The Reward Model of Success - Case Study Example

The study concludes that a company must consider the changing business environment while designing the reward strategy. Extrinsic rewards are very important but only up to a certain extent. People today seek challenges and hence individual needs and lifestyles have to be considered when rewarding. IBM very efficiently manages its reward strategy and takes its changing relationship into account. They recognize top performers and reward them suitably. However, in teams, they do not give importance to individuals.

It is the team that is rewarded and this motivates every member of the team irrespective of their contribution. The reward strategy has to be in alignment with the overall corporate strategy, which can enhance performance. Employee involvement is essential to keep their interest sustained in the job because this alone can enhance productivity. The reward strategy has to be in alignment with the overall corporate strategy, which can enhance performance. Employee involvement is essential to keep their interest sustained in the job because this alone can enhance productivity.

Thus, a balance of extrinsic and intrinsic rewards is the success model of the reward strategy. The reward strategy would depend on the organization and its overall strategy. In today’s competitive business environment rewards have become a mechanism to influence and encourage workers to enhance productivity and maximize returns. The rewards were initially instituted to attract, retain and motivate the staff. Earlier salary attracted employees to an organization, benefits helped to retain talent and bonus and incentive schemes were meant to motivate them.

It was also believed over a decade ago that if the rewards and recognition process is informed to the employees, it provides a clear statement to all concerned of the organizational values and the commitment to employee involvement.