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Reward Management

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CHAPTER 1 INTRODUCTION 1.0 Overview
In any organization, employee's rewards usually given to attract, motivate and retain the employees to stay longer and contribute a good quality services to ensure the successful of the organization; in other words, rewards play an important role in creating, building and maintaining the commitment among employees with the purpose to ensure high standard of performances and workforce stability. According to the individual - organizational exchange theme, individuals enter the organization with special qualification and skill, desire and goals, and expect in return a work setting where they can use their skill, satisfy their desire, and achieve their goals (Mottaz, 1988). At the minimum, employees expect their organization to provide fair pay, safe working condition, and fair treatment. (Beer, Spector, Lawrence, Mills, & Walton, 1984). It simply implies that employees offer or increase their commitment when organization meets employees' expectation regarding fulfillment of their important needs. Thus, the exchange perspective explains organizational commitment as a function of work rewards and work values (Lambert, 2000; Mottazz, 1988), and suggests the importance of work rewards for continuously encouraging employees. According to exchange theory and reciprocity norm, employees repay the rewards received from organization through increase commitment to the organization, which reenforce the exchange prevalent in the employee - employer relationship in a mutually beneficial manner (Blau, 1964; Haar and Spell, 2004). In addition, Vroom, V.H (1964) maintained in his expectation theory that everyone works in expectation of some rewards in both spiritual and material. In the other words, the level of reward influences the quality and the quantity of

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