Rewarding performance systems inLebanese banks is a factor that motivates employees to participate their workefforts to improve company performance (monitory and non monitory) and create innovative(out of the box) ideas for the company .
According to Dewhurst et al.(2010) ,there are other means to reward employees that do not only focus on financial rewards.Some of these rewards include the praised that employees are able to acquirefrom their managers, the opportunity to take on important projects or tasks,and even leadership attention.Recent researches suggests that supervisorreward power would have a great influence on employeeeffectiveness,productivity, satisfaction,decreasing employees turnover etc. (Simon, 1976; Martin & Hunt, 1980; Jahangir,2006). The management should evaluate thework performance for each Employee and rewards each employee according to hiswork efforts .
There are lots of factors that influence employee performancesuch as company location , company policies ,his work experience, skills, andknowlege, salary, relationship with employer, fill the gaps by participating intrainings and workshops etc … Baron 1983 says that motivation isan important part of rewards and has an impact of behavior to achieve some goals.
There are 2types of rewards: intrinsic or extrinsic .Extrinsic rewards (tangible rewards) doesnot include any task related to the work of employees, and may be according tosalary, higher payment,benefits etc…Intrinsic rewards (intangible orpsychological rewards) such as motivation, behaviors, satisfaction, Value ofchallenges etc .
.. to achieve goals .
According to Luthans (2000), thereare two basic types of rewards, monitary and non- monitary and both can be usedto enhance employees performance behaviors . Financial rewards mean pay foremployee performance such as career advancement , performance bonuses, jobpromotions, commissions, tips and gifts etc.. Non financial rewards are nonmonetary or morally such as acknowledgement, certificate, and genuineappreciation ,advancement etc. In contrast ,every Lebanese bank hasits own rewarding scheme (which includes extrinsic and intrinsic rewards ) .Theobjectives achieved of this scheme can be summarized as follow 😮 Supportingthe goals of the organisation .
o Ensuringthat the Company is able to retain the appropriate employees with the appropriateskills.o Motivatingemployees .o To respond(comply)with legal regulations.
o Tobe ethical. o Tobe affordable and easy to administer. Financial Rewards can include(Monitory) :Financial rewards made according toeach employee performance .Money is an importantmotivator.The most common ways to use money as incentive are in the salaries,bonuses, benefits after retirement etc. . Many companies use employee stock options plans tocompensate, retain, and attract the best employees. These plans are structuredas a contractual form between a company the employee that give him the abilityto buy a specific number of the company’s shares at a stable price.
Non financial rewards can include(Non monitory) : Creating competitionsbetween the employees which is a non-monitory incentive to put more efforts at work.Non monitory rewards can also happens by providing opportunities foradvancement for employees to perform well and advance in thehierarchy .At last , a very strong type ofnon-financial reward can be appliedby employees empowerment, which includesstimulating and involving an employee in certain important company decisions.For example, if the management decides to buy a new system for the company, theemployee point of view could be securedbefore making the purchasing decision.The rewarding system in lebanon helpthe companies to achieve their goals , and any employee who has strong skillscould play a key role to help the company to develop in the future and achieve itsgoals which can lead to the sucess of company and in contrast the absence ofemployee that has no skills will lead to the failure of the company and theproduction of each worker will decrease.The employee could leaves thecompany when he feels uncomfortable in thework environment , some factors are : low salary ,lack of advancement,demotivation(coff 1997), these problems leads to employees trunover can decreasecompany productivity .
The role of management is to keep employees and offer theneeds when they feel uncomfortable or underpaid at the work. When there is a lack of skilled employees , the human resourcesdepartment plays an important role in the improvement of organization byselecting the skilled employees and put them in the right places .The HR shouldalso make the employees work in positive and motivated environment which leadsto employees satisfaction.The company can achieve itsfinancial goals by working efficiently and effectively , and the traditionalassets is human assets, the satisfaction of employees occurs when there is a goodrelationship between employees and employers ,pay the appropriate salaryaccording to the efforts, reward itsemployees with bonuses etc.
..Factors thatincrease productivity: 1. Trainingand workshops : Make trainingsand workshops to increase employees efficiency and productivity.2. Proactive Employees : a productive workforce is one that are commited andearnest to their jobs and are given the opportunity to reach their goals freely.Whenmanagement is not hindering (blocking) in the way of its employees, then theemployees are likely be able to do their jobs effeciently and comfortably.
3. EncourageCommunication : Lack of communication cannegatively affect productivity when a mistake is made but not communicated tothe responsible parties. If the mistake is not brought to management’sattention, it will keep on being made again and again. When the mistake isfinally caught, all of the work that was done incorrectly will need to bere-done again.4. Flexible work hours : If all employees were forced to stick to thesame rigid schedule can influence employees productivity.
Allowing employees tohave some flexibility with their work schedules can enhance productivity, buildloyalty with the company and encourage employees to to put all their efforts inthe job.5. Set Clear / Reasonable Goals : Employees will be more motivated and focused if they knowwhat really they are expected to achieve.
Clear goals ,tasks, duties,responsibilites can provide comfortability for everyone. Short-term goals arevery effective when it comes to encouraging employees to properly manage theirspeed in doing tasks to attain their targets.6. Providingfeedback : it is very important to provide feedbackor show that employees are being supervised.After doing every task, accomplishmentsshould be acknowledged, while errors in meeting targets or failing to meet theminimum task requirements should be promptly addressed.
Goodmanagement practices canenhance employee productivity.