Evaluate the principles of reward and its importance to organisational culture and performance management

Evaluate the principles of reward and its importance to organisational culture and performance management

Reward principles stand out as critical drivers of organizational culture and performance management because they are fundamentally effective at motivating employees with the aim of achieving positive results. The following principles and their importance are discussed below:The following principles and their importance are discussed below:
1. Alignment with organisational mission and strategy:
Reward systems should be in sync with organisational mission and strategic goals where reward and recognition is used as a tool to change and to align employee behaviour towards organisational objectives.
2. Workforce preferences:
Rewarding strategies should take into account the ‘preferences’ of the workforce, which means skilled, unskilled, entry-level, and highly experienced employees, so that every group receives the rewards it deserves.
3. Involvement of employees:
Employees should be taken through the process of developing reward strategies, because their opinion is equally important for the best reward system that meets their needs and inspire them.
4. Consistency and transparency:
Consistency helps in the fair allocation of rewards while transparency allows employees to understand the system of the rewards, the reward-receiving criteria, and its value.
5. Performance-based rewards:
Performance-based rewards system should be created as this encourages employees to push their performance levels higher.
6. Development rewards:
Rewards shall include development opportunities as it is one of the things which help to keep employees and also give them a chance to learn.
7. Flexible rewards:
Rewards should keep up with changing times, thus the organizational management has a leverage to adjust to changing circumstances and employee tastes.
The importance of reward principles to organisational culture and performance management is that they help to:
1. Employee motivation and engagement can be raised.
2. Increase performance and overall productivity
3. Draw the best workers and keep them.
4. Build on a positive working climate.
5. Create a culture of on-going improvements.

Rewards mechanisms are critical in influencing the culture of an organization and performance management as they provide the motivation for the employees to perform and the desired performance outcomes. Through the coordination of reward systems with the mission and strategic objectives of the organisation, the employees’ preferences, their involvement in the development of the reward system, the consistency and transparency, the practice of reward based on performance, the provision of development opportunities, and the offering of flexible rewards, organisations can create a reward system that will boost employees’ motivation, improve performance and productivity, attract and retain top talent, and create a healthy working environment.

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