Reward Systems Management

The document delves into the intricacies of reward systems management, focusing on the critical concept of equity in compensation. It outlines various factors that influence how rewards are determined, including civil status, tenure, responsibility, strategic relevance, performance, qualifications, market conditions, company success, and the cost of living.

The text emphasizes that employees expect to be compensated in a manner that reflects their contributions to the organization, which in turn incentivizes them to remain with the company and pursue career growth. It discusses the importance of establishing a base salary and utilizing job evaluation methods, such as the Hay evaluation method, to create a fair compensation structure.

Additionally, the document highlights the concept of distributive equity, which compares the performance-to-reward ratios of different employees. It illustrates how disparities in rewards can lead to feelings of injustice and conflict among staff. To address these issues, the author advocates for a procedural approach to achieving equity, ensuring that the processes for determining rewards are transparent and fair.

The text also covers the significance of non-financial rewards, which cater to employees’ psychological needs, such as job satisfaction, recognition, and opportunities for skill development. Examples of non-financial incentives include employee recognition programs, team-building activities, and educational sponsorships for employees’ children.

In conclusion, the document stresses the necessity of a symbiotic relationship between capital and labor, where employees are recognized for their contributions and rewarded justly. Achieving a balance between performance and reward, along with ensuring equal pay for equal work, is essential for fostering a motivated and committed workforce.