Republic of the Philippines

Mountain Province State Polytechnic College

Bontoc, Mountain Province

HUMAN RESOURCE MANAGEMENT

Reward Management

Group Members:
Dopagan, Lhean B.
Fanusan, Felicity
Kiwang, Marjerie Mae
Lafadchan, Christallyne Mae
Lokok, Realyn
Marcos, Joella Rose
Peckley, Aiko

Instructor:
Genevieve L. Sagandoy
Reward Management
A. Definition
According to MBA Skool Team, reward management is adaptation of policies that
reward employee on consistency, fair and equitable basis in line with
organizational values. Rewards comprises of praise, challenging work, avenues
for growth & development.
According to Armstrong and Murlis (2007), reward management refers to "the
process of formulating and implementation of strategies and policies that aim to
reward people fairly, equitably and constantly in accordance with their value to
the organization. It also deals with the design, implementation and maintenance
of reward processes and practices that are geared towards the improvement of
organizational, team and individual performance".
From these two definitions, reward management can be derived as the process
of designing and implementing strategies and policies that aim to consistently,
fairly, and equitably reward employees based on their value to the organization. It
involves adapting policies to align with organizational values and includes various
forms of rewards such as praise, challenging work, and opportunities for growth
and development.

B. Types of Reward
A. Intrinsic Rewards
> are the personal satisfaction one derives from doing the job, in other words
this is the pride in one’s work, a sense of accomplishment. They are self-initiated
rewards.
B. Extrinsic Rewards
> include money, promotions, and benefits. They are external to the job and
come from outside source, mainly management. They are external to the job and
come from an outside source, mainly management.

C. Strategies in Reward Management

1.) Performance-Based Pay
> This strategy links employee compensation directly to their performance. It
can include individual performance bonuses, merit-based salary increases, or
profit sharing plans.
2.) Recognition and Appreciation
>Recognizing and appreciating employees for their achievements and
contributions is an important reward strategy. This can include verbal praise,
certificates, awards, or public recognition in team meetings.
3.) Employee Benefits
>Offering competitive employee benefits such as health insurance, retirement
plan, paid time-off and flexible work arrangements can be effective reward
strategy. This benefits contribute to employee satisfaction and work-life balance.
4.) Career Development Opportunities
>Providing opportunities for employees to grow and develop their skills and
knowledge can be a valuable reward. This can include training programs,
mentorship opportunities and career-advancement pathway.
5.) Work-Life Balance Initiatives
>Supporting work-life balance through initiatives like flexible work schedules,
remote work options, and family-friendly policies can be a rewarding strategy. It
helps employees maintain a healthy work life balance and reduce stress.nm
6.) Employee engagement activities
>Organizing team building activities, social events, and employee
engagement programs can contribute to a positive work environment and foster a
sense of belonging and camaraderie among employees.
7.) Performance Feedback and Coaching
>Regular performance feedback and coaching can be a valuable reward for
employees. It helps them understand their strength and areas for improvement,
and provides guidance for their professional development.
8.) Incentive programs
>Implementing incentive programs, such as sales commission, referral
bonuses or performance-based incentives, can motivate employees to achieve
specific goals and targets.
9.) Employee Wellness Programs
>Promoting employee wellness through initiatives like gym memberships,
wellness challenges or health screening can be a rewarding strategy. It
demonstrates the organizations commitment to employee’s well-being.
10.) Non-Financial Rewards
>Not all rewards need to be financial. Non-financial rewards such as
personalized thank you notes, flexible work hours or opportunities to work on
interesting projects can also be effective in motivating and rewarding employees.

D. Importance of Reward Management

A. Enhances productivity
- When an employer rewards an outstanding employee after a productive year or
project, it also motivates other employees to work harder to achieve the reward
or incentive. This can have a positive influence on the productivity of the
company. Efficient employees strive to attain and even surpass the goal set.
Therefore, whether the reward is monetary or non-monetary, it inspires
employees to be more productive.
B. Boost employee retention
- Satisfied, engaged employees are more likely to stick around. One survey of
HR professionals showed that 68% of them said that their recognition programs
positively impact employee retention. That’s because employees want to work for
companies that value them and show that appreciation with tangible actions.
Incorporating rewards and recognition is the kind of action that will retain more
employees, contributing to the long-term success and growth of the company.
C. Encourages teamwork
- When employers give rewards to outstanding teams of employees, they
encourage all team members to collaborate and work as a unit towards a
common set of goals. Employers expect employees to contribute, brainstorm,
and work together to achieve the team's goal. Employers want employees to
work in unity and learn from each other to achieve the team's goal and receive
the expected incentives.
D. Better work quality
- Team work’s quality may increase because its members are working toward
something else beside their base salary. This benefits everyone because you
receive work of a higher quality and team members get rewarded for their
improvement.
E. Increases employee loyalty
- Giving rewards to employees who have performed well in achieving the
company's goals can make them feel appreciated and happy. When an employer
rewards or recognizes the effort of a hardworking employee, it can inculcate a
stronger employee-employer relationship. Rewards and incentives assure the
employees of their importance to the company, and in return, can improve their
loyalty. Loyal employees usually work harder for the growth and expansion of the
organization.
F. Increase employee motivation
- Offering recognition and rewards for employee performance will boost
motivation so workers stay on track and maintain a positive attitude. These
programs encourage collaboration and give employees something to work
toward. When they receive a reward for doing something right, they’ll be more
motivated to do it again and again.
G. Makes employees feel more valued
- When you reward your employees for good work, they feel valued and more
motivated which can overall boost the productivity and success of your business.
H. Faster project completion
- If your team members are working productively and doing their job well to earn
a type of reward, it can help meet deadlines for project early.

E. 4 Principles of Reward
1. Pay: This principle involves providing financial compensation to employees for
their work. It includes salary, bonuses, and shares in the company.
Example: An employee receives a year-end bonus based on their performance.
2. Praise: This principle involves recognizing and appreciating employees for
their efforts and achievements. It includes positive feedback, commendations,
and awards.
Example: An employee receives a "Staff-of-the-Year" award for exceptional
performance.
3. Promotion: This principle involves advancing employees to higher positions
within the organization. It includes status elevation, career progression, and
secondment (temporary transfer to another position or location).
Example: An employee is promoted to a managerial position after demonstrating
leadership skills and achieving excellent results.
4. Punishment: This principle involves taking disciplinary action against
employees for misconduct or poor performance. It includes withholding pay,
demotion, or other penalties.
Example: An employee is issued a warning and has their pay withheld for
repeatedly violating company policies.

F. Steps in Reward Management Process

Evaluate the job performance of the employees: This step involves assessing the
performance of employees to determine their contributions to the organization.
Performance evaluations can be based on key performance indicators (KPIs),
goals, and objectives.
Example: A manager conducts performance reviews with each employee to
discuss their achievements and areas for improvement.
Job analysis: Job analysis involves gathering information about a job's duties,
responsibilities, and requirements. This helps in determining the appropriate
compensation and rewards for the position.
Example: HR conducts a job analysis for a new position to determine the skills
and qualifications required for the role.
Check the market rate analysis done by the employees: This step involves
conducting a market analysis to determine the competitive pay rates for similar
positions in the industry and region.
Example: HR compares the salary data from various sources to ensure that the
company's pay rates are competitive.
Pay structures: Pay structures refer to the system used to determine employee
compensation, including base pay, bonuses, and incentives. This step involves
establishing and maintaining fair and equitable pay structures within the
organization.
Example: HR develops a pay structure that includes base pay, performance
bonuses, and benefits for different job levels within the company.
Performance measurement and management: This step involves setting
performance goals and metrics for employees and monitoring their progress. It
also includes providing feedback and coaching to help employees improve their
performance.
Example: A manager meets regularly with their team to review performance
goals and provide feedback on their progress.
Identify financial and non-financial rewards: This step involves identifying the
rewards and incentives that will motivate employees to perform at their best. This
can include financial rewards such as bonuses and salary increases, as well as
non-financial rewards such as recognition and career development opportunities.
Example: HR conducts a survey to gather feedback from employees about the
types of rewards and incentives that would motivate them.

References:
Armstrong, M., & Murlis, H. (2007). Reward management: A handbook of
remuneration strategy and practice. Kogan Page Publishers.

DeCenzo, D. & Robbins, S. (2007). Fundamentals of Human Resource

Management: Ninth Edition . John Wiley & Sons, Inc

Indeed. (2022, Dec.6). What Are Reward Systems? (Including Benefits and
Examples). Retrieved from https://ca.indeed.com/career-advice/career-
development/reward-systems

Grewar, C. (2021, April 30). 20 ways good reward management will transform
your company. Perkbox. Retrieved from
https://www.perkbox.com/uk/resources/blog/10-ways-good-reward-management-
will-transform-your-company

MBA Skool (n.d.) Reward Management - Definition & Meaning | HRM Overview |
MBA Skool. MBA Skool.Retrieved from https://www.mbaskool.com/business-
concepts/human-resources-hr-terms/16624-reward-management.html

Payos, R. (2010). Human resource management ( From the Practitioner’s Point

of view). Manila, rex Book Store

Spiegel, S. (2020, Nov. 4). Top 6 Reasons to Implement a Rewards and

Recognition Program. Crewhu. Retrrieved from
https://www.crewhu.com/blog/top-6-reasons-to-implement-a-rewards-and-
recognition-program