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Disadvantages Of Reward System

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4.4. Reward System: “Reward system is an important tool that management can use to channel the employee motivation in desired ways. In other words, reward systems seek to attract the people to join the organisation to keep them coming to work, and motivate them to perform to high levels”. [ct. Pratheepkanth 2011, pp.85]. As per Brickley, the reward system must encourage the employees to stick to the organisation for longer periods as well as increase the motivation and commitment to the company therefore lead to the increase in productivity and profit maximising. [ct. Brickley 2002, pp.172].

On the contrary, Holmes stated that, there are many negative significances lead by reward system if not used properly. Sometimes, …show more content…

[ct. Perkins & White 2011, pp.4]. The extrinsic rewards can be categorised into two types namely, financial and non-financial rewards.

The financial rewards are directly boosts the financial well-being of the employee like in the form of salaries, wages, bonuses and these are tangible, touchable, real items which can be used for any purpose. [ct. Jackson 1996, pp.202]. On the other hand, non-financial rewards do not increase the financial pay off to the employee: “Instead of making the employee’s life better off the job [like financial rewards do], non-financial rewards emphasize making life of the job more attractive”. [ct. De Cenzo & Robbins 1994, pp.413]. These types of rewards are motivational and includes things such as better work environment, modern equipment, excursions and parking spaces. “One way to provide non-financial motivation is to provide an opportunity for job rotation. This is a great training tool so that the employee can have a better understanding of all that jobs that are done in the organisation”. [ct. Burton 2012, …show more content…

[ct. Aroosa Khan, Latif & Jalal 2014,

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