Full Project – Reward system and employee productivity

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CHAPTER ONE

INTRODUCTION

1.1    Background to the study

Employee compensation and reward is synonymous with productivity management. Productivity management is usually a fundamental function of the Human capital management department in any organization. Human capital management is primarily concerned with managing the relationship between people and work. Armstrong (1992)

It is widely believed by scholars and practicing professionals that employee productivity has implications on production capacity and service delivery. The output capacity of a firm is often assumed as its strength and one of its adaptations for survival in a competitive environment.

Reward system as an important tool that management can use to motivate employees and alter their attitudes and make them enthusiastically strive towards accomplishment of organization goals. Motivation involves influencing an employee to willingly perform extraordinarily towards accomplishment of predetermined goals. (Cole 1995). For an organization to meet its obligations to shareholders, it is imperative that the top management must develop a relationship between the organization and employees that will fulfill the continually changing needs of both parties. Employees expect their organization to provide fair pay, safe working conditions, fair treatment, recognition and reward for exceptional productivity.

 

 

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Full Project – Reward system and employee productivity