Solution
Reward management helps organisations develop their productive setting through the establishment of a performance management system that reinforces their operational structure (Cotton, 2023). When recognition systems receive proper design they drive motivation levels which creates satisfaction among staff members and guides their activities toward organisational objectives. The organisational performance and culture of Eco-Insulate UK experience significant impact from three reward principles which include fairness and transparency along with equity.
Equity
Fair employee compensation using equity focuses on their job quality and education along with marketplace pay standards. The comparison between individual compensation and job contribution against the rewards received by colleagues as per Adams’ Equity Theory leads employees to feel discontented and uninvolved (Armstrong and Taylor, 2023). Employees at Eco-Insulate UK show dissatisfaction and high departures because the company does not provide pension benefits or incentive schemes to its staff. The right structure of reward systems should include performance-based incentives that allow every employee to feel motivated as it leads to better organisational culture and enhanced productivity.
Fairness
Cotton (2023) explains that fairness functions within Eco-Insulate’s organisational culture since it creates positive employee relations together with better work output. Internal trust in management declines as employees recognise unfair compensation thus creating negative work environments where workers become detached from their roles. Regular compensation reviews demonstrate employee worth to workers. The wages a company offers their employees when they match both work abilities and job responsibility levels and performance results stop workers from feeling disrespected during work hours. Each payment increment depends on employee work performance achievements which leads to enhanced productivity. Workers fail to grow more productive while their work quality does not improve through unjust organisational systems.
Transparency
A well-translucent reward management system enables staff members to understand the fundamentals behind reward system creation and distribution procedures. Employee distrust develops together with work disconnectment when organisations withhold their processes from employees thus generating negative leadership perceptions (CIPD, 2021). Standard employee benefits at Eco-Insulate…….
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