Effective Reward and Incentive Scheme for Effective Organizations

Abstract

Effective reward and incentive scheme has become a tool for organizational effectiveness in the 21^st century.  Effective reward and incentive scheme can benefit many organizations if managed properly. In this era of globalization there is need for effective reward and incentive scheme in order to enable organizations respond quickly to changes in the environment. The paper reviews literature on the effect of effective reward and incentive scheme on organizational performance. The paper concludes that the success of organizations to a very large extent depends on how effective their reward and incentive schemes are. The paper recommends that managers should put in place an effective reward and incentive scheme that sufficiently motivates employees as this could enhance their productivity, responsiveness and commitment to the achievement of the organizational goals..

Keywords: Effective reward scheme, Effective incentive scheme Organizational performance, Employee involvement.