Reward Systems in Business

Most business organizations in the world pay little attention to compensation systems, especially with respect to employee incentives. This problem caused a major discussion between the labor society and global human resources specialists. Meanwhile, experts in organizational behavior such as Herzberg and Maslow believe that the compensation system could have a significant impact on the performance of employees, and thus the performance of the organization. The objective of this research is to study the importance of the compensation system, especially with regard to employee incentives, to emphasize the main elements of a successful reward system.

Compensation system: The business compensation system emphasizes only short-term compensation. Managers may increase short-term concerns over long-term concerns and marketing plans are not just short-term concerns. Basically, in the long term, the focus is on what the administrator may underestimate, and the marketing plan is considered a secondary focus. Lack of knowledge and skills: In the planning process, administrators may not have the lack of sufficient market segmentation, competitive advantage and the nature of strategic objectives and the core strategy to be considered as an analysis of the competitive situation I do not. Failure

Compensation management system needs to support business strategy. Therefore, there are different ways, but they all fall into several general overall approaches. One important determinant in deciding which method is most effective is the degree to which an enterprise wishes to integrate between its compensation system and the other personnel systems and policies it uses. Opportunities to take advantage of real competitive advantage come from integrating compensation management, performance management, career management and personal development systems into a whole rather than treating each system separately It can be said. An important step in redesigning the system compensation management system is to determine a compensation strategy and decide how well to integrate it with other HR systems. This provides the overall framework of the compensation system and must be closely related to the business strategy