How To Make A Reward System More Effective

A manager reward system should aim to attract the most qualified managers and to motivate them individually and collectively to become more efficient and effective. A good reward system must therefore have the following:

•    Must consider the system in its entirety

The firm should be looked at as a system that is interrelated so besides the money there should be good leadership, appreciation, respect and growth.

•    Rewards should be related to performanceManagers must not be made to feel exploited, good performers must be compensated better than low performers.

•    The reward system must be reviewed and amended frequentlyIt may be adjusted to reflect changes either in the firm or on the part of the manager e.g. increased responsibilities, rise in cost of living, development of skills etc.

•    It must be fair and simpleIts reward system should be as objective as possible. It should be also simple and not costly to administer.

Evaluation of Managers Performance

Managers are the key to a firms success.Their strengths and weaknesses must be discovered and used to build a better organization.Evaluation of managers serves as a basis for corrective action.

The successful manager needs to be encouraged to remain that way while the unsuccessful one needs to be helped to improve his performance.