Human Resources - Pay Plans Essay Example | Topics and Well Written Essays - 750 words

Human Resources - Pay Plans - Essay ExampleHence, repay system in organization outhouse be defined as The degree to which reward allocations (i.e., salary increase, promotions) atomic number 18 based on employee performance criteria in contrast to seniority, favoritism and so on. However, reward systems are more than bonus and stock options. As Steve Jobs says The journey is reward often rewards include both of these incentives, they can also include other perception such as reassignment, non-monetary like vacations.Abraham Maslows theory of needs hierarchy explains the needs of human beings into five hierarchical categories namely physiological, safety, social, esteem, and need for self-actualisation. On the contrary, professional Vrooms expectancy theory explains why employees act the way they do, in light of their aspirations and their expectation of reaching those goals. These two theories are renowned frameworks that are used to create effective reward systems in organisatio ns.Intrinsic rewards are intangible, i.e., feeling of accomplishment and a sense of achievement. These rewards are those that produce non-quantifiable, personal satisfaction and a feeling that the work of employee is appreciated. On the other hand, extrinsic rewards are tangible outcome such as monetary, promotion, bonuses and sales prizes. Such employees are persuasion to be motivated to work hard to produce quality results when extrinsic rewards are offered.In research paper of Management implication of the interaction betwixt intrinsic motivation and extrinsic rewards by David Beswick of University of Melbourne, when employee is intrinsically motivated, they are more aware of wide range of phenomena while giving more attention to complexities, inconsistencies and unheralded possibilities. Such employees need time and independence to make choices, to collect and process information, and to get applauded for well