Page 97 - Appreciating Organization's Biggest Assets

of the schools pay much attention basic needs of all employees; rewards
to the strategy of compensation need to be included in the system
management to retain, attract, and and be comparable to ones offered
motivate the employee for better by a competitive organization in
performance. the same area; rewards need to be
1. Pay Structure and Policy - The available to employees in the same
compensation and benefits seem to positions and be provided fairly and
be more competitive; it can help to equitably. Thus, a reward strategy
motivate and retain the employee should enhance commitment and
in the schools. Compensation engagement, and provide more
system can affect the performance opportunities for the contributions
of employees by differentiating of people to be valued and
the types of compensation into recognized. It is necessary that an
three, namely salary, reward, effective reward system needs to
and incentives. It is believed that be managed and practiced in the
pay, reward, and incentive are schools to motivate employee’s
competitive, reasonable, and behavior and performance.
fit to the job level can motivate Armstrong viewed that a reward
employees to perform effectively. strategy is a precision of purpose
However, paying for performance that describes what the organization
is the main issue in contemporary intends to do in the longer term
human resources management, to develop and implement reward
the schools have a high expectation policies, practices, and processes
that productivity improves when that will further the achievement of
pay is fit to performance and pay its goals and meet the needs of the
and incentives must develop to stakeholders. When the principals
support this commitment. It` s use rewards to reinforce employee
necessary that the school needs to behavior that they want to continue
manage compensation and benefits in the school. And the reward is
effectively in order to reward powered when the principal confers
principals, coordinators, teachers, it in return for desired actions and
and operational staff in a competitive outcomes for a positive value to the
labor market and equitable manner employees.
and be based on merit, competence, 3. Incentives Practices - Incentives
responsibility, and accountability. are usually in monetary rewards

2. Reward system and practices - forms or other types of incentive-
An effective reward system has four based compensation which are
elements: rewards need to satisfy the share ownership and additional

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