Introduction
One of the main activities of the human resource department is to take care employees. Employees need to be kept motivated to work at all times. The way to motivate them is to reward. Rewards can be either financial or free (for the business).
It is important for the HRM department to understand this as a mixture of different methods should be made in use and in practice. This will allow them to reward them for maximum results and gain the most possible. Lastly, once a suitable reward system has been put in place then they need to understand how to check if their rewards are achieving what they want – hardworking employees. Sometimes employees will fall easy so managers need to know different ways they can monitor so they can understand what their reward system is producing.
LO3 – Understand how to reward employees
3.1 – Motivational theories There are motivational theories out there that consider many approaches. A classic theory states that motivation is related to need. It classifies different types of needs into groups; then puts them in a pyramid structure. In terms of reward this means that people will have to be rewarded with whatever satisfies their needs. Many times this can refer to giving more importance or authority to employees; allowing them to feel empowered, important and wanted. These are examples of cheap rewards. Herzberg also looked at factors. He concluded that there are basic needs which every employee needs them there are motivational factors. These are not rewards but rather motivations for example recognition of effort or achievements. They are not financial rewards, so they are very preferable for businesses to choose. If employees receive these rewards then they will not look so much into financial rewards. Article “Theories X and Y” presents two theories, X and Y which denote how there are lazy and hardworking