We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Impact of rewards on employee performance

The whole doc is available only for registered users

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

A majority of companies are confronting several problems linked to worker’s performance. The Rewards system has many affects on workers, which rise the degree of work performance and fulfillment. Various studies were directed in the last decades to study the influence of rewards on the workers performance. This report aims to study the link among employee’s performance and rewards, in addition to that to identify Cultural dimensions in reward perspective.


The senior management should create a positive relationship among the employees and the company that will satisfy the consistently fluctuating desires of both gathering, in order for a company to reach its commitments to society, workers and shareholders, All the companies are expecting that their workers will perform dependably to the mission assigned to them, and to respect the policies and systems that have been founded to manage the working environment. Usually the top management is expecting several things from their employees, for instance to be creative, keep on adapting new aptitudes, to be receptive to business necessities and to direct themselves.

On the other hand the workers envisage their employers will give reasonable pay protected functioning conditions, and reasonable treatment. (Beer, Spector , Lawrence, Mills, & Walton, 1984). Traditionally most recompense and distinguishment projects were obscure and regularly given in light of a supervisor’s impression of when a worker performed incredibly good.

There were generally no set guidelines by which a remarkable performance can be measured, and it could have implied anything from having a decent demeanour, helping an alternate division, or being reliably timely. In present authoritative settings this is no more the case, as associations comprehend the extraordinary increases inferred by connecting prizes and distinguishment to their business system (Flynn, 1998), in addition, to the cultural aspect can have an influence on the type and the strategy of rewards to improve the employee’s performance.in order to reach the aim of this study the author will use several references to present a literature review on the impact of rewards on employee’s performance. The literature review will first cover the meaning of the concept of rewards, then the Cultural dimensions in reward perspective and finally the performance appraisal based reward system

Literature review
Rewards: Clarifying the concept

Rewards represent any tangible profits and procurement that employee acquire as a piece of working relationship (Milkovich and Newman, 2004);while Malhotra et al.(2007) explained that “work prizes” signify the profits that employees get from their working environment and are viewed as the factors of occupation responsibility and fulfilment. Stone et al.(2010) found that financial incentives are not always welcomed by all employees and material incentives generally do not tend to satisfy the basic psychological needs and discern the individual variance. Bratton and Gold (2003) characterize “rewards” as all the recognition, financial and intangible payment gave by a company as an exchange of their commitment. Stone et al.(2010) discovered that motivating employees by money is not constantly welcomed by the workers invited and material motivation don’t have a tendency to fulfil the essential mental needs and recognize the individual change.

Terrible and Friedman (2004) identified that rewards are at present more than aged concept of tolerating a weekly pay checks, rather they get a handle on the widely inclusive worth arrange that the supervisor propose to the delegate that consolidates reward, benefits and occupations. Between the different kind of reward, financial recompense represent the most interesting and essential element (Milkovichand Newman, 2004). “financial rewards” are not only pondered as a motivator (Gardner et al., 2004), but also a technique of fortifying workers maintenance (Lum et al., 1998).

Conversely, Adams (1963) claimed that providing monetary remunerations can generate unfairness problems that may disrupt the opportunity of encouraging influence of “rewards” and provoke undesirable results. Reflecting the financial rewards matters, two sorts of equality pondered correlated distributive equity and technical equity, previous represent the level in which the workforce recognize their pay as reasonable, although the second is concerned to feel reasonableness of the assets and strategies utilized within deciding the salary . Hsee and Abelson (1991) contended that in procurement of pay workers for the most part are irritable with rapidity in terms of rate of change and the aim , in light of the fact that they search out and investigate data about their advancement. Trevor et al. (1997) invested with confirmation that “pay development” has a destructive influence on the turnover.

Cultural dimensions in reward perspective

Culture is the supreme perceptible incognisant or cognisant impression of one’s convictions, values and traditions (Schein,1985). The Cultural aspect gives a proposal to amend worker’s inclination regarding the recompenses (Chiang and Birtch, 2007). The Culture inside an organization incorporates all the parts of working in terms of experiences ,whether it identifies with companies’ morals or the impalpable responsibilities such as the conditions of working, adaptability, worker’s skills, self-guidance and the level that demonstrates worker’s interests about the business aim. workers have a tendency to stay or to quite the company by considering its culture (Kroeber and Kluckhohn, 1952).

The clarification of the duration of excursion, the capital and rank fluctuates crosswise over distinctive nations; also a differentiation impact is clear regarding intangible and tangible rewards through cultures (Schneider and Barsoux, 1997) to affirm the rewards effects upon different cultures (pennings, 1993).Hofstede’s (1948) typical model is establishing an understanding in a predictive and exact system and it may be utilized in planning and transmitting of efficient prepares of reward (Chiang, 2005). Successively once states share similar result on Hofstede’s (1984) general cultural dimension then it is expected that organization apply may be simply transferrable.

Agreeing to Inglehart and Carballo (1997) Chinese have the highest score on authority distance while the British have the highest in masculinity, even inside the Chinese sphere, and due to the association western management performs, Taiwan are the highest on development and industrialization. Chiang (2005) claimed that persons from nations that have a high score on masculinity desire the singular performance recompenses and it demonstrate a similarity of hofstede’s opinions that masculine nations have superior tendency to value material motivations than female nations.(Hofstede, 1984) but Chen(1995) discovered that cultural and financial variation has removed Chinese from collective actions since they desire fairness than parity founded rewards, however on the opposing Chiang (2005) argues that its actually unfair to upkeep the argument that feminine beliefs provide importance to physical rewards (Hofstede,1984).

In spite of the fact that the meeting point of view contends that culture weight is decreasing currently as a result of the globalization. Smith et al. (1995) establish in their exploration that despite the fact that, union is viewed as difficult , HR rules that is clear for the most part in labor arranging however nonstop dissimilarity is viewed as delicate, tools utilized within cultural delicate regions, that is, joined with prizes and inspiration (Redding, 1994).

Performance and performance appraisal based reward system

Rewards plus the performance allow the supreme worker to be granted suitably. Conferring to Lyonsand Ben Ora (2002), effective execution based prizes are those that are applied and associated with overall reward tactic and perfectly initiated.

Among a few key segment of pay for execution “stock” is figured most correlated and measurable approach to relate pay to execution.

At the point when companies structure the rewarding system altogether as per the anticipation of their employees, it occurs to individual intuition to perform well so as to attain both personal and the companies aims (Pfau and Kay, 2002).

The unique technique to improve the workers inspiration and interest is performance evaluation method particularly after the labour is straight associated with prize over specific and formal personal aims (Fay and Thompson, 2001).

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59