Is Pay Effective

Organizational Reward ?

by Pradip Kharade
 Question

 Is pay effective organizational

reward?
Does fact CEO makes 20 times as
much
as the lowest paid members, have
any
effect on value pay as detriment of
organizational performance?
 Reward System
 Organizations established reward
systems to compensate their
employees for good work done.
 Types of Reward
System
 Membership or Seniority-based
reward
 Job status based reward
 Competency reward
 Performance based reward
 Pay for Performance
 significant & multidimensional factor
in job satisfaction.
 Employees prefer Flexible benefit
plan which helps in both benefits
satisfaction & over all job
satisfaction.
 Five Dimensions of Performance

 Efficiency
 Effectiveness
 Economy
 Compliance
 Service Quality
 Key Factors in Organizational
Reward System
Reward
Norms
•Profit & Equity
•Equality
•Need
Types of Desired
rewards outcomes
•Financial •Motivate
•Social •Develop
•Psychic •Satisfy
Distribution
criteria
•Results
•Behavior
 Money is instrumental in providing
upper level need satisfaction.
 When pay serves for good
performance, it acts as a
symbolic cue for achievement.
 Pay for performance is something
extra, beyond basic wages &
salaries.
 Effect on organizational
performance
 Large pay difference create feeling of
injustice.
 If employee sense an inequity
between pay ,they either leave the
job or decrease their performance.
Three Golden Rules of Reward
System
 Reward good performance.
 Offer pay that is equitable with
others within & outside the company.
 Offer pay in form in which raises are
achievable & incentives are value
pay.
Thank You
 Thank
You