Reward System worksheet. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. In general, the rewards are based on meritocracy and an individual has to exhibit hard work and efficiency in their job so that they can be rewarded.
The reward systems have to consider the three different needs of the employees so that the rewards are relevant to them. The physiological needs relate to the basic need of an individual, food, and water, for instance. The psychological needs, on the other hand, involve such needs as self-esteem. They are based on the presumption that every human being has the need to feel respected. The social needs, lastly, entail the fact that human beings are asocial beings. In this case, they want to have a sense of belonging. The size of social groups they are in may not necessarily matter but they need to feel in a ‘society’. These three needs that reward systems have to consider and that they should relate to. The reward system could major on rewarding the employees with basic needs, honoring them so they feel respected, but have to make sure that the rewards do not act as a wedge separating those awarded from their peers, as the rivalry may not be healthy for the firm. Managers, therefore, have to perform a critical role of identifying the different needs of the employees as those will be what motivate them and what the reward systems should be offering to the employees.
The reward systems have a lot of impact on the employee motivation. Today, organizations are increasingly realizing that they need to establish an equitable balance between the contribution of the employee to the firm and the contribution of the firm to the employee (Reeve, 2013). Establishing this balance is what demands that employees are rewarded. The main components of the reward system, as had been mentioned above, are compensation, benefits, and recognition.