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(CRM) Unit 5 Part 1

1) Reward management refers to all forms of financial returns, benefits, and services that employees receive as part of their employment relationship. 2) Reward management is important for organizations as it is concerned with developing and maintaining both financial and non-financial reward systems to value and motivate employees in a way that provides competitive advantage. 3) There are different types of rewards including financial compensation as well as non-financial recognition, and an effective reward management process involves creating a reward strategy aligned with organizational goals.

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Anukrati Bagherwal
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28 views

(CRM) Unit 5 Part 1

1) Reward management refers to all forms of financial returns, benefits, and services that employees receive as part of their employment relationship. 2) Reward management is important for organizations as it is concerned with developing and maintaining both financial and non-financial reward systems to value and motivate employees in a way that provides competitive advantage. 3) There are different types of rewards including financial compensation as well as non-financial recognition, and an effective reward management process involves creating a reward strategy aligned with organizational goals.

Uploaded by

Anukrati Bagherwal
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit 5

Reward Management

Introduction

“Reward refers to all forms financial returns and tangible services and benefits employees receive as part of an
employment relationship.”
Berry, J. (2000, p. 45-46) as cited in Henley Management College (2000, p. 23) advocates that reward ‘may
very well be more than just pay and benefits, but will increasingly be base on skills and knowledge and will be
innovative’. In the context of the studies Philbean and Corbridge (2002, p. 204) argues that reward
‘encompasses pay, remuneration and compensation. It represents a portfolio of managerial practices where
financial and non financial elements are flexibly directed at enabling and rewarding employees who add value in
the interests of competitive advantage’, he went further to say that reward is total remuneration concept of pay
and benefit together with non- financial recognition and motivation applied in a contemporary context.

Reward Management

Reward Management is about how people are rewarded in accordance with their value to an
organisation. It is concerned with both financial and non-financial rewards and embraces the philosophies,
strategies, policies, plans and procedures used by organisations to develop and maintain reward systems.”

This statement underlines the importance of reward management to an organisation success. According to
Beardwell and Holden ‘reward management has often been viewed as the ‘poor relation’ of human resources
management concerned with ‘systems, figures and procedures.’ Another definition states ‘Reward
Managements is one of the central pillars of human resources management. While the term ‘reward
management’ is problematic, we consider that the term best captures the current changes in management
assumptions and practice about pay.

Types of rewards
Reward management process

Reward Strategy

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