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Preliminary communication

CONNECTION OF MOTIVATION AND EMPLOYEE REWARDING SYSTEM WITH SUCCESSFUL PERFORMANCE OF HUMAN RESOURCES IN SMALL AND MEDIUM-SIZED ENTERPRISES

Josipa Tafra ; University College of Economics, Entrepreneurship and Management Nikola Subic Zrinski, Zagreb, Croatia
Petra Graovac ; University College of Economics, Entrepreneurship and Management Nikola Subic Zrinski, Zagreb, Croatia
Gabrijela Budimir Šoško ; University College of Economics, Entrepreneurship and Management Nikola Subic Zrinski, Zagreb, Croatia


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Abstract

Effective human resources management is one of the key success factors of each company. Human resources management includes a series of interconnected activities and task management aimed at ensuring an adequate number and structure of employees, their knowledge, skills, interests, motivations and behaviors needed to achieve current, developmental and strategic business objectives. Emphasis of this paper is put on the element of motivation which is an important trigger that directs, maintains and challenges employees for the purpose of desired and acceptable behavior within the company. The correct selection and motivation of employees represents competitive advantage of successful companies. A positive correlation was found between employee motivation, reward system and the performance of human resource management in small and medium-sized enterprises. Secondary data was used as well as method of abstraction, analysis and comparison, within the framework of Maslow's hierarchy of needs, Herzberger’s theory of motivation, McClelland's motivational needs theory and Vroom’s expectancy theory. Since the existence of insufficient awareness of research problem within small and medium-sized enterprises was established, the goal of this paper is directed toward pointing out the importance of motivation and reward system within the company as a significant factor that affects the performance of human resources management and positioning of companies with particular emphasis on small and medium-sized enterprises.

Keywords

motivation; reward; theory; human resources management; employees

Hrčak ID:

183415

URI

https://hrcak.srce.hr/183415

Publication date:

26.6.2017.

Article data in other languages: croatian

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