Impact of Effective Reward Management on Organisational Efficiency, Effectiveness, and Industrial Harmony

Abstract

This paper looks at effective reward management as a gateway to sustaining organisational efficiency, employees’ effectiveness and industrial harmony. The issue of reward, however has over the years be giving human resources department nightmare, and one of the major tools eliciting industrial action in modern organisations. Reward management is, indeed, concerned with the formulation and implementation of strategies and policies in order to reward people fairly, equitably and consistently in accordance with their values to the organisation. It deals with the development of reward strategies and the design, implementation and maintenance of reward systems which aims to meet the needs of both the organisation and its stakeholders. Human resources noted as the most valuable asset of any organisation are human and not machines, and as such are entitled to having a fair share of the organisation’s reward or benefits. Over the years, most organisations, including government institutions or agencies do not pay adequate attention to the plight of her employees in the area of remuneration and other fringe benefits, and as such causes unnecessary conflicts. This paper, however, is builds on previous theoretical and empirical studies to determine the extent to which contextual factors and effective reward management impact on organisational efficiency, employee’s effectiveness, motivation, and industrial harmony. The author concludes that sound management of reward aids proactive and sustainable organisation’s growth and development in this 21^st century organisations and beyond.