Rewards and Recognition Strategy

In a world characterized by increased global competition, and a rapidly changing business environment, companies and organization are forced to continuously reevaluate how they work. Research shows that employee compensation can account for as much as 70-80 percent of companies cost, but also show that the value of a company’s human capital can significantly affect the market value of the company. Studies also show that managers see non-monetary reward and recognition systems as very effective in reaching eight out of ten organizational objectives.

Another problem facing international companies is establishing themselves in cultures vastly different from their own, in regards to organizational as well as national cultures being different.

This background led us to our problem formulation:

How does organizations use Reward and Recognition strategies and how do their co-workers perceive these strategies with a focus on motivation and job satisfaction?

And our purpose:

We want to examine potential gaps between evidence and practice on Reward and Recognition Strategies. Furthermore we want to develop and understanding of how co-workers perceive these strategies.

Increased global competition, new knowledge and a rapidly changing business environment forces companies and organizations to constantly evaluate and re-evaluate how they work. Many times organizations may drastically change their method of operations, which puts great focus on the HR-strategies and operations of an organization. Companies often claim that their employees, or human capital, are their most important asset. In the new millennia, issues such as the meaning of life and self-identity, environmental change and the role of work in one’s life are all central topics of discussion. Work motivation as an area of psychology has always been focused on a positive approach, efforts