Design of Performance Evaluation and Fair Reward Systems in Modern Organizations

Authors

  • Didit Darmawan University of Mayjen Sungkono Mojokerto
  • Antonino Pedro Marsal Instituto Boaventura De Timor Leste

Keywords:

performance evaluation, fair reward, human resource management, work motivation, organizational fairness, career development, information technology

Abstract

This research discusses performance evaluation and fair reward systems for employees in modern organizations. Global phenomena show low levels of employee satisfaction with performance management systems, largely due to assessment bias, inconsistencies between evaluation results and rewards, and a lack of connection to career development. This research uses a qualitative literature review approach with a thematic synthesis method, enabling researchers to identify patterns and main themes in the literature. The results of the discussion show that fair performance evaluations must be based on objective indicators, procedural transparency, and managers' skills in providing feedback. The reward system, on the other hand, needs to include financial and non-financial aspects, consider generational diversity, and be adapted to the organization culture. Information technology has been shown to strengthen the objectivity of assessments, while it still raises ethical challenges related to privacy. The integration of evaluation, rewards, and career development is considered the key to success in creating a fair system. The practical implication of this research is the importance of organizations designing adaptive evaluation and reward systems that are aligned with business strategies and oriented towards building fair working relationships. This research is expected to contribute theoretically by enriching the human resource management literature, while also providing practical guidance for organizations in creating a motivated and loyal workforce.

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Published

2021-04-30

How to Cite

Darmawan, D., & Marsal, A. P. (2021). Design of Performance Evaluation and Fair Reward Systems in Modern Organizations. Journal of Science, Technology and Society (SICO), 2(1), 45–52. Retrieved from http://ejournalsico.com/index.php/sico/article/view/68

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