Rewards and Performance

AHMAD FAWZAN BIN AHMAD WASHID

2015538379

OSM 701

OMM11B

LITERATURE REVIEW

Employees are the most important and is the main factor that determines the directions and success of the organization mainly in a modern and competitive environment. If the employees and the environment are managed well, the commitment could lead to beneficial effects such as increased efficiency, improve productivity and performance. Rewards is a form of benefit given by the organization to the employees for the performance shown. In fact, almost all types of employees, both private, public, small and large organizations affected by rewards.

Rewards and methods are highly founded on expectation about the factors that affecting the motivation of people to join and stay with the organization and able to work hard and effectively. Jobs are the medium that exhibits the relationship that offers organizational employees in exchange for tangible rewards (such as salary and other benefits) and intangible rewards (respects) received from the organization (Eisenberger et al. 1990). People try to find satisfaction in every aspect of their lives, including the satisfaction of their basic needs for foods, place to stay and social interaction (Iverson, 1996). The scope and achievement goals include getting a good job, preferably with a good salary and are satisfied with the work done (Luthans, 1985). Both extrinsic (e.g., promotion, pay) and intrinsic (e.g., doing meaningful job) rewards are driven the employee; There are researches that support that both types of rewards that affect the results such as satisfied in the organization, good work engagement, and willing to stay (Deci and Ryan, 1985; Steers et al., 2004; Tymon et al., 2010). Salary, promotions, bonus, are something that controlled by the organization and are not under the direct control of the employee. They are designed to control costs and with the organization’s extrinsic reward system, it can reduce or increase the rewards...