1.1 Evaluate the principles of reward and its importance to organizational culture and performance management.

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The importance of reward management

Mutually beneficial

The reward system benefits both the employee as well as the organization in many ways. For the employee, the motivation level is enhanced when he/she is given a reward. This ultimately benefits the organization as the employee works with more dedication


Organisations look for loyalty and this can only be attained when employees are being valued and appreciated for their work.


More motivated to work harder.by having a reward system in place the employee will feel more committed to their work and their productivity will increase. An increase in productivity will then benefit the organization. Therefore a reward system is mutually beneficial to the employee and the organization.


A reward system will reduce absenteeism in the organization. Employees like being rewarded for a job well done and if there is a reward system in place, employees will be less likely to be ringing in sick and not showing up for work. Also by having a reward system in place the employees will be clearer about the targets and goals of the organization as they will be rewarded when reaching certain targets. So by having a reward system as an incentive they will be less likely to be absent from work.


A reward system will increase the employee’s loyalty to the organization. With a reward system being in place the employee feels valued by the organization and knows that their opinion matters. If an employee is happy with the reward system, they are more likely to appreciate the workplace and remain loyal to the organization


Having a reward system in place providing employees with incentives and recognition will boost their morale. Encouraging employees to meet goals and targets gives them clear focus and purpose which will their morale. The employee`s morale being boosted will increase the morale of the entire organization. This is all down to a reward system in the organization.


The reward system will increase the teamwork spirit in the organization. The reward system will promote teamwork among the employees. The employees will work together as part of a team to achieve their targets in return for rewards. Teamwork within the organization will help increase efficiency and create a happier workplace. This is another reason why reward systems are important in business organizations.

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