Rewarding team performance Essay Example | Topics and Well Written Essays - 1250 words

Rewarding team performance - Essay Example There is a perception that rewards are often more costly for the employer but to have a motivated and enthusiastic team gives much more returns to the business and even contributes towards the growth which are much more profitable for the firm in comparison to the cost that the employer incorporates reward system. Rewarding team performance can be defined as a mechanism through which the employees are motivated to create more high standards of performance so as to contribute towards the growth and success of the organization (Armstrong, 2012). It can also be termed as acknowledging the hard work of the team to achieve the common goal by the management. According to Bob Nelson in his book, â€Å"1001 ways to reward employees† states that there are many different forms of schemes for rewards that are used by many organizations to reward and motivate their staff. The rewards that are given to the employees can be very costly or less costly but all that should be taken into consideration by the employer is that the rewards that are given should be of value to the employees and the entire system of rewarding should be unbiased where the same team member should not be given rewards. An organization that has lower budget for their reward system can use methods such as a voucher, thank you note, cake, etc., to appreciate performance of the team. The organization with a bigger budget for the team reward system can incorporate measures such as team events, lunch, a holiday package, etc. The most formal way of rewarding team performance is through bonuses, increase in salaries, promotions, etc. The bonuses or salaries that are linked to the performance require an organization to set goals or KPIs so as to measure the overall performance or that of an individual. The incentives then can be classified as performance related bonus as team or individual basis on achieving the goals, performance