Reward and recognition

Rewards are generally considered to be something given for quality work, such as money or other tangible things of financial value, while recognition is and act of acknowledgement that is directed at an individual’s self-esteem and social needs (Richardson, 1997; Quek & Sha’ri, 2003). Reward and recognition should be given according to the different situation encountered and should probably be ranked – the higher achievement, the high the reward. Besterfield (1995) said reward and recognition can be in the form of bonus, salary increase, promotion or the simply a pat on the back.

Generally, almost parties agreed that recognition of employees’ achievement is one of the most important factors to motivate employees. Employees who perform exceptionally well expect that their contribution will be recognized (Islam & Zaki, 2004). Darling et. al (1997) wrote that reward and recognition system enhance positive environment at the work place and keeps worker focused on their job duties, while Urichuk (1999) stated that lack of reward and recognition is cited as one of the main reason behind employee turnover. Reward and recognition programs are important in order to prevent the brain drain of the best or qualified employees from the company.
Islam & Zaki (2004) stated that Nelson (1994) had lists the various types of rewards that the organization can offer to its employees.
- Write a letter to the employee’s family telling them about the excellent job the employee is doing
- Arrange for a senior level manager to have lunch with the employees
- Have the CEO of the organization call the employee personally (or stop by in person) to say, “Thanks for a job well done”
- Find out what the employee’s hobby is and publicly award him or her gift relating to that hobby
- Designate the best parking space in the lot
- Create a”Wall of Fame” to honour outstanding performance

London and Higgot (1997) mentioned that in company, awards are given to various categories of employee that include:
- A monetary component, consisting of either a gateway weekend package at a prestigious hotel or a money order
- A framed certificate from the company and an accompanying certificate of endorsement from the Western Australian office of the Australian Quality Council.
- An Individual and Group photograph that publish in company newsletter as well as place on a notice board.


Reference

1. Bestfield, D.H. (1995). Total Quality Management. Prentice Hall, New Jersey
2. Darling, K., Arm, J., and Gatlin, R. (1997). “How to effectively reward
employees”. Industrial Management, July/August, pp 1-4.
3. Dessler, G. (2008). 11th Edition. Human Resource Management. Pearson Prentice
Hall, New Jersey, USA.
4. Islam, R & Zaki A.I (2004). “Rangking of Employees’ Reward and Recognition
Approaches: A Malaysian Perspective”. Journal of International Business and
Entrepreneurship Development. Vol. 2. No. 2 (Special Issue), August, pp. 113-124.
5. Quek E.E & Sha'ri M.Y. (2003). A survey of TQM practices in the Malaysian
electrical and electronic Industry. Total Quality Management, Vol 14, No. 1.
pp. 63-77
6. Richardson, T. (1997). Total Quality Management, Delmer Publishing, New Jersey.
7. Urichuk, B (1999). “Employee recognition and praise”, The Canadian Manager, Vol.
24 No 2, pp 27-29.

This is a part of the paper prepared for Operation Management course.