Solution

Importance to culture

Principles of rewards impacts organisational culture by setting positive behaviours and attitudes within the organisation. If Body Image wants to create an innovative culture, then it will need to reward employees for their creative ideas. This has positive culture that is crucial for keeping employees. Reward designed around principles of rewards can connect employees to organisational purpose because they help to integrate values and ethos into culture. However, failing to design rewards around reward principles can negatively impact culture by contributing toward employee dissatisfaction and perceptions of unfairness.

Importance to performance management

Fair and transparent rewards boost employee motivation and satisfaction needed to achieve organisational goals and objectives (Hearn, 2018). Reward are importance in performance because they encourage employees to continue working harder. Performance management also helps to track progress and reward individual contribution. The negative impact can arise when managers fail to reward people for their good work. This can see performance decline and high absence rates.

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