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Description Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that further and advance the discussion


Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that further and advance the discussion topic.

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Please provide the references you used.

Performance Management and Reward Systems
Reward systems are important in enhancing the motivation of employees. The design of the
systems is important for the organization as this follows a systematic process in the appraisal system,
ensuring that the employee gains the right feedback from the system. The reward system can be
monetary or non-monetary, depending on the organization and the goals it aims to achieve from the
employees. The consideration of the systems leads to increased satisfaction and motivation of the
employees, leading to increased performance in the long run. The consideration of the objectives of the
rewards system is important as this helps support the employees in their goals and ensures that they
align with those of the organization.
Rewards Systems
Reward systems are important in the organization and are classified as extrinsic and
intrinsic. With the extrinsic rewards, the focus is financial payments and the conditions at work that help
the employees perform in their roles. With this, the employees’ roles are considered (Aguinis, 2023). The
objectives of the rewards are important as they help support the organization’s roles, and this is done
through the alignment of the organization’s goals with the employees’ roles. The performance
management process applied is also critical as it helps in the recruitment and retention of employees, and
it ensures that the right skills of the employees are considered. The system also ensures the employees’
motivation and the assessment of the rules and regulations that the organization should consider in the
management of the employees’ roles.
Different Types of Reward Systems
The reward systems that are used by the organizations are critical as they allow for the motivation
of the employees. One of the reward systems is the use of base pay, which is the minimum wage that the
employees receive for the hours they have worked. Pay is related to performance, and this relates to the
payment based on the output of the employees (Awan et al., 2020). With this scheme, the employees
work harder to increase their wages. Individual performance scheme relates to the bonuses that the
employees receive, and this is based on employees meeting their objectives and the organization making
a profit. In this case, the goals of the organization and that of the individuals are aligned. The use of
commissions is also a critical form of reward, mainly applied to the sales staff. The commissions are
meant to enhance the motivation of the employees, and their salaries are variable. Where the sales are
higher, the commissions for the staff are higher. Non-cash rewards are also critical in enhancing
employee motivation, and they include stock options that allow employees to buy company shares
(Manzoor, Wei & Asif, 2021). The employees also receive benefits in kind, including health insurance.
This is important for the employees as they feel valued in the organization.
Importance of Alignment of Rewards System with Organizational Goals
The alignment of the rewards systems with the goals of the organization is important as it helps
focus on the motivation of the employees. The decisions made by management regarding rewards are
meant to increase the company’s health. The rewards system goals must comply with the country’s laws,
ensuring that the company averts legal issues (Manzoor, Wei & Asif, 2021). The consideration of the
strategic levels of the organization allows for the alignment of the reward system to that of the
With the performance and rewards system, the focus is to ensure the employees’ increased
motivation, as this allows for improved organizational growth. It helps in enhancing the satisfaction of the
employees and encourages their performance. Organizations consider their growth, focus on their goals,
and align this with individual employee growth. With this, there is assurance that all employees are aware
of their roles and how their performance impacts their growth and rewards.
Aguinis, H. (2023). Performance management. SAGE Publications.
Awan, S. H., Habib, N., Shoaib Akhtar, C., & Naveed, S. (2020). Effectiveness of performance
management system for employee performance through engagement. SAGE
open, 10(4),
Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic rewards and employee’s performance with the mediating
mechanism of employee’s motivation. Frontiers in psychology, 12, 563070. https:// doi:

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