Motivation and Reward System

Introduction Some people think that measuring the success of a company depends on the interests of the company. Today, however, this change will change with market changes. Profit is an important factor of the company compared to before, but it is not the most important factor. For the company, employees have become the backbone of the company's life. In this context motives and compensation systems have been used in companies, but the two companies do not use the same motivation. Motivation and reward systems will help improve employee productivity, but the system can attract more important employees with high academic background or perfect skills.

To be effective, the reward system must recognize the source of two motivations. All compensation systems are based on the assumption of attracting people, holding them and motivating them. Remuneration is an important part of the compensation system, but there are other factors that will motivate employees and affect performance levels. Compensation practices and policies are interrelated through an employee's perspective that remuneration management needs to consider the expectations, expectations, and needs of employees as stakeholders within the organization. You also need to consider the needs or opinions of other stakeholders, especially private sector owners and government agencies, municipalities and trustees at other locations.

Literature review identifies the importance of compensation for employee motivation. The reward system has evolved from a one-dimensional financial incentive to an integrated system that encompasses all tangible and intangible aspects in the form of a comprehensive reward system. Motivation is more affected by intangible rewards such as recognition. The comprehensive compensation system plays an important role in determining the level of employee motivation.

The motivation part of work includes the definition of motivation, the process of motivation, and the theory of motivation. The Compensation System section includes compensation types that are internal compensation and external compensation. Furthermore, by analyzing the relationship between motivation theory and rewards, the content and process theory, that is, the hierarchy of Maslow's needs, Herzberg's two-factor theory, Odfri's ERG model, and McClelland's learning needs theory are analyzed. Process theory includes Bloom expectation theory and Adam fair theory.