Designing managers rewarding paradigm based on balanced score card model

Abstract

In today’s competitive market, the organizations’ need to maintain their professional human resources is clearly understood. Declaration of rewarding strategies is one way to reach this goal. Reward is defined as the positive outcome of individuals’ jobs. It is the presentation of a pleasant outcome for the performance of the desired behavior by the individual in order to increase the repetition probability. There are generally two types of rewards, that is, internal reward and external reward. This study aims at designing the managers rewarding system based on balanced score card (BSC) model, so that the effectiveness of the reward given to the managers while evaluating the organization’s performance can be measured with both financial and non-financial criteria. The statistical society of this study consists of all the managers of Khorasan-e-Razavi Province’s industry. The method of data collection includes the review of the documents, interviews (if needed) and questionnaire and descriptive- field research method is used. Because of this, at the first step, the effective parameters on managers’ rewards were identified by surveying them and then path analysis method was used to design the model. In this study, six types of organizational rewards were determined in relation to four dimensions of BSC and the effect of each of the different types of reward standards on BSC dimensions was determined after path analysis determination. Results strongly supports author’s proposed model. Key words: Balanced score card (BSC), internal rewards, external rewards.