Rewards

Pay and reward systems exist in the form of pay, bonuses and benefits, financial and non-financial and designed to improve performance, increase motivation, staff retention and increase profitability. Appreciation and gratitude is widely received as reward and the opportunity for training and development for career progression.

 The transactional style of leadership is pretty straight forward but it uses rewards and punishments to motivate the team. This is a style of leadership that is similar but not as extreme as the autocratic style. The transactional styles are direct and dominant and spend a great amount of time saying what is expected from the team as a whole. The leaders monitor the work and each and everyone’s individual performance, there is also a clear chain of command.  Transactional leaders are very commonly found within businesses where people are given rewards such as bonuses, training or time off if they show a good demonstration.

Transactional leadership is built on reciprocity, the ways in which leaders and followers influence one another, and the idea that the relationship between leader and their followers develops from the exchange of some reward, such as performance rating’s, pay, recognition, or praise (Marturano, 2004). This style of leadership does not promote a close relationship amongst the boss

“Transactional leadership is a style of leadership focused on contingent rewards of followers” (McGuire & Kennerly, 2006, p.180). Goals are set, directions are given, and rewards are used to reinforce employee behaviors associated with meeting or exceeding established goals. Followers are manipulated and controlled with rewards of praise and recognition, merit raises, and promotions, which can be given or withheld according to the employee’s performance. The outcome of such behavior is enhanced role clarity, job satisfaction and improved performance (McGuire & Kennerly, 2006).

A motivated workforce can be a significant success when employees are motivated to work at a higher levels of productivity. Also this means the whole organization is more effective at reaching it’s goals. Rewards can be a positive outcome when it comes to boosting your organizations self-confidence and higher employee satisfaction. Having a reward system can always be a good outcomes because this shows how much your workers are willing to work to achieving a goal in order to receive something in return. This not only gets things done but brings out another side of your organizations as a whole.

These rewards come in the form of salary increment, bonus and recognition (Gill 2011). Employees who fail to perform well are punished (Bass 2008). Howell and Avolio (1993) study confirms that the contingent rewards leadership has a negative effect on follower’s performance (Gill 2011). Similarly, transactional leadership is based on a contingent reward and punishment system, it does not offer much in term of motivating and inspiring people (Bach and Ellis 2011).

Two different leadership styles, which were first identified in 2004 by a noted scholar named Burns, are transactional and transformational leadership (Marquis & Hutson, 2009). Transactional leadership is a more traditional style of leadership and it is where the leader sets goals, gives directions, and uses a reward system to motivate employee’s behaviors related to

Creating and implementing new and improved rewards systems at work has been a tool of success for many organizations. Corporations use these rewards to boost employee morale and to allow their employees “me time”. Throughout the course of this paper, I will determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. Next, I will explain how innovative benefits could be tied to specific jobs. Thirdly, I will critique the effectiveness of equity-based rewards systems versus those with more creative approaches. Then, I will discuss the key elements of integrating innovation into a traditional total rewards program. Finally, I will recommend a

The rewards offered can be extrinsic such as wages, incentives and bonuses, or intrinsic such as job satisfaction, an internal feeling of worth and a sense of well being on the job.

Recently published literature reveals that there are several key components of any effective reward and recognition program. Multiple authors argue that programs missing any one of these key components will, at best, fail to engage employees, and at worst alienate employees. In fact, according to Bob Nelson, the author of 1001 Ways to Reward Employees, some forms of awards can hurt organizations by promoting a culture of entitlement. Additional research reveals that programs that are impersonal or reward too few people may alienate employees. These key 14,15,16 components and case examples of their influence are detailed below:

Transactional leadership is a style that lays out clear goals and objectives. To encourage staff members to act in accordance with these goals, punishments and rewards are utilised (Business Dictionary, n.d.).

Organizations, hungry for more response options to reward their good employees, have widely adapted the emerging HRM technique of reward managementthat includes all sorts of monetary and non-monetary rewards in exchange for their performed work (University of Leicester, 2006). The value of combining base pay along with other performance related-pay and non-financial rewards spurs the recruitment and retention of good caliber employees and creates a feeling of achievement, recognition, responsibility, influence and personal growth amongst the employees (Armstrong,

Transactional and transformational leadership differ. Ingram (2016) states “Different managers employ distinctly different management styles, ranging from relatively hands-off, facilitative styles to autocratic, micromanaging styles. Managers can also employ different motivational strategies and techniques to boost employee performance or accomplish internal change. Transformational and transactional leadership are polar opposites when it comes to the underlying theories of management and motivation. Understanding the difference between transformational and transactional leadership is crucial for anyone pursuing a career in management.” (Ingram, 2016). When I was a manager, I had to make sure my store operated properly and maintain sales. Sometimes I would hold contest for my workers to motivate them, Ingram (2016) states “Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leadership can be described as "keeping the ship afloat." Transactional leaders

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to

According to Jack Zigon (1995), rewards can be defined as “something that increases the frequency of an employee action” and this in other words means that an employee must be judged by his very performance within the company in order to offer him the rewards. (Prudden, 2004)