Kulkarni
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Is Pay Effective

Organizational Reward ?

by Pradip Kharade
Question

 Is pay effective organizational


reward?
Does fact CEO makes 20 times as
much
as the lowest paid members, have
any
effect on value pay as detriment of
organizational performance?
Reward System
 Organizations established reward
systems to compensate their
employees for good work done.
Types of Reward
System
 Membership or Seniority-based
reward
 Job status based reward
 Competency reward
 Performance based reward
Pay for Performance
 significant & multidimensional factor
in job satisfaction.
 Employees prefer Flexible benefit
plan which helps in both benefits
satisfaction & over all job
satisfaction.
Five Dimensions of Performance

 Efficiency
 Effectiveness
 Economy
 Compliance
 Service Quality
Key Factors in Organizational
Reward System
Reward
Norms
•Profit & Equity
•Equality
•Need
Types of Desired
rewards outcomes
•Financial •Motivate
•Social •Develop
•Psychic •Satisfy
Distribution
criteria
•Results
•Behavior
 Money is instrumental in providing
upper level need satisfaction.
 When pay serves for good
performance, it acts as a
symbolic cue for achievement.
 Pay for performance is something
extra, beyond basic wages &
salaries.
Effect on organizational
performance
 Large pay difference create feeling of
injustice.
 If employee sense an inequity
between pay ,they either leave the
job or decrease their performance.
Three Golden Rules of Reward
System
 Reward good performance.
 Offer pay that is equitable with
others within & outside the company.
 Offer pay in form in which raises are
achievable & incentives are value
pay.
Thank You
Thank
You

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