Study of Reward Management as Motivational tool in Organizations


An employee reward system consists of organizations integrated policies, processes and practices for rewarding its employees in accordance with their contribution, skill and competence and their market worth. It is developed within the framework of an organization’s reward philosophy, strategies and policies, and contains arrangements in the form of processes, practices, structures and procedures which will provide and maintain appropriate types and levels of pay, benefits and other forms of reward.

Any reward system consists of financial rewards (fixed and variable pay) and employee benefits, which together comprise total remuneration. The reward system also incorporates non-financial rewards (recognition, praise, achievement responsibility and personal growth).

From the organization’s point of view, the aim of employee reward are to communicate organization’s values, performance, standards and expectations and encourage behavior that will contribute to the achievement of the organization’s objective. The basic questions to be answered when developing reward systems are What kind of rewards do employees actually get motivated to work better?” and ‘What sort of behavior do we want?’ and ‘How can reward processes promote that behavior?’ and ‘No reward initiative should be undertaken unless it has been established that it will add value, and no reward practice should be retained if it does not result in added value. From the employees’ point of view the reward system should treat them as stakeholders who have the right to be involved in the development of the reward policies that affect them, meet their expectations that they will be treated equitably, fairly, and consistently more over they have to be transparent. They should know what the reward policies of the organization are and how they are affected by them.

This research deals with the study of ‘Study of Reward Management as Motivational tool in Organizations’ and the primary data has been collected from employees working in the Information Technology industry having zero to four years of professional experience through survey method.

The objective is to find the relative strength of the monetary and non- monetary rewards being offered with respect to motivation of the employees in the various organizations and to understand the employee perspective about rewards.  And after analyzing the data collected from the respondents appropriate recommendations have been made to determine a package of monetary and non-monetary rewards to help in increasing employee motivation.

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