Reward System Design Essay

Pages: 6 (1679 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Careers

This is where inputs and rewards are closely studied. Employees would want to make sure that their input, if it is equal, must follow equal rewards. Adams (1965) explained that equity theory studies the ingrained mental process that allows a person to see how are efforts being rewarded and whether or not same efforts are being rewarded with similar returns. Equity theory further states that if people experience inequity, they will change their behavior in order to attain the feeling of equity or remove the tension that arises from the feeling of inequity. If they feel that their ratios are lower when compared to those of their colleagues in the same position, they will start behaving in a negative fashion to bring their ratios at par with their efforts. Some will start coming late to work, or decrease their inputs or not meet deadlines etc.

What makes the impact of the measurement and paying for performance systems more strong than ever in today's cutthroat market milieu, is the realization of the significance of the employee participation. On the same account, this emerging system is largely reliant on the "intelligence, common sense, creativity, and personal values of participants" (Nourayi & Daroca, 1996, p.206 (12)). Moreover, "the decentralized nature of operations in the new system requires internal controls that augment the integrity of the organization. A sound incentive arrangement, based on a relevant, meaningful, consistent, and reliable measuring system, is essential for a successful operation" (Nourayi & Daroca, 1996, p.206 (12))

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For this reason, we shall make it immensely important to keep the reward system completely transparent and tie it to performance so everyone would understand why an employee was promoted or given raise.


Risher, H. (July-August 1999). Merit Pay Can Be a Hard Sell. Public Management. Volume: 81. Issue: 7.

Taylor, C. (2002). Focus on Talent; Zoom In: Transferring Part of the Responsibility for Talent Retention from HR to Operations, to Leaders, Is a Cultural Shift. It's Likely That HR Will Gladly Share Ownership. Here's How Sprint Did It, T&D, Vol.56, Issue.12.

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Nourayi, Mahmoud M.; Daroca, Frank P., Performance evaluation and measurement… [END OF PREVIEW] . . . READ MORE

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How to Cite "Reward System Design" Essay in a Bibliography:

APA Style

Reward System Design.  (2011, February 16).  Retrieved March 30, 2020, from

MLA Format

"Reward System Design."  16 February 2011.  Web.  30 March 2020. <>.

Chicago Style

"Reward System Design."  February 16, 2011.  Accessed March 30, 2020.