Impact of Rewards on Organization Perfprmance

Impact of Rewards on Organization Performance

Introduction

One of the leading challenges in organizations has been implementing effective human capital strategies to enhance their productivity. Employees, technically known as human resources in modern organizations, are rightly considered as the most important assets. Most businesses now have the line in their promotional activities saying “Our employees are our most important asset”. Modern organizations need to take care of their assets and when it comes to employees then taking care means satisfying them by fulfilling their wants, both financial and non-financial. If organization fails to do so, employees will be tempted to leave the organization.

Many large companies today spend large amounts of money trying to make their employees more productive. However, investing money in the productivity of your employees is useless if the leaders do not understand how to recognize and reward those who are under them. In addition to money, most people love receiving large amounts of praise and recognition for their accomplishments. This will give them an incentive to work harder, which will benefit organization.

Rewards play an important role in a success of organization. Rewards motivate employees to do work hard. People are motivated to get intrinsic rewards. All employees are motivated by rewards. So if we want to get a success in competitive environment than we must need to achieve high performance of employees. Some people are motivated by extrinsic rewards such as increase in pay, promotions and bonus. Employees who are motivated by extrinsic rewards are less motivated. In this study subject area is HRM that focus on rewards system and organization performance in telecoms sector. Research is going to conduct in Islamabad; five years data of Pakistan Telecom Company limited is analyzed to clearly examine reward policies and its effect on organization success. If employees are...