REWARD SYSTEM AS A STRATEGY TO ENHANCE EMPLOYEES PERFORMANCE INANORGANIZATION

Abstract

Employee performance is a crucial factor that has a direct impact on the success and viability of any organization. Of all the strategic tools employed by management, reward systems have always been effective in increasing employees' motivation levels, job satisfaction, and ultimately, their performance outcomes. This paper explores the function of reward systems—both intrinsic (recognition, career growth, flexible work arrangements) and extrinsic (bonuses, salary increases, incentives)—as a performance improvement tactic in organizational contexts. Using established motivational theories like Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, the research analyzes the psychological and behavioral effects of rewards on employees. Applying a mixed-methods research strategy, data were gathered using structured questionnaires and performance records in various organizational industries. The findings reveal a significant positive relationship between well-designed reward systems and worker productivity, commitment, and retention. In addition, the study outlines best practices for designing fair and goal-focused reward systems that link employee ambitions with organizational goals. This study provides significant insights to human resource practitioners and organizational managers aiming to build a high-performance work culture using proper reward schemes.