Employees tries to perform better when they gain something out of their own performance. That will even motivate them to perform better in the future. Reward System in Human Resource Management is a program or scheme which provides incentives for those individuals or groups who perform well in the organization. This reward system in actual motivates employees to perform well by attracting with well designed incentive packages. These incentives can be monetory or non-monetory.
Most researches on reward system in human resource management reveals that the common driving principle in an individual’s performance is people do that which rewards them for doing that. Organizations need to integrate all the theories made through different researches and prepare a well motivational framework by focusing in key areas of responsibilities and performance encouragement.