Relational Rewards: Creating a Fulfilling Workplace Environment

www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962

Volume-6, Issue-4, July-August 2016 International Journal of Engineering and Management Research Page Number: 1-5

Pradeep Joshi Assistant Professor, Department of e-Commerce, 'The Hermitage' Kumaun University, Nainital, INDIA

ABSTRACT An organization is formed to accomplish its The performance and creativity of the employees stated objectives. For this it must attract and hire people can be considerably enhanced by creating a fulfilling having the necessary competencies in terms of workplace environment. Transactional rewards and pay knowledge, skills attitude and aptitude and offer rewards for performance programmes have their limitations. so that such people can be retained. Rewards are Therefore, the introduction of a wide array of relational inclusive of all offerings which an employee cherishes rewards becomes necessary for the mutual and sustained growth of the individual and the organisation. Relational and desires and the employer is willing to offer in rewards relate to the work situation and to the physical and exchange for employee contributions. Managing rewards psychological well being of the employees. These rewards in largely about managing expectations- what employees satisfy emotional and intellectual demands enabling the except from their employers in return for their employees to make better use of their talents and promote contribution and what employers expect from their interaction with others in a supportive manner. employees in return for these rewards. If rewards are to Prominence to relational rewards in the total reward be meaningful for managing performance through strategy can be a powerful and flexible tool for motivating stimulation of derived behaviours, they must meet the employees to achieve higher performance. In this paper an needs of the employees, man of which pertain to the attempt has been made to analyse the various dimensions of relational rewards and their role in creating a fulfilling workplace environment. The workplace environment workplace environment. specifically relates to the higher order needs of the employees, the fulfillment of which is being increasingly Keywords --- Relational Rewards, Transactional demanded as the economy and society is steadily Rewards, Intrinsic Rewards, Engaged Performance, transforming itself into a knowledge based entity. Fulfilling Workplace Environment People do not leave their lives behind when they come to work. Most employers now recognize this and the best of them openly recognize needs outside I. INTRODUCTION work in their working practices, in the leadership styles and in an inclusive and supporting culture. The emphasis Compensation Management has traversed an in on valuing people rather mobilizing ‘workers’ helping evolutionary trajectory with its theoretical underpinnings employees build on their strengths and strengthening the dating back to the pre-Christian era of Plato and organization. The growing emphasis on employee Aristotle. Economic works of Thomas Num and Thomas engagement as critical to organizational performance R. Malthus analysed compensation and rewards from an means that the concept of reward is exerting more and economic perspective. These ideas were later elaborated more influence on reward strategy. The annual Sunday and crystallised by David Rickardo and Adam Smith in Times ‘Best Companies to Work For’ or the Fortune’ the celebrated theory of marginal productivity. Most Admired Companies’ have highlighted that Economists of various schools including Karl Marx and workplace environment is a crucial reward component. John Maynard Keynes have contributed substantially Being ‘employer of choice’ matters in the board room spawning a number of theories in the realm of and its matters a lot more for those who manage reward. Compensation management. Of late there has been a Employees have become much more sophisticated shift from sheer economics to behaviourial sensitivities. ‘customers’ of total reward offerings and more Compensation or Reward Management is increasingly questioning of what they contain. The rising tide of being viewed not only as a tool of performance literature makes it clear that they want options and a Management but also Human Performance Enhancement measure of customization to their life and work style (HPE) and its role in building and sustaining competitive decisions. advantages being emphasised. Many changes have occurred in the way organizations are designed, structured and staffed. Job

1 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 opportunities and rates of pay have changed and so has employees and material incentives generally do not tend changed the work environment. The conditions forcing to satisfy the basic psychological needs. Gross and these changes will not disappear and their impact on Friedman (2004) remark that rewards are now more than employee compensation and satisfaction will continue to archaic concept of receiving pay checks after a week, have significant influence. Recognizing the paradox of rather they embrace the holistic value scheme that the restrictions even reducing employee wages, salaries and employer recommend to the employee that includes benefits while demanding increased employees compensation (consisting of base pay, short and long awareness and contributions, organizations are now term incentives) benefits (health issues, work/life and taking other actions to improve reward and other benefits) and career (training and development, compensation programmes. An opportunity available to career progression). all organizations is to provide employees at all levels a Chen and Hsieh (2006) indicated that traditional rewarding mix of the elements of the non compensation seniority-based trend has been changed to performance or the nonfinancial reward system. This directly based, monetary trend into non monetary, extrinsic translates to the design and construction of an function into intrinsic, period reward into instantaneous, encouraging a fulfilling and enabling workplace unitary rewards into deferential and independent into environment. coordinated. Schuster and Zingheim (1992) coined the A major part of the reward system consists of word 'new pay' and linked it to organizational and non compensation or nonfinancial rewards called employee performance. They characterised the concept relational rewards. These rewards are much more of new reward by various traits like strategy, flexibility, difficult to classify and their components are far more performance orientation, integration and distinctiveness complex than in the case of compensation rewards. Non with regard to the action of the employees and the compensation rewards are all the situation related employer. Reilly (2003) advocates that unitarist view rewards not include inn the compensation package. point reflects the idea of 'new reward' is very much there These rewards have an almost infinite number of in HR mainstream and the focal point is to shape the components that relate to the work situation and to the mind-set behaviour at work stressing upon the physical and psychological well being of the employees. integration, elasticity and performance. However These rewards satisfy emotional and intellectual philosophical groundwork to new reward is not demands. They make people feel good about themselves, supporting because 'new pay' is not the combination of permit them to make use of their talents and promote compensation practices rather its a contemplation about interaction with others in a supportive manner. the function of reward in a multifaceted organisation. Gross and Friedman (2004) reckoned the human capital II. REVIEW OF LITERATURE strategy for this transition, because it deals with the larger interests of employees regarding their education, The literature on relational rewards is in skills, attitudes and the rewarding process. Human conjunction with transactional rewards in the context of capital strategy is considered as a unique strategy total rewards. The initial literature on compensation is because it aligns the concept of 'best fit’ instead of 'best mainly in terms of transactional rewards. Emphasis on practice', aiming at the distinctiveness of the relational rewards since 1990s has helped in the organisation. evolution of the total reward concept. This concept The concept of total reward has emerged quite incorporates explicitly the critical segment of relations recently and its influence in reward management is rewards. considerable. Total reward as an integral element of Reward is the compensation which an employee reward management is the combination of financial and receives from an organisation for services rendered. It non-financial rewards given to employees in exchange not simply includes money and money equivalents, but for their efforts. As expressed by Lawler (2003), the also elements like favourable interpersonal relationships greatest amount of motivation is present when inside the organisation, having access to decision employees perform tasks that are both intrinsically and making involvement, the challenge and sense to extrinsically rewarding. Total reward strategies are achievement, preferable growth opportunities and other vertically integrated with business strategies and forms which are difficult to measure in terms of money. horizontally integrated with other HR strategies to Reward comprises of all the tangible benefits achieve internal consistency. This view has been shared and provisions an employee is entitled to receive as part by Kaplan (2007), who said that the total reward is a of' the employment relationship" Milkovich and holistic approach aligning business strategy with people Newman, (2004); Malhotra et al. (2007) illustrate that strategy. This reward strategy brings about maximum 'work rewards' are the benefits workers receive from return and builds up employment brand, all of which their workplace and are considered the determinants of create sustainable competitive advantage for job commitment and satisfaction. Bretton and Gold organisations. The conceptual basis of total reward is (2003) define 'rewards' as all the cash, non-cash and that of bundling, so that the different reward processes psychological payments provided by an organization in are interrelated, complementary and mutually return of their contribution. Stone et al. (2010) found that reinforcing. financial incentives are not always welcomed by all

Total reward is fast becoming a more and more rewards binds employees more strongly to the popular facet of compensation and has caught many organization because they cater to specific individual scholars' attentions. As part of human resource needs. Hutcheson (2007) also stated that organisations management practice, total reward has been introduced that practice total reward strategy are able to establish a into various enterprises so that they have the abilities to distinctive set of regards to support the organisations function in a fiercely competitive environment. Total employment brand which enables to attract and retain reward initiatives microscopically accelerate enterprise qualified workforce. It provides a roadmap for the HR development and macroscopically boost the function to review and enrich the total reward offering advancement of social economic environment. and also provides a clear and consistent communication Compared with traditional rewards system, total reward device to remind employees of the full array of rewards. much more deeply reflects in what ways enterprises can The theoretical basis and underpinnings of total attract, motivate and retain talents and achieve corporate reward strategy and the significance of relational goals. rewards can be traced to the Maslow's need hierarchy Total reward encapsulates all the aspects of theory. The higher order needs have relational rewards work that is valued by the employees whether it is ramifications. Alderfer's ERG Theory assumes that related to healthy work environment, belter opportunities people have three types of needs: existence, relatedness of learning and development or the benefits packages and growth, and is partly based on Maslow's thinking. linked to pay. Armstrong and Stephen (2005) describe Unlike Maslow's idea, ERG theory demonstrates that a total rewards as the combination of transactional higher-level need can be a motivator even if a lower- rewards, that is, tangible rewards related to pay and order need is not fully satisfied and needs at more than benefits as a result of transaction between the employee one level can be motivators at any time. Total reward and the employer and the relational rewards that are strategy also follows Alderfer's thought, and the different associated with the work environment and learning and components may be used depending on the development WorldatWork (2000) considers total organization's goals and strategies. The two-factor theory reward as the sum of each component of reward package put forward by Herzberg (1966) divides job-related an employee gets from his organization and everything factors into hygiene factors and motivators, Motivation that an employee perceives valuable as a result of his is significant when both the factors are present. This employment relationship. Total rewards are the implies that different elements of the reward system mechanism that an employer uses to retain, stimulate and must be synchronously provided by the organization to gratify employees. Reflecting on the expansive scope of meet the employees' needs and maintain motivation at total rewards Rumpel and Medcof (2006) observe that it high levels. According to Chiang and Birtch (2007) the is a holistic approach beyond just pay and benefits, utility and enticement entrenched in reward is revealed Zingheim and Schuster (2001) reported that employees in a variety of theoretical perspectives. The dichotomy of are likely to work more then ‘just for money’. Whatson intrinsic and extrinsic rewards has originated from the and Singh (2005) contend that it takes more than merely term unilitarianism' and suggests that people's cash to engage and retain a high quality work force. behaviours are modifiable so by providing extrinsic According to Giancola (2009) the total rewards notion reward their performance can be enhanced. The term broadens the prior concept to total compensation which 'romanticism' refers to intrinsic motivation that boosts usually address the high-priced benefit programmes. the innovation and creativity of the employees. These The aim of total reward is to maximize the two intrinsic-extrinsic dimensions are mostly kept combined impact of a wide range of reward elements on separate in expectancy theory and dealt in an entirely motivation, commitment and job engagement. According distinct psychological perspective. Expectancy theory to O.Neal (1998) a total reward strategy is critical to does not distinctly differentiate between intrinsic and addressing the issues created by recruitment and intrinsic rewards holding that both serve the same retention as it creates a work experience that meets the psychological process of initiating motivation in needs of the employees and encourages them to expend employees. more effort. Pfeffer (1998) States that the significance of Azasu (2009) suggested the 'Principal-Agency total reward is in creating a challenging work- Theory' in which mostly people are opportunist and environment in which individuals are able to use their always motivated through monetary rewards, while abilities to do meaningful jobs for which they are shown socio-economic theorists argue that people are neither appreciation which further enhances motivation. inclined toward monetary reward nor they have a Armstrong (2006) stresses that the benefits of total homogenous approach. They might be fascinated by a reward approach include a combined effect of different cocktail of monetary and nonmonetary rewards to type of rewards that make a deeper and long-lasting enhance their motivation. impact on the motivation and commitment of employees. The complexity of today's business Also, the employment relationship created by a total environment has imposed continually changing settings reward approach makes the maximum use of relational in which organisations compete for survival. As a result, as well as transactional reward and therefore appeal special emphasis is placed on acquiring and retaining more to employees. Besides, a system of total rewards quality employees as this is seen as a key factor allows flexibility to meet individual needs as relational underpinning organisational success. Although it takes a

3 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 great deal of other resources to run a business, nonfinancial rewards, which include intrinsic rewards employees have been identified as the most valued from the employment environment and the work itself resource which determines the success of every business. are integrated together. The holistic approach of total As Milkovich and Bondreau (1988) observe that plant, reward does not place reliance on singular reward equipment and financial assets are resources required by mechanisms operating in isolation. Account is taken of the firms but employees are particularly important all the ways in which employees can be rewarded and because if their creative minds are taken away obtain satisfaction through their work. The objective is organisations are just pile of papers, blocks and metals. to offer a value proposition and maximize the combined Thus, the ability of organisations to create a sustainable impact of a wide range of reward initiatives on competitive advantage in today's dynamic business motivation, commitment and job engagement. As Sandra environment depends greatly on employees' ideas and O, Neal (1998) has explained; "Total reward embraces innovations, making them the most valuable assets in everything that employees value in the employment organisational success. As rightly stated by Deeprose relationship." WorldatWork (2000) also offer a wide (1994), effective reward system improves employee definition stating that total rewards are "all of the motivation and increase employee productivity which employer's available tools that may be used to attract, contributes to better organisational performance. Hence, retain, motivate and satisfy employees". As Paul total reward which is a combination of both financial and Thompson (2002) suggests: "Definitions of total reward non-financial rewards to gain employee commitment typically encompass not only traditional, quantifiable cannot be over emphasised. The implementation of total elements like salary, variable pay and benefits, but also reward strategy improves not only employees' more intangible non-cash elements such as scope to motivation, efficiency and performance but also their achieve and exercise responsibility, career opportunities, psychological contract and overall organisational learning and development, the intrinsic motivation behaviours. Moreover, as organisation’s success is tied provided by the work itself and the quality of the work- to peoples innovations, rewards have become strategic life offered by the organisations." The total reward which confirms why organisations whatever their size approach facilitates the adoption of a more emotionally and business orientation are looking for better ways to intelligent way of working. It requires the use of the key reward their employees for a sustainable competitive competency levers of self management, social- advantage. awareness, self-awareness and relationship management in an organisational context. This approach helps in III. FULFILLING WORKPLACE building a leadership that helps in significantly raising ENVIRONMENT the production. The conceptional basis of total rewards is that of grouping or assembling so that the diverse reward The profitability of an organization depends processes are interrelated, complementary and mutually upon the performance and productivity of its employees reinforcing. This is the basis of Hay Group Model of vis-a-vis the compensation costs. The earlier notion, that Engaged Performance, WorldatWork and models performance related pay could indefinitely increase developed by other consulting firms. Total reward productivity does not hold true as performance related strategies are vertically integrated with business pay operates within fixed boundaries. The focus on strategies and horizontally integrated with other HR factors creating engaged performance which started in strategies to achieve internal consistency. the late 1990's has attached increasing importance to the Essentially, the concept of total reward states nonfinancial or relational rewards that are associated that there is more to rewarding people than just giving with the work environment and learning and them money. As Murlis and Watson (2001) put it. "The development rather than financial or transactional monetary values in the reward package still matter but rewards, which are about pay and employee benefits. they are not the only factors”. Cash is a weak tactic in This highlights issues about what employees value most the overall reward strategy, it is too easily replicated. in the shape of rewards. These include matters such as Intrinsic reward is far more difficult to emulate." Pfeffer inspiration, values, reputation of the organisation and (1998), perhaps gave the most powerful argument for the opportunities for learning, growth and development. total rewards approach for building a conducive work The growing emphasis on employee environment stating "Creating a fun, challenging and engagement as critical to organizational performance empowered work environment in which individuals are implies that the concept of total rewards with added able to use their abilities to do the meaningful jobs for emphasis on relational rewards is exerting more and which they are shown appreciation is likely to be a more more influence on reward strategy. The total reward certain way to enhance motivation and performance- concept highlights the importance of considering all even though creating such an environment may be more aspect of reward as an integrated and coherent whole. difficult and take more time than simply turning the Each of the elements of total reward- base pay, reward lever." performance based pay, employee benefits and

Fig. 1: Components of Total Rewards

Source: Reward Management: Michael Armstrong, Helen Murlis.

The total reward concept distinguishes between In the late 1990s Hay Group developed a model transactional rewards, which are financial in nature and from their employee opinion and rewarding work, which are essential in recruiting and retaining employees and while considering both transactional and relational can easily be copied by competitors, and relational reward focused on what employees defined as a reward which are concerned with learning and compelling high-performance workplace. This model development and the work experience and are essential comprises of six elements: Tangible rewards, Inspiration to enhancing the value of transactional rewards. and values, Future growth and opportunity, Quality of Work, Enabling environment and Work/life balance.

Fig. 2: The Hay Group Engaged Performance Model

Source: Hay Group

Tangible rewards are transactional rewards The leadership styles and behaviours fostered while the rest represent relational rewards. Research by and used in an organization have a major impact on the Hay Group among employees in UK and elsewhere values of the organization and the way it behaves. As suggest that the ‘inspiration and values' cluster, followed Goleman, Boyatzis and Mckee (2002) observe "A by 'future growth and opportunity' cluster, is what cranky and ruthless boss creates a toxic organization employees value must, with tangible rewards coming filled with negative under-achievers who ignore third or fourth in priority except in those organizations opportunities: an inspirational, inclusive leader spawns where there has been a decline in salary. acolytes for whom any challenge is surmountable." Leaders play a vital role in total reward management. IV. RELATIONAL REWARDS They ensure that tasks are achieved and strategies delivered by building and maintaining supportive and Inspiration and Values constructive relationships between themselves and the other employees in their team or group leaders are the

2 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 sources of important rewards such as recognition consequences of having winners and loosers. Procedural through effective feedback, providing the scope to carry justice is very important here and needs thought and out meaningful work, and providing opportunities for careful management. development and learning. They are crucial to the Communication is not just about the quality of success of performance management and to the values organizational communication, transparency and honesty underpinning tangible rewards. but an important part of the 'respect equation' called The vital importance of the core values of an 'employee voice' Perter Boxall and John Purcell (2003) organizations as a basis for creating a rewarding work define it as; "Employee voice is the term increasingly environment was clearly identified by the research used to cover a whole variety of processes and structures conducted by Purecell (2003) and his colleagues. The which enable and sometimes empower employees most successful companies had what the researchers call directly and indirectly to contribute to the decision 'the big idea'. These companies had a clear vision and a making of the firm." Having a voice in the affairs of the set of values, which were embedded, enduring, firm is rewarding because it recognises the contribution collective, measured and managed. They were concerned people can make to the success of the organization or with sustaining performance and flexibility. Clear their team. evidence exists between positive attitude towards HR Employees can have a voice as an aspect of policies and practices, level of satisfaction, motivation normal working relationships between themselves and and commitment', and operational performance. their managers and as such it is linked closely to reward People prefer to work for a high-reputation factors such as recognition, opportunities for employer. Employees feel proud if their organisation is achievement and risk sharing. The organization through included in the 'Best Companies to Work For' surveys or its policies for involvement can provide motivation and attract favourable press coverage. The sense of shared increase commitment and engagement by putting people appreciation encourages employees to improve their into situation where their views can be expressed, performance. listened to and acted upon. This is central to Linda Employees have a strong sense of unfairness if Gratton's (2004) concept of ‘democratic enterprise' they are asked to shoulder unacceptable levels of risk in where she focuses on the importance of adult-adult an organisation. On the pay front this can involve being relationship, that has at its core 'the ‘quality of openness’ on a highly geared incentive or commission scheme [that] is the communication between the individual and where fixed pay element is very small. his or her boss as well as the involvement the individual Recognition is one of the must powerful feels in the everyday working of the organization. methods or rewarding people. They need to know not Future Growth and Opportunity only how well they have achieved their objectives or Learning and development is an intrinsically carried out their work, but also that their achievements satisfying and rewarding experience. Ed Lawler (1969) are appreciated. Recognition needs are linked to the remarks, People enjoy learning. There's no doubt about it esteem needs in the Maslow's hierarchy of needs. These and it touches on an important 'treat people right’ are defined by Maslow as the need to have a stable, principle for both organisations and people." Alderfer firmly based, high evaluation of oneself and to have the (1972) emphasized the importance of the chance to grow respect of others. These needs are classified into two as a means of rewarding people and therefore motivating subsidiary sets: first, 'the desire for achievement, for them. He wrote: "Satisfaction of growth needs depends adequacy, for confidence in the face of the world, and on the person finding the opportunity to be what he or for independence and freedom' and second, 'the desire she is most fully and become what he or she can." for reputation or status defined as respect or esteem from Employers can offer this opportunity by providing other people and manifested by attention, importance or people with a sequence of experience and training that appreciation.’ helps equip them for whatever level of responsibility Recognition can be provided by positive and they have the ability to reach. Talented individuals can immediate feedback and praise where it is well deserved. be given the guidance and encouragement they need to Financial rewards closely linked to successful delivery fulfill their potential and achieve a successful career in are also an important part of mutually reinforcing line with their abilities and aspirations. It helps to work systems of recognition. Recognition is also provided by within the context of a 'learning organisation' and managers who listen to or act upon the suggestions of provisions can range from planned experience gathering their team members and acknowledge their to formal programmes. These can take the form of contributions. Other actions, that provide recognition management and leadership programmes, team include promotion, allocation to a high-profile project, leadership development, further skills training, enlargement of the job to provide scope for more mentoring and one-to-one coaching. Coaching is now interesting and rewarding work, and other forms of making a significant contribution to fast-track learning at status or esteem symbols. The use of status symbols has senior levels where very specific behaviourial issues to be exercised with caution as they can be divisive. All may need tackling and where the time or inclination to informal rewards used without sensitivity can form a go on broader leadership programmes is often lacking. zero-sum game; one person's recognition can imply an Career advancement opportunities are linked to element of non-recognition to others and the the learning and development part of the talent

2 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 management process. Employees especially new value to perform the roles effectively and have a high employees are concerned as to how the organization degree of autonomy over setting their own goals and manages and progresses talent. They want reassurances defining paths to these goals. that processes are in place for identifying talent, for The need to achieve is felt in varying degrees succession planning and for fair and reasonably by all people in all jobs. The level at which it operates transparent means of making promotion decisions. For depends on the orientation of the individual and the the application of this rewards, organizations need to be scope provided by the work to fulfill a need for clear what the criteria are for making lateral and achievement. Employees feel rewarded and motivated if diagonal moves as well as promotion. Competency they have the scope to achieve as well as being framework can help a lot here since this can provide recognized for their achievement. If achievement additional clarity about what matters to their motivation is high it will result in behaviour such as organization. taking control of situations or relationships directing the Performance improvement and feedback as a course of events, creating and seizing opportunities, means for effective performance management is a enjoying challenges, reacting swiftly and positively to powerful way of providing total reward. It can be the new circumstances and relationships. People who are basis for developing a positive psychological contract by driven by the need to achieve are likely to be proactive, clarifying the mutual expectations of managers and their to seek opportunities and to insist on recognitions. Those staff in an environment focused on success, constructive whose orientations are not so strongly defined can be feedback can be highly motivational. People who are helped to satisfy latent and dormant achievement needs allowed to claim their successes and review what they by being given the scope and encouragement to develop could do differently in an adult-adult content are given and use their abilities productively. Achievement the opportunity to extend their range. Performance motivation can be supported and developed by reviews should inform personal development planning organizations by helping develop self-confidence and and encourage self-managed learning. Success should self-esteem, by sound job design and by a constructive breed success in the creation of a high performance approach to performance management. culture. Poorly handled feedback, arbitrary performance Freedom and autonomy is desired by people rating and forced distributions, lack of follow through on and they don't prefer to work in a command and control performance agreements and poorly communicated based work environment. They expect to be treated as recognition are the common pitfalls that should be mature adults and given a measure of freedom and avoided. autonomy in the way they go about their work. This goes Quality of Work with the high-trust work places which are more likely to Perception of the value of work as appreciable achieve a real performance culture. People who feel and worthwhile help people channel their discretionary constrained or micromanaged are very unlikely to be effort into more productive work. In an increasingly engaged in their work, and this climate is unlikely to be knowledge-based economy very few people would be one fostering much discretionary effort. Therefore, interested in doing repetitive and monotonous jobs organizations have much to gain by supporting and which offer very little challenge and interest, if at all. enabling a high degree of freedom and autonomy. For professionals, challenge and interest are typically The workload issue is essentially about the critical components of their intrinsic reward package. To place of work and manageable workloads. People make jobs challenging and interesting, the contribution working on production lines where the pace of work in of job design and role development needs to be not under their control and not reasonable or manageable considered. Job design primarily has two objectives; find this stressful, and work quality as well as motivation first, to meet the needs of the organisation for suffers. Professionals working in a long-hours culture operational efficiency, quality of product or service and where there is little recognition of the pressure to productivity and second, to reward individuals by perform tend to feel the same. There is a marked trend satisfying their needs for meaningful work that provides for employees in high-pressure jobs who like the work, for interest, challenge and accomplishment. The roles but not the constant pressure, to seek parallel rewards by people play at work usually develop as they respond to restricting their time contract or take additional time off opportunities and changing demands, acquiring new to get a real break. skills and developing their competencies. Jobs and roles Quality of leadership is important, but quality should be suitably modified over time by managers and of colleagues matters too. Having congenial supportive team members to make the best of people's skills and and reasonably likeminded fellow employees can make a capabilities to provide optimum levels of intrinsic big difference to engagement. A positive answer to "Do I reward. Ed Lawler (2003) identified intrinsically have a best friend at work?" is one of the twelve key in motivated jobs as those where individuals received indicators identified by Marcus Buckingham and Curt meaningful feedback about their performance in roles Coftmon (1999) as critical to a high-performance where they had accountability for a complete process or environment. This is also an area where talent product, or a significant part of it, and where there was management policies can pay rich dividends if the scope of self evaluation. Such roles must be perceived organization has recruited for behaviours such as by individuals as requiring them to use abilities they effective team working and service orientation that

3 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 require collaboration and are typically essential to high because they stay on after normal finishing time. It's performance. They help good relations at work. what they deliver and not how long they work. Enabling Environment Organisations have widened their talent pools Physical environment makes a significant by having family-friendly flexible working policies, difference to how people feel about their work. Well tackling long hours cultures and putting in resources to designed and organised offices boost productivity of make this work. This has benefitted by gaining higher employees. Organisations are tailoring their work levels of motivation from those for whom flexibility environment to match evolving work styles and be more makes the difference at their particular stage of life. This appealing as a place to spend working hours. A shoddy approach is now being further extended with the removal work environment can give depressing messages about of fixed retirement age and introduction of flexible how much the organisation values employees and the retirement options. standards it expects of them. Employees now regard The social environment element recognises the access to training as a key element in their overall reality that work is a social institution and that package. It can be particularly important in delayered employees expect, at least to some degree, to have a organisations where upward growth through promotion work place that is some kind of community. Often these can be restricted but people can still work on will be expressed by activities with colleagues but effectiveness in their current role or develop laterally. As outside work, or social activities may take place in jobs and rules evolve, organisations generally need to working time and they may be organized by the provide to help maintain and raise performance and employer or otherwise. If they are largely missing and learning. Effective training helps maintain motivation work is seen as an impersonal and unsocial environment and engagement and is a clear sign of organizational this will have an effect on levels of engagement. For investment in its people. It also fosters employability promoting and fostering this element some investment both within the organization and beyond, and enhanced may be required, if not in financial terms then in time employability is itself perceived as a reward. and leadership effort to improve the social climate. The area of information and processes covers the information support provided as part of the work V. CONCLUSION processes and nature and quality of the work processes themselves. There are links to communication and job The notion of relational rewards is a basic design and similar imperatives apply. Most employees feature of Behavioural Economic Models which started want to work with open, transparent information flows developing in the later half of twentieth century. It was on issues affecting their work, and they generally expect acknowledged that the productivity of an organisation bureaucracy to be minimised as far as possible. An can be influenced significantly by management practices environment should be created where knowledge sharing which incorporate need and behavioural aspects of an is more respected than a 'knowledge is power' mindset, individual. Relational rewards assumed more importance and people can be easily demotivated by secretiveness in the transition from a manufacturing workplace to a and the lack of trust that it results in. work environment having a knowledge-driven nature. In Work/life balance this emerging environment, the employees make greater People prefer a supportive environment at use of their intellectual faculties within a problem- work. Most employers now recognize this and the best solving and decision-making framework Since such task of them openly recognise needs outside work in their assignments are mentally intensive employees can derive working practices, in the leadership style in use and in an intrinsic satisfaction and motivation in doing them. inclusive and supporting culture. The emphasis is on Theorising in this area become more focused with the valuing people rather than mobilizing 'workers' helping total reward concept being defined by World at Work employees build on their strengths and creating a and further developed by The Hay Group. The hay supportive environment which is critical for achieving Group's model of engaged performance constructed the organizational goals. various dimensions of relational rewards. This area There has been a rising trend of flexible became more interesting when it was contested that pay working arrangements. Maternity and paternity for performance could reduce employee motivation and provisions are important in this, but also critical are block improved performance in a task with intrinsic employer attitudes to ongoing family responsibilities, potential to motivate. In such tasks extrinsic rewards notably childcare and eldercare issue. It is not would not be valued and could result in lower task uncommon now for employers to support and enable motivation. Intrinsic reward would be more useful in part-time working, flexible contracts and working from such situations. home. This is seen as an investment and talent Prominence to relational rewards in the total management issue. Much depends on the level of trust reward strategy can be a powerful and flexible tool for and on raising these among managers who are initially motivating employees to achieve higher performance. skeptical. Work/life balance policies can therefore Such a strategy can help organisation to stay ahead of reward people by recognising their needs outside work competition as it establishes a distinctive set of rewards by providing more flexible working arrangement and that serve as a differentiator for both attracting and making it clear that people will not be rewarded simply retaining talent. The combined effect of both

4 Copyright © 2016. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 transactional and relational rewards increase mutual [7] Chen, H.M., and Hsich, Y.H. 2006. Key Trends of leverage creating a deeper and long lasting impact on the Total Reward System in the 21st Century. employees' performance and commitment towards Compensation Benefits Review, 64-70. sustainable organisations success. Relational rewards [8] Chiang, F., and Britch, T. 2007. The Transferability appear to bind employees more strongly to the of Management Practices: Examining Cross-National organisation as they deliver a positive psychological Differences in Reward Performances. Human Relations, contract that meets specific individual needs. It should 1293-1330. however be noted that the effectiveness of a reward [9] De Charms, R. 1968. Personal Causation: The system being used depends upon the broad Internal Affective Determinants of Behaviour. 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