Answer to Question #216224 in Management for Prabhdeep

Question

SUBJECT : KNOWLEDGE MANAGEMENT 

How reward system exchanges the individual and organizational performance in terms of employees, loyalty and workforce morale?

Answer 1

The reward systems and performance may have a positive correlation with performance. Employees feel that they're appreciated for their efforts when they're paid for performance. According to a study by SHRM, the significance of pay has an impact on the motivation of employees. If there was no reward for the effort employees put in, the productivity is going to remain stagnant. However, employees tend to do better when they know that the extra efforts give them incentives. This also gives them a sense of belonging. Therefore, reward and performance do have a positive correlation. Managers must strive to do their best to make employees feel that they belong to the organization and also appreciate all their efforts.