Advantages And Disadvantages Of Rewards System Management

 

Every company has a system where they reward the employees for their contribution towards the company. This system is known as the rewards management system. It is specially designed to make the employee feel that they are important to the company and their contribution has helped the company grow and reach the position it is in today. This system makes the employee feel that they are a part of the organization and their loyalty towards the organization drives the company to the next level. But not to mention this rewarding system has its own advantages and disadvantages.

In this article we are going to throw some light on the advantages and disadvantages of rewards system management. Students who study human resource management are often asked to differentiate between the two in their coursework. To help them identify the differences in a better way SourceEssay has stepped forward with a team of assignment writers who offer HRM assignment help to students.

Advantages Of A Rewards Management System

·       Employees Have A Healthy Competition

Humans are born with a will to win. They are bound to compete with one another even if they don’t have a need to compete. The desire to win is so high that people at every stage of their lives look for ways that will help them reach their goals faster. The rewards management system only sees to it that the completion between their competitors is healthy. They set fare rules that are followed by the employees working in a organization so that the deserving candidate wins the race. Therefore we can say that rewards management system ensures that the competition remains healthy.

Well- Defined Goals

The goals that are set are well defined to the employees using the rewards management systems. This means that management ensures employees have a clear picture of what the company expects out of them. This further helps them reach their goals at a faster pace compared to usual pace. Otherwise hankering with your job role might be a sheer waste of time and energy.

·         Rewards  Management System Helps Retain Employees

The most important part is that the rewards management system motivates employees to stick to a particular organization. Life is never smooth sailing especially when running an organization. Every individual working in the organization has their tough times when they feel they are not good enough for their job role. The best way to motivate them is through rewards management system. The biggest advantage of this system is that it acts as a motivation for the employees and helps them stick to their jobs no matter what. Thus we can say that this system is specially designed to retain employees that prove to be beneficial for the organization.

Disadvantages Of A Rewards Management System

·       Rewards Management System Is Not Effective Universally

Even though rewards management system is used in almost all organizations it doesn’t work well for all types of jobs. This kind of system works best for assembly line production. For example if there is a factory where a group of workers are in a particular unit producing a product then based on the quality of work and their performance the rewarding system is used.  But if it’s a creative place where every second Day the nature of work changes then in those cases rewards management system is not very effective.  Therefore we can say that even if this system is practiced universally world wide it has its own limitations,  

·        Resentment In Employees

Another common problem that organizations face if the rewards management system is not followed in a fare way is resentment in employees. This might affect the unity of employees. Employees might end up suppressing grudges against the management or their fellow employees which in turn affects their work relations with their peers and can also deteriorate the quality of their work. If the management does not take note of it can further lead to more and more misunderstandings between them owing to chaos, conflict and confusion. It may also vitiate the work environment. To understand the repercussions of rewards management system in better way students can now avail plagiarism free assignment help from experts from SourceEssay essay help online.

 

·         May Result In Manipulation

Unreasonable demands from organizations can result in manipulation. For example if the organization judges an employee’s performance based on the sales they make and stress on it then employees can land up cutting profit margins to reach their targets. Therefore it can be said that if the rewards management system is not structured on goals that are achievable it might result in the breakdown of the moral value system of the organization. People can land up going to any extent to achieve their goals which in turn is not at all good for the morale fabric of the organization.

 

To cut it short we can say that the rewards management system has the capacity to degrade an organization and also upgrade the work standard of the employees of an organization in the following ways.

·         It motivates an employee to work efficiently.

·         It increases productivity of an organization whether it is related to products or services.

·         It induces a healthy completion among the employees of an organization.

·         Makes the employees feel that they are a part of the organization.

·         It reassures the employee that they have a future in the organization if they reach their targets.

·   This system builds an employee-centric organization where the efforts of the employees will be recognized and appreciated.

·    And, most importantly this system brings out the best in employees helping them realize their own worth and build a sustainable career.

Final Takeaway

Therefore we can say that even though rewards management system has its own limitations it is being practiced in several organizations with the objective to derive maximum profits out of employees. If it is practiced efficiently in a fare way it helps develop a healthy environment in an organization where the employees feel they are a part of the organization and do their best to ensure the company runs under profit. Students who are working on assignments on rewards management system can seek online assignment help from a team of certified assignment writers. We help you understand both the advantages and disadvantages of rewards management system so that students have a clear idea about what the limitations are and why this system is still being practiced in organizations in spite of having limitations. It is important students understand the basic difference between the two so that they can write quality research papers on rewards management system explaining its effects on an organization.

We also make sure students don’t need to go through the pain of reworks by sending the assignments to management experts who proofread the assignments for flaws and make sure the assignments do not contain any factual errors or grammatical mistakes. If you need any help in writing assignments in human resource management contact us today for immediate assistance. Hire your personal  essay writer today!