Reward Management Essay

10684 Words 43 Pages
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CHAPTER 1 INTRODUCTION 1.0 Overview
In any organization, employee's rewards usually given to attract, motivate and retain the employees to stay longer and contribute a good quality services to ensure the successful of the organization; in other words, rewards play an important role in creating, building and maintaining the commitment among employees with the purpose to ensure high standard of performances and workforce stability. According to the individual - organizational exchange theme, individuals enter the organization with special qualification and skill, desire and goals, and expect in return a work setting where they can use their skill, satisfy
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1.1 Research Problem
Over the last two decades, much research has explored issues related to effects of employee benefits or rewards at individual levels. On the whole, most studies explored the impact of employees benefits or reward on turnover intention, satisfaction, productivity, mobility, attraction, retention also motivation. Little is known about whether rewards or benefits have impact on organizational commitment, specially in hypermarket (retail industry) in Malaysia context. Meyer and Smith (2000) had found out that despite the vast literature on job atttitue, the issue of commitment still remain ill-defined and ill-conceptualized. Reseachers argue these dissappointing reseach outcomes are due to a ‘lop-sided' approach towards the study of commitment, which conceptualized as a uni-dimensional construct (Mowday et al., 1982) whereas commitment is actually found to be multidimensional construct comprising three components (Allen and Meyer, 1990). Thus, the relationship between rewards and commitment also required further attention because majority of studies have based their approach solely on the affective component of commitment, negleting the other two; continuance and normative (Dunham et al., 1994; Meyer and

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