Page 194 - E1 Integrated Workbook STUDENT 2018
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Chapter 14
Reward system
3.1 Introduction
A reward system refers to all of the monetary, non-monetary and
psychological payments that an organisation provides for its
employees in exchange for the work they perform.
Purposes of reward systems:
Assist organisation in achieving their mission and objectives.
Ensure recruitment and retention of appropriately skilled staff.
Provide a fair and consistent basis for rewarding employees.
Motivate staff to maximise performance.
Reward performance through promotion or progression.
Control salary costs.
Comply with legal requirements and ethical obligations.
Ensure employees’ attitude to risk is aligned with that of the organisation.
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