Motivation: Reward System and the Role of Compensation :: Papers Management Business Essays

need Reward System and the Role of Compensation The design and management of observe systems present the general manager with one of the most difficult HRM tasks. This HRM policy argona contains the greatest contradictions between the promise of theory and the reality of implementation. Consequently, organizations sometimes go through cycles of innovation and hope as reward systems are developed, followed by disillusionment as these reward systems fail to deliver. Rewards and employee happiness Gaining an employees satisfaction with the rewards given is not a simple matter. Rather, it is a function of several(prenominal) factors that organizations must learn to manage 1. The individuals satisfaction with rewards is, in part, related to what is expect and how much is received. Feelings of satisfaction or dissatisfaction arise when individuals compare their input - subcontract skills, education, effort, and performance - to output - the mix of extri nsic and intrinsic rewards they receive. 2. Employee satisfaction is too affected by comparisons with other people in similar jobs and organizations. In effect, employees compare their take input/output ratio with that of others. People metamorphose considerably in how they beseech various inputs in that comparison. They tend to weigh their strong points more heavily, such as certain skills or a recent incident of effective performance. Individuals also tend to overrate their deliver performance compared with the rating they receive from their supervisors. The problem of unrealistic self-rating exists partly because supervisors in most organizations do not communicate a candid military rank of their subordinates performance to them. Such candid communication to subordinates, unless done skillfully, seriously risks change their self-esteem. The bigger dilemma, however, is that failure by managers to communicate a candid approximation of performance makes it difficult for employees to develop a realistic view of their own performance, thus increasing the possibility of dissatisfaction with the wear they are receiving. 3. Employees often perceive the rewards of others their misperception can cause the employees to become dissatisfied. Evidence shows that individuals tend to overestimate the pay of fellow workers