How a Proper Performance Related Reward System Can Contribute to Work Performance Excellence


Performance related rewards came in picture in recent years for so many reasons. That includes rewards as motivation for employees to excel, reduce employer-employee conflicts and ensure fair reward treatments. This also includes a response to a call of worker’s dissatisfaction at work, poor work performance, negative attitudes, lack of motivation and agency problems. These “ills” will only be “cured” if there are proper performance measures in place. This study examined how a proper performance related reward system can be used as a tool to enhance work performance. The study include different performance related reward systems that may be embraced by management to foster work performance, what performance appraisal measures need to be put in place and the relationship between performance related reward systems and work performance. The benefits of embracing the Performance based rewards are also discussed.

Share and Cite:

Hamukwaya, S. and Yazdanifard, R. (2014) How a Proper Performance Related Reward System Can Contribute to Work Performance Excellence. Open Journal of Business and Management, 2, 189-194. doi: 10.4236/ojbm.2014.23023.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Lussier, R.N. (2009) Management Fundamentals: Concepts, Applications and Skill Development. South Western Cengage Learning, Mason.
[2] Tsai, K.H., Chou, C. and Chen, M.Y. (2008) Does Matching Pay Policy with Innovation Strategy Really Improve Firm Performance? An Examination of Technology-Based Service Firms. Personnel Review, 37, 300-316.
[3] Tsun, J.C., Shang, P.Y. and I-Jan, Y. (2007) The Effects of Joint Reward System in New Product Development. International Journal of Manpower, 28, 276-297.
[4] Gross, R., Elhaynay, A., Friedman, N. and Buetow, S. (2008) Pay for Performance in Islaeli Sick Funds. Journal of Health and Management, 22, 23-35.
[5] Barth, E., Bratsberg, B., Haegeland, T. and Raaum, O. (2008) Who Pays for Performance? International Journal of Manpower and Management, 29, 8-29.
[6] Mason, W. and Watts, D.J. (2010) Financial Incentives and the Performance of Crowds. ACM SigKDD Explorations Newsletter, 11, 100-108.
[7] Zhou, Y., Zhang, Y. and Sánchez, A.M. (2011) Utilitarianism or Romanticism: The Effect of Rewards on Employees’ Innovative Behaviour. International Journal of Manpower, 32, 81-98.
[8] Canos-Daros, L. (2013) An Algorithm to Identify the Most Motivated Employees. Management Decision, 51, 813-823.
[9] Irs, R. and Türk, K. (2012) Implementation of the Performance-Related Pay in the General Educational Schools of Estonia: Perspectives and Possibilities. Employee Relations, 34, 360-393.
[10] Mao, N., Song, H. and Han, Y. (2013) High-Performance Work Systems and Influence Processes on Employees’ Attitudes: Perspectives from China. International Journal of Manpower, 34, 736-752.
[11] Crumpton, M.A. (2013) Keeping Motivation Going. The Bottom Line: Managing Library Finances, 26, 144-146.
[12] Markova, G. and Ford, C. (2011) Is Money the Panacea? Rewards for Knowledge Workers. International Journal of Productivity and Performance Management, 60, 813-823.
[13] Rack, O., Ellwart, T., Hertel, G. and Konradt, U. (2011) Team Based Rewards in Computer-Mediated Groups. Journal of Managerial Psychology, 26, 419-438.
[14] Bamberger, P.A. and Levi, R. (2009) Team-Based Reward Allocation Structures and the Helping Behaviours of Outcome Independent Team Members. Journal of Managerial Psychology, 24, 300-327.
[15] Babtiste, N.R. (2008) Tightening the Link between Employee Wellbeing and Performance: A New Dimension for HRM. Management Decision, 46, 284-309.
[16] Koopmans, L., Bernards, C.M., Hilderbrandt, V.H., Schaufeli, W.B., De Vet, H.C.W. and Der Beek, A.J. (2011) Conceptual Frameworks of Individual Work Performance: A Systematic Review. Journal of Occupational and Environmental Medicine, 53, 856-866.
[17] Ou, W.M. and Wang, H.D. (2009) The Influence of Controllability on Compensation: A View through Data of Major League Baseball. International Journal of Commerce and Management, 19, 321-336.
[18] Silveira, G.J.C., Snider, B. and Balakrishnan, J. (2013) Compensation-Based Incentives, ERP and Delivery Performance: Analysis from Production and Improvement Perspectives. International Journal of Operation and Production Management, 33, 415-441.
[19] Wiley, J.W. (2010) Driving Success through Performance Excellence and Employee Engagement.
[20] Becton, J.B., Giles, W.F. and Schrader, M. (2008) Evaluating and Rewarding OCBs: Potential Consequences of Formally Incorporating Organisational Citizenship Behaviour Performance Appraisal and Reward Systems. Employee relations, 30, 494-514.
[21] Schmidt, W., Trittel, N. and Müller, A. (2011) Performance-Related Pay in German Public Services: The Example of Local Authorities in North Rhine-Westphalia. Employee Relations, 33, 140-158.
[22] Prowse, P. and Prowse, J. (2009) The Dilemma of Performance Appraisal. Measuring Business Excellence, 13, 69-77.
[23] Human Resource Management International Digest (2010) Keeping the Top Talents on Board: Retaining the Best Is as Good as Retaining Them. 18, 20-32.
[24] Wiley, J.W. (2012) Giving Employees What They Want Can Provide Employers with What They Want. Employment Relations Today, 39, 45-53.
[25] Westover, J.H., Westover, A.R. and Westover, L.A. (2010) Enhancing Long-Term Worker Productivity and Performance: The Connection of Key Work Domains to Job Satisfaction and Organizational Commitment. International Journal of Productivity and Performance Management, 59, 372-387.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.