THE IMPACT OF REWARD MANAGEMENT STRATEGIES ON EMPLOYEE PERFORMANCE AT NATIONS TRUST BANK CREDIT DEPARTMENT
Registration No: TPQ 39 / – 25 – 47
PROFESSIONAL QUALIFICATION IN HUMAN RESOURCES MANAGEMENT
INSTITUTE OF PERSONNEL MANAGEMENT SRI LANKA
IPM BUSINESS SCHOOL
COLOMBO, SRI LANKA
Background of the study
Human resource management is a combination of theories and practices. Many strategies and concepts have been generated in various periods to ensure the development of Human resource management in broader way. Nations Trust Bank is a good Human resource management practitioner who has broader ideas and techniques from a wide range of theories and practical ways to influence human behavior at work place.
Nations Trust Bank was established in July 1999 when it acquired the Colombo Branch of Overseas Trust Bank Ltd. Although bank is young to the industry, bank has 40 branches, 9 leasing centers, 43 ATMs, 6 personal banking centers as well as Internet Banking. Most important thing is comparing to the other competitive bank Nations Trust Bank is more customer oriented by providing a tailored service for contemporary lifestyles. This Bank offer a wide range of great value financial products ranging from tailor-made Treasury products, to retail products, from leasing to American Express credit cards. According to the annual report of Nations Trust Bank 2009, the human capital has grown up to 1532, because the prospect of business expansion in Sri Lanka’s North and East.
Human resource department of Nations Trust Bank has to play significant role to give ideal leadership and guidance each and every individuals to perform their job within a wide environmental context, because developing individual performance is improving organizational performance in a systematic way. So it is important to emphasize on performance management system and as well as reward management system since improving and developing performance is a part of reward system in its most general sense.
When reward system is poor the level of performance can be negative, because those two factors have direct influence on each other. Performance management can influence not only capacity of employees to achieve expected level of target, but also it provides the basis for personal development, continuing review of achievement against objective and requirements.
Nations Trust Bank is customer oriented and it is a must to maintain little complaint level when competing with other banks. According to the Herzberg two factor theory if a particular company can maintain high hygiene factors and high motivator factors they are able obtain the ideal situation where employees are highly motivated and have few complaints. So when this research carry out it is very important to talk about the Herzberg two factor theory.
The research strongly focuses on the impact of reward management strategies on employee performance of credit operations department at Nations Trust Bank. According to the employee feedback, research can identify certain areas to be improved and the gap between employees’ expected reward management system and existing reward management system.
As companies tend to spend large amount from yearly budget on performance improvement, there is a need to identify the effort of organization how successfully (positively) impact on employee performance, because ultimately final result will be benefited to the organization
* To identify current level of employee performance and reward management system * To determine the relationship between employee performance and reward management * To propose appropriate strategies to improve employee performance and conduct most suitable reward management system
Reward or compensation management is an aspect of HRM that focuses pay and other benefits on the achievements of...
References: 1. Guimaraes, Brandon and Guimaraes E. R. (2009): ‘Test major factors of performance to bank business’ Journal of performance management. Association of management information in financial services.
2. Lowler III and Worley. (2006): ‘How does reward system work to improve motivation and change of organization’ Center for effective organizations. University of southern California
1. Bokedal and Axelsson. (2009): ‘Are managers motivated by reward system and concerning on generational differences’ A case study of Volvo cars corporation. University of Gothenburg
2. Khan, Farooq and Ullah. (2010): ‘The relationship between rewards and employee motivation in commercial bank of Pakistan’ Research journal of international studies. University of Peshawar
3. Qureshi. (1994): ‘Impact of management practice on employee effectiveness in South Asia’ CMER Working paper series. Lahore University of Management science
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