Reward System With The Advantages and Disadvantages

University: ARU London

  • Unit No: 011
  • Level: High school
  • Pages: 5 / Words 1280
  • Paper Type: Essay
  • Course Code: MOD003486
  • Downloads: 879
Question :

This assessment will cover the following questions:

  • Tescois a British multinational retail industry of the United Kingdom. Identify the importance of reward system in an organisation and how it influences conduct of employees.
  • What are the main reason behind adopting reward system.
  • Examine the internal and external factors and its impact on implementing the reward system.
  • How reward system addresses the specific motivational need amongst employees.
Answer :
Organization Selected : TESCO


Human resources is the lifeblood of an organisation by which the goals and objectives are achieved. There are plans and policies for managing the people working in the organisation to make them give their best efforts (Cascio, 2015). Furthermore, programs and development sessions are conducted in order to encourage personnel to achieve the goals. In this report, TESCO has been chosen which has its headquarters in Hertfordshire, United Kingdom. Performance-related pay has been chosen in this report. Furthermore, this assignment covers an overview of the chosen reward system, its advantages offered to the organisation, and the fulfillment of motivational needs with this reward system. In addition to this, the budget for such a system, impact of internal and external factors for implementation, examples of successful implementation of this reward system, and reason for opting for the same.


  • Overview of performance-related pay- It is a reward system in which financial or monetary benefits are given to employees on the basis of their performance. There is a standard or mark which reflects the expectations of the company from its workforce. If an individual performs the required standard and/or above that, then extra payment in the form of bonuses or incentives is paid (Shields, J., and et. al., 2015). It involves a review of performance on a regular basis followed by categorization of them into groups which helps the company to determine the exact reward to be given to them. There are no major variations in this reward system and considers performance as the sole element to judge the capabilities of a person.

Need to Consult Directly With Our Experts?

Contact Us
  • Advantages- It offers numerous advantages which make performance-related pay a suitable reward system. Some of these are as follows:
  1. Tasks and goals are defined clearly to each and every individual on which they have absolute focus.
  2. It is an effective way of managing the poor performance of employees.
  3. It encourages the staff to give their best performance.
  4. Targets are achieved without any delay which leads to higher profits.
  5. 5. It enhances the focus of the workforce on the goals and objectives.
  • Motivational needs of employees- Motivation is an important element to keep employees working in the organisation with all their efforts. It helps in increasing job satisfaction which leads to lower employee turnover. The main purpose for which a candidate takes up the job is to earn money. Therefore, it can be said salary is what motivates employees to a great extent. When staff is paid additional they work efficiently. Also, it helps in creating an environment that promotes security about the job among the candidates. It is another motivational need. Apart from this, people look for an organisation which judges their capabilities on the basis of their performance. It is useful in developing an impartial atmosphere for existing employees which attracts new potential applicants to apply (Noe, R.A., and et. al., 2017).
  • Disadvantages or risks of performance-related pay- This reward system has disadvantages that should be considered by TESCO before its implementation. These are elaborated underneath:
  1. The managers greatly rely on the quality which can add more pressure to employees.
  2. This reward system makes the staff lose their contribution or interest in teamwork because each of them competes against each other to get higher pay.
  3. There is difficulty in measuring the performance if the the objectives are not completely fulfilled because the amount of incentives cannot be determined.
  4. If the employee perceives the incentive amount low then it can reduce the motivation among them.
  • Budgeting consideration- Every reward system requires a budget in order to provide incentives or bonuses within the time. It is an expense for the company for which the finance team should invest time in preparing the budget. With respect to performance-related pay, there is a major requirement of budgeting. Some of the considerations that should be taken into account are as follows:
  1. The annual increase in wage or salary should be included in preparing the budget.
  2. The tax amount to be given on the amount to be provided as an incentive.
  3. The type of budget is also important to choose. There are two different budgets viz. Fixed and flexible which have their individual characteristics. It should be appropriate according to the requirements of the organisation.
  • Impact of internal or external factors on implementing performance-related pay- There are a number of factors that may influence the implementation. Organisations should have knowledge about such factors in order to reduce the negative impact. The same are as follows:
  1. Economic conditions: There are crises in the economy that should be taken into account for taking into account the efficiency of the operations.
  2. Current wage level: It is directly related to the wage level. It is proportionate to the complete salary that is paid to every individual (Trevor, Reilly and Gerhart, 2012).
  3. Cost of living: It has a direct nexus with the per capita income of the candidate working in the organisation. It is also a major element which should be taken into account.
  • Examples of other organisations which have successfully implemented it- There are many companies which have applied performance review systems within their organisations. Some of these are ARGOS, John Lewis Partnership, NHS etc. These belong to different categories of organisations such as public, NPO, private etc. This means that every entity irrespective of its type can implement this system.

Need Personalised Assistance from Our Experts?

Share Your Requirements via Whatsapp!

Chat Now


This report has shown the brief of the above-mentioned reward system along with the advantages and disadvantages of the same. These are important for making the decision to choose this. Some of the reasons for this system are as follows:

  1. Money is a great way to motivate employees and this system involves financial benefits.
  2. It helps in promoting competition among the working people due to which everyone works with their best efforts.
  3. It is useful for all entities irrespective of size, nature, turnover, etc.

Also read:- Description of My Ideal Job Helps in Making Career Effectively

Stuck with Your Academic Task? Experts Are Here to Help You

Do you feel like you need online assignment help but don't have enough time to do it? Do not be concerned; we have the top essay writers in the UK who can be of great assistance. Our writers will provide high-quality work on schedule and at a fair price. To further reduce the cost of our services and make them more accessible, we provide many discounts for new and recurring clients. In addition, you may get assistance with custom essay writing service.

Additionally, our professionals have access to a wide range of resources so that you will receive a genuinely original piece of work. Our website offers a variety of academic writing services, including dissertation writing Service. We care about your academic performance. Thus we are always delighted to take your orders! So why are you still waiting? Place your order now to receive the top academic writing services in the UK!

Download Full Sample
Cite This Work To export references to this Sample, select the desired referencing style below:
Assignment Desk.(2024) Reward System With The Advantages and Disadvantages Retrieved from:
Copy to Clipboard
Copy to Clipboard
Assignment Desk (2024) Reward System With The Advantages and Disadvantages[Online]. Retrieved from:
Copy to Clipboard
Assignment Desk Reward System With The Advantages and Disadvantages. (Assignment Desk, 2024)
Copy to Clipboard
Assignment Desk Reward System With The Advantages and Disadvantages. [Internet]. Assignment Desk.(2024), Retrieved from:
Copy to Clipboard
Struggling with writing assignments? Take our academic writing services to resolve your problems. We not only provide online assignment help but also various other services like thesis, dissertation, and essay writing services. If you have any doubts about our experts, then we suggest you check our “Samples” before seeking dissertation help from us. Our experts can ease the complexity of your work. All you have to do is ask, “Can you do my assignment?”
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price

    Delivered on-time or your money back

    100+ Qualified Writers

    For Best Human Resource Assignment Help

    View All Writers
    FREE Tools

    To Make Your Work Original

    • tools Paraphrasing Tool

      Check your work against paraphrasing & get a free Plagiarism report!

      Check Paraphrasing
    • tools Plagiarism Checker

      Check your work against plagiarism & get a free Plagiarism report!

      Check Plagiarism
    • tools Dissertation Outline Generator

      Quick and Simple Tool to Generate Dissertation Outline Instantly

      Dissertation Outline Generator
    • tools Grammar Checker Tool

      Make your content free of errors in just a few clicks for free!

      Grammar Checker
    • tools Essay Typer

      Generate plagiarism-free essays as per your topic’s requirement!

      Essay Typer
    • tools Thesis Statement Generator

      Generate a Compelling Thesis Statement and Impress Your Professor

      Try Thesis Generator Tool

    Professional Academic Help at Pocket-Friendly Prices!

    Captcha Code refresh

        Estimated Price

        USD 6.32 25% OFF
        Total Price USD 6
        182532+Delivered Orders 4500+PhD Writers 4.8/5Client Rating

        AD whatsapp

        Limited Time Offer

        Exclusive Library Membership + FREE Wallet Balance