Rewards And Work Morale In Organizations

REWARDS AND WORK MORALE IN ORGANIZATIONS A. Definition of Rewards In the large Indonesian dictionary, reward has two meanings, namely gift (as a reward for services) and punishment or recompense. Meanwhile in Arabic "reward is termed tsawab, the word tsawab means reward, wages and recompense. Meanwhile, in a broader discussion, the term reward can be interpreted as a tool or something that can be used as motivation or encouragement for someone to be able to do more or it can also be interpreted as a punishment or warning to someone who makes a mistake so that they can work better in the future. Michael Armstrong (2009;739) (in Triatna, 2015, p. 97) states that: “A reward system consists of a number of interrelated processes and activities which combine to ensure that reward management is carried out effectively to the benefit of the benefits of the organization and the people who work there” Armstrong briefly explained that the reward system consists of a number of processes and activities that are interrelated to ensure that management runs effectively with the benefit of the organization and the people who work there. Meanwhile, the online Cambridge Dictionary provides the definition as written in the book Organizational Behavior by Cepi Triatna as follows: “something given in exchange for good behavior or good work, etc; an amount of money given to someone who helps the police or who helps to return stolen property to its owner.” Which means something given as a reward for good work behavior; an amount of money given to someone who helps the police to return stolen goods to their owners. Based on the definitions above, we can conclude that reward can have two meanings, one as a reward or prize given to someone for their success and hard work, two as a kind of punishment or warning to someone who has committed a violation to improve their performance so that it is better in the future. which will come. B. Factors that Influence the Amount of Rewards In the book Organizational Behavior in Education by Cepi Triatna, several factors that influence the size of rewards are explained, namely: 1. Supply and demand for labor This applies the theory of the law of demand, the more job seekers there are than job vacancies, the relatively lower the salary. On the other hand, if there are more job vacancies than job seekers, the salary you will receive is relatively large. 2. Company capabilities and willingness If the company's ability and willingness to pay is better, the level of reward will be greater. Conversely, if the company's ability and willingness to pay decreases, the level of reward will also become smaller. 3. Employee organization If the organization is large and influential, the greater the rewards it will receive. On the other hand, if the organization is still small and not yet influential, the rewards received are relatively small. 4. Employee work productivity The better and better an employee's work or productivity, the greater it will be 5. The government with its presidential decree The government, by law and presidential decree, sets the minimum service wage limit or UMR. This decision was given so that the companies where people work do not provide arbitrary compensation. In the book Organizational Behavior by M. Taufiq Amir, the practice of giving rewards is divided by experts into four groups (McShane et al., 2013), namely: 1. Membership-Based and Seniority-Based-Reward This practice is usually the most common in many organizations. This reward system is the system most preferred by members who have worked for a long time at the company, but this system does not motivate the performance of workers because those who have poor performance can 'hide' because of this policy. 2. Job Status-Based Rewards This reward system is based on where work depends on the status or value of the work done. This job value is usually obtained through a job evaluation. However, this system often receives emphasis on issues of fairness or justice in its provision. Because this system is easily influenced by the external environment. 3. Competency Based Reward This system is based on competency (competency based reward - CBS), which is a development of a form of reward that only relies on employment status and length of service. One of the more specific forms of competency-based rewards is skill-based pay, that is, people who have high skills or expertise will usually be paid handsomely or higher than others (Dierdoff & Surface, 2008) (in Taufiq Amir, 2017 , p. 92). C. Purpose of Reward In the book Organizational Behavior in Education by Cepi Triatna, the objectives of giving rewards are explained as follows: 1. Collaborative ties By providing rewards, a formal cooperative bond is established between the employer and employee. Employees must carry out their duties according to their responsibilities well, and the employer or leader provides rewards or rewards in accordance with the agreed results of the members' work. 2. Job satisfaction With these rewards or work rewards, employees can fulfill their physical, social status and egoistic needs so as to obtain job satisfaction from their position. 3. Effective procurement If the company provides a reward program for its employees, producing quality and effective employees will be easier 4. Motivation With this reward system, it will be easier for leaders to motivate their members to work better. 5. Employee stability With this reward system which is accompanied by the principles of fairness and justice and competitive external consistency, employee stability is more guaranteed because the company's setbacks are relatively small. 6. Discipline Members or employees will be more disciplined with this reward system. They will better comply with existing rules in the company. 7. Influence of labor unions With this reward system, the influence of workers will be avoided and employees will be more focused on their work so that the company will be more advanced. 8. Government influence If this reward system program complies with established laws, it will reduce government intervention in company regulations. D. Relationship between rewards and performance Rewards or remuneration programs are generally aimed at the interests of the company and the people who work in it. Rewards in an organization must be able to answer the question of what motivates someone to work and why there are people who work hard while there are also people who work mediocre. Meanwhile, quoted from the book Organizational Behavior by M. Taufiq Amir, it explains that performance-based rewards are divided into five systems. These are Individual Rewards, Team Rewards which are made in the form of gainsharing plans, and finally Organizational Rewards which are made in the form of Profit-Sharing Plans.