Effects of Reward System on Motivation of Employees in Small andMedium Enterprises (sme) in Federation of Bosnia and Herzegovina (doi: 10.14706/icesos172)

Abstract: In this project, we will research impact of rewards on motivation of employees. Outcome of the organization is profoundly dependable on the achievement of their workers. Aim of this paper is to show how rewards impact motivation keeping in mind the goal to improve the general performance of the organization. It is crucial for the organization to comprehend what drive the employees and how to expand their employment fulfillment. It may however be hard for an organization to discover what motivates employees, particularly on the grounds that distinctive individuals are motivated by various things. Well composed and useful reward system is an effective approach to build employee work motivation. This paper embarks to investigate obviously what factors exist in ascribing the right reward structure to an individual representative or group. Reward management is both perplexing and involved and exceptionally exposed to outside impacts, for example, financial situations, culture and individual worker inclinations and recognition. Keywords: motivation, employee motivation, reward system, employee satisfaction. JEL Classification: M5, J28.