Professional Documents
Culture Documents
Rewarding Performance
Rewarding Performance
Rewarding Performance
2020 - 2022
A PROJECT REPORT ON
“REWARDING PERFORMANCE”
Section: I
Submitted by: Group No. 10
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ACKNOWLEDGEMENT
We would like to express our deepest appreciation to all those who provided us the possibility
to complete this report. A special gratitude we give to our faculty member of Human Resource
Management and our project guide, Associate Professor Dr. Nayeem Mohd, whose
We are using this opportunity to express our gratitude to everyone who supported us throughout
the course of this HRM. We are thankful for their aspiring guidance, invaluable constructive
criticism and friendly advice during this project work. We would once again like to express our
warmth thanks to Associate Professor Dr. Nayeem Mohd for the opportunity given to us here
at IBS HYDERABAD.
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INDEX
1. Abstract 04
2. Introduction 05
3. Literature review 07
7. Conclusion 24
8. References 25
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ABSTRACT
Reward systems exist so as to motivate employees to figure towards achieving strategic goals
which are set by entities. Reward management isn’t only concerned with pay and employee
Rewards frameworks may contain of a few parts, including monetary and nonfinancial prizes,
in fixed and variable sums. Reinforcement, expectancy, and equity principles are talked about
to explain why reward systems have motivating properties. The influence of reward systems
on motivation isn’t straightforward, because the psychological meaning of pay has got to be
Each system may have unintended consequences due to the psychological interpretation of the
rewards. In the world context, it is sensible to accept that social contrasts influence the
interpretation and importance of remuneration frameworks, as the qualities that influence their
significance may vary between societies. The correct types of recognition and compensations
at the opportune time can have unrivaled beneficial outcomes regarding increased employee,
engaged, situated, and put resources into the organization objectives and goals.
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INTRODUCTION
Every project manager now-a-days uses a lot of tool and techniques to execute the work within
the timeframe or within the estimated cost with the desired quality. The main thing is to
complete the work on time. And it is possible only through true, motivated, successful
manpower. They are the resources who are working on the projects. Do you think it is always
possible to get the motivated personnel? No, not at all. It is the project manager’s responsibility
and accountability to keep the project team fully motivated towards project objectives. How to
do it? Introduce some reward and recognition system for each performer. Introduce some
reward and recognition system which is highly achievable. It should not be like no one can get
it. An integral part of any organization today is its rewards and recognition system.
Remember that whenever you are going to introduce any reward and recognition system in
your project, it should be like everyone will get something out of it. It should not be like the
top three performers will get some reward and recognition and rest will not. It should be like
everyone will get this reward based on their performance in the projects. One more thing need
to be remembered for the project manager is the incremental cost for the reward and recognition
system should not exceed the project cost and it should be added while estimating the cost. Be
sure that you are getting more work (more revenue) from the project team who are eligible for
reward and recognition. The incremental cost for reward and recognition should be nearly
As per your organization’s Human Resource policy it can be in the form of incentives, bonuses,
separate cubicle places, separate parking places, medical facilities and other perks and
perquisites. And it can be weekly, fortnightly, monthly, bi-monthly, quarterly, and annually. It
depends really on the nature of the projects and human resources policies in your working
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organization.
The main objective of introducing rewards and recognition system is to ensure that the
employee feels appreciated and that his or her work has not gone unnoticed. It also serves as a
great way of pushing people to do better and better over project life cycle. One important point
is that each and every project team members should be aware of this reward and recognition
system so that they can religiously try for achieving the same. In this way, they can be more
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LITERATURE REVIEW
This section reviews literature related to the study. These include: Challenges and issues in
general rewards and recognition schemes, types of rewards and recognition schemes and
Rewards and recognition are used either to reward an employee for eliciting desired behavior
or recognize an employee for exemplary results. Subsequently, the purpose of many rewards
and recognition programs are multi- layered but motivation of employees to increase
performance is the key objective in reaching corporate goals. This is because motivated
employees perform. So, what is motivation? Motivation is a general term for factors that make
one’s intent on a particular behavior. He provides the factors as needs, drives, motives,
incentives, urges and goals. He insists that motivation satisfaction depends solely on the
demands of the situation. Staff individual performance is shaped by the nature of the rewards,
attitude of the staff and knowledge of reward schemes. Various studies have explored the
concept of staff reward programs and the effect they have on staff motivation and performance.
Attention has been given to how these schemes contribute to overall realization of
organizational goals.
Every organization needs a reward and recognition system which exhaustively addresses four
main areas. They are compensation, benefits, recognition and appreciation; the entrepreneur
(2003). The system should also aim to reward two types of employee’s activities: performance
and behavior. There are two kinds of rewards: Extrinsic and Intrinsic Rewards. Extrinsic
rewards are actually tangible rewards presented to the employees by the management. They
could be in various forms like pay rises, promotion, bonuses and respective benefits. The
rewards are termed as extrinsic because they external to the work itself, this means that other
people namely the management has the ability to control the size and whether or not they are
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granted. These kinds of rewards had played a dominant role in earlier eras whereby the job
employees were involved in was routine and bureaucratic. This involved complying with rules
and regulations. The work at this era offered employees with few intrinsic rewards and
therefore there were the only available motivational tools. The extrinsic rewards bring about
outcomes. Intrinsic rewards come from verbal rewards such as positive feedback and praise
which lead to job satisfaction. Intrinsically motivated employees participate eagerly in their
jobs for internal reasons. This is from pure enjoyment and satisfaction. Behaviors brought about
by intrinsic motivation can be better task – relevant focus, less distraction, less stress when
Employee compensation includes all forms of pay or reward going to employees arising from
their employment. Nonetheless, some employee benefits are mandated by organizational laws
throughout the world. This includes such items like minimum wage, over time, leave under
medical leave act, Unemployment, workers compensation and disability. There are types of
employee benefits provided by the company but the employer is not required to offer them and
likewise the employee is not entitled to receive them. They are offered at the discretion of the
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METHODOLOGY: DATA FROM REFERENCE STUDIES
TYPES OF REWARDS
• Extrinsic rewards:
Extrinsic rewards are tangible in nature and are normally under the control of the
organization.
• Intrinsic rewards:
Intrinsic rewards are intangible in nature and are internal to the individual.
• Financial rewards:
Financial rewards are the rewards that employees receive in monetary terms. E.g.,
Bonus.
• Non-financial rewards:
Non- financial rewards are intangible and are paid in kind. It can be measured in terms
of their value to the employee. E.g., free gifts, paid family vacation.
Another form of rewarding employees is incentives. Incentives are the rewards to an employee, over
his wage or salary, in recognition of his performance and contribution to the organization.
The incentives are broadly classified into individual, group/team and organizational.
• Individual incentives:
Individual incentives are those incentives which is paid to an individual. For e.g., bonus,
sales compensation etc. There are different types, which is discussed below;
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a) Piece-rate system- The piece rate system is based on the output produced by the
employee.
monetary or a non-monetary.
performance standards over a period of time. E.g., Best performer of the year.
• Group incentives:
Group incentives are those incentives which is paid to a group/team. It could be either
group output.
d) Task bonus system- In this system, the pre-determined task assigned to each
group member has to be achieved in order to claim a bonus above his pay.
e) Progressive bonus- The type of incentive payment is done once the output
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• Organizational incentive:
during a year. The organizational results are based on the efforts and corporation of all
organization.
b) Employee stock plans: In this; employees are given a part of ownership. This
type of incentive measure really benefits and motivates the employee to work
pre-determined prices.
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TECHNOLOGY IN REWARDS AND RECOGNITION
Employees of today want fast and immediate recognition when it comes to getting recognition
in the workplace.
For organizations with a broad employee base, this poses an issue where it is less feasible for
the leader to go up to each employee and compliment them on their everyday accomplishments.
Constructive use of technology has made it easier to reward and appreciate their workers in a
simpler, quicker and more timely way, making it smoother to run the whole process.
That's where it comes into the picture to have a rewards and recognition program embedded
Here's how the act of remembering the employees is made simpler by providing a dedicated
R&R platform:
Instant Recognition:
Recognition deferred is refused recognition. The modern atmosphere in the workplace is fast,
can actually be appreciated for the high quality of their work within moments of completing it,
instead of getting a note left on their desk a month after completing a project saying, "good
job."
Data-Driven Insights:
An R&R platform helps you to get insights into how recognition invariably affects the output
The correct information allows you to recognize the most important contributors in your teams,
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making it easy for you to remember them.
It will also help you to consider the areas in which it works in particular and the areas in which
Furthermore, data-driven insights can help you find gaps in the recognition pattern of your
company.
Integrations:
The ability to seamlessly combine modern rewards and recognition schemes, such as Vantage
Rewards, with team sharing platforms such as Slack, Microsoft Teams, etc., has made it
It can be as easy to admire a team member when collaborating on a remote project as doing it
in a collaborative app. It guarantees that not only is peer recognition promoted but also followed
by the workforce.
Similarly, make sure that the rewards and acknowledgement platform selected is easily
Today's employees don't just rely on their computers to stay connected. The humble laptops
and desktops have been slowly taken over by mobiles, tablets and Kindles.
The key driver for the shift alluded to above is the need for accessibility. Likewise, the success
of a rewards and recognition program depends largely on whether it is usable for different
channels (i.e. smartphone apps) and multiple devices (Android, iOS, etc.).
Service Yearbook:
An unbelievable motivator for everyone, including the staff, is peer recognition. In order to
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promote and encourage peer-to-peer recognition in your company, a tiny but handy feature
called the Service Yearbook can prove to be the perfect recognition concept.
So, what is the Yearbook for Operation exactly? Think of job anniversaries, yet a version that
The Service Yearbook is a feature of Vantage Incentives that allows peers to gather and
exchange memories in a customized online yearbook format before someone's job anniversary.
This "secret gift" is revealed only during the anniversary of the work itself, where the
participant can see the importance of the role they have performed over the years of service.
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RESULTS AND DISCUSSIONS
Company Culture:
Frequent and timely recognition profoundly impacts the culture of the company. A company’s
culture is the combination of a company’s vision, goals, and ideologies for achieving the
greater good. An appreciation-based work culture builds trust and respect among the members
of the workforce. Employees get a means to learn and praise their peers’ strengths and unique
qualities.
Competitive Edge:
culture of recognition in a structured and meaningful manner assures the employees that their
hard work and efforts will not go unnoticed. Employees try to bring their A-Game to work, and
it is always beneficial for the company. It helps the company achieve its goals faster and aids
People don’t leave jobs; they leave managers. A big part of employee experience is dependent
on the relationship that employees share with the managers. Rewards programs give managers
a way to connect with the employees and convey their regards. It helps both parties to bridge
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Team recognition and rewards can play a vital role in increasing morale and promoting team
building. When recognition (mostly peer-to-peer recognition) becomes a norm in the company,
it builds camaraderie and heightens team spirit. Rewards that incorporate peer-to-peer
recommendations are great for team spirit, as they encourage staff to see the positive attributes
in one another. Teams are well-placed to do this, as they work alongside each other every day.
Empowers Employees:
Recognizing employees inspires them to take autonomy and ownership in their work. They
take pride in their job and their contribution to the success of the company. By praising and
recognizing efforts, you encourage their efforts and enable them to develop.
Employee Retention:
Managing high employee turnover is the biggest challenge of human resource departments
employee satisfaction is a crucial one. Employee satisfaction is mainly dependent on how the
workforce’s treatment inside of the organization. When you make it a point to recognize your
employees duly, they get emotionally invested in the job and the company as a whole. They
Productivity:
It’s well-known that engaged staff are significantly more productive, working efficiently and
proactively in order to do a good job. If efforts are likely to be praised and rewarded, then it
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makes sense that a member of staff will work harder to receive such employee recognition.
Job satisfaction:
Recognizing an employee’s efforts demonstrates that the job they’re doing is valuable to the
business. It sends the message that their hard work is worth rewarding and therefore must be
important. This, in turn, makes the individual feel that they are making a difference.
Loyalty:
If employees are engaged with the business, they will be able to promote and sell the brand far
better than someone who does not believe in or care about it. Rewarding hard work generates
loyalty and helps your team to feel an emotional bond with your organization.
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SELECTION OF REWARDS AND RECOGNITION PLATFORM
Digitization and innovation have become a quintessential piece of overseeing individuals. The
odds are that your association is now utilizing a HRMS for different HR capacities. It is
incorporated into the current HRMS. You may likewise need to watch out in the event that you
basic beliefs. Thus, prior to picking a worker acknowledgment program, you should guarantee
that you can modify your program to accommodate your organization necessities.
2.) Cost:
One of the primer things you should deal with prior to going for a R&R program is arranging
the spending plan. The financial plan for an enormous endeavor will be in excess of a medium-
sized venture, which will be higher than a little measured undertaking. It is prudent to arrange
your costs inside prior to choosing the correct program. SHRM suggests that HR offices spend
You should pick a program that gives you opportunity towards spending designation and
allotting how you wish to utilize the financial plan. While picking an answer supplier, search
for concealed costs engaged with the program, for example, exchange charges, yearly, month
to month, or one-time cost. Furthermore, consider the expense of running an in-house R&R
program and measure on the off chance that it will be more doable to pick an outer supplier for
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3.) Outcomes:
It is essential to establish the outcomes that you expect from the R&R program, as mentioned
earlier, one of the biggest challenges of building a culture of employee recognition is a lack of
To tackle this, you must have quantifiable outcomes and expectations. And you should be able
to capture the desired results with sound analytics. Ensure that the program you choose offers
The program interface ought to be straightforward, smooth, and easy to understand. Since
everybody in the organization will utilize the program, there shouldn't be convoluted advances
included.
The program ought to be fun and simple to utilize. Gamification in the R&R module, where
workers can trade prizes or appreciation, have an inside leader board, focuses assignment, and
Companies often opt for giving some form of merchandise or the other to show their
appreciation to a high performing employee. However, it seems that it might not be the best
way to do so. Every employee is different, and their taste and needs vary. Thus, the reward that
you give is likely not the one that they are looking for.
Employees want the freedom and flexibility to choose their own rewards. Thus, it might make
more sense to reward your workforce by gifting gift cards or reward points. In this scenario,
employees are free to choose and redeem the rewards they want to receive.
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7.) Ease of Integration:
Organizations regularly settle on giving some type of product or the other to show their
won't be the most ideal approach to do as such. Each representative is unique, and their taste
and needs change. Consequently, the prize that you give is likely not the one that they are
searching for.
Representatives need the opportunity and adaptability to pick their own prizes. Accordingly, it
may bode well to compensate your labour force by gifting gift vouchers or prize focuses. In
this situation, workers are allowed to pick and recover the prizes they need to get.
Gone are the days when you could apply a one-size-fits-all approach in compensating your
fame for quite a few reasons. Here businesses can purchase reward focuses and disseminate
reclaim the focuses procured by them and use them to buy things or encounters or membership
of their decision. This gives workers adaptability and a feeling of opportunity. Furthermore,
for administrators, it lessens their cerebral pain in choosing what endowments to give on what
event.
In this way, you should ensure that the program you pick follows a point-based remunerating
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LIMITATIONS/CHALLENGES IN REWARDING
PERFORMANCES
Getting all managers on board is critical. Managers need to be fully trained on the
process and HR needs to monitor managers to ensure that the program is being used
disengagement.
The metrics should be measurable, and they need to tie into the strategic business plan
of the organization. “Using a strategic plan – if you have a corporate plan – many times
helps you get kind of a focus of where you want to go and gives you some ideas of what
you might want to use as far as metrics.” Rizzuti and Neelman advised. There should
also be a balance between short-term and long-term metrics – especially when it comes
to skill development.
The budget levels obviously impact how much the employer can differentiate pay based
small. This is more easily accomplished when fewer performance levels are used.
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4.) Rewards not understood by people:
The employees in general are not aware of the process that goes behind the plan, design
and delivery of the Reward Programs. The same are also not communicated
managers are also not sought in the process either. As a result, HR is not able to either
More often than not, it is the ‘perception’ around the intent and efforts of employees,
rather than the actual results or outcome delivered that drive performance measures and
the rewards associated with the same. Developing clear expectations, creating a clear
line of sight, setting achievable goals and establishing a credible measurement system
are some of the areas that such companies should focus on. Leading industry research
reveals that more than 80% of highly successful companies consistently display certain
The absence of a proper Job Evaluation System or well-designed Job Descriptions often
fail to differentiate between the real job at hand and its worth, as against loosely crafted
mapping exercise with the equivalent market jobs, resulting in ‘orange to apple’ and
worth/price linked to such jobs during the hiring of employees and their annual salary
reviews.
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7.) Rewards not linked to the labor market:
Those companies which do not track their competition or compare their salary levels
with the industry are always at a disadvantage of not paying their employees Market
level salaries, and hence losing out in talent attraction/talent retention. It is always wise
to get Market Salary Data periodically, and fresh custom surveys providing real time
data are the best options, as database study reports have their own limitations.
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CONCLUSION
Reward systems exist in order to motivate employees to work towards achieving strategic goals
which are set by entities. Reward management is not only concerned with pay and
training, development and increased job responsibility, for an incentive plan to be effective as
an employee retaining and motivating tool, it has to have characteristics such as, the incentive
plan should be linked to the thing that is hoped to be increased i.e. employee performance.
This would improve the organizational performance and contribute to the employee morale
too. The incentive plan should be communicated to the employees clearly. The reward should
be visible and understandable. There should be transparency and the employees should view
the system as being fair and rewarding performers. It should be given immediately after the
Employee suggestions and inputs should be valued and rewarded. The incentive should be
factors like the stock market performance and the industry’s performance. The incentive plan
upgrade their incentive plans as the environment changes. The incentive plan of an organization
should provide a challenge to the employees to gear up their performance levels and work
efficiently.
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REFERENCES
• http://thezeroboss.com/the-importance-of-rewarding-
performance/#:~:text=People%20respond%20positively%20to%20appreciation,benef
its%20for%20your%20overall%20business.
• https://sielearning.tafensw.edu.au/toolboxes/toolbox316/cs/cs_c15.html
• https://www.strategicpay.co.nz/Reward/Rewarding+Performance.html
• https://www.entrepreneur.com/article/75340
• https://hiring.monster.com/employer-resources/workforce-management/employee-
performance/reward-employee-performance/
• https://managementhelp.org/employeeperformance/rewarding.htm
• https://www.slideshare.net/preeti52/enhancing-and-rewarding-performance
• http://www.businessperform.com/articles/performance-
management/money_in_reward.html
• http://ceo.usc.edu/working_paper/performance_management_and_rew.html
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