Abstract

Whilst few would dispute the motivational power of recognising exceptional performance in the workplace, it is unusual for texts on reward management to feature a chapter focusing solely on employee recognition schemes, separate from the related constructs of non-financial reward and total reward. There exists a sense of ambiguity around the concept of employee recognition – its meaning, constitution and role – which is reflected in the lack of scholarly research or theory development in this area, compared to other components of the reward system.

This chapter is intended to extend thinking and practice around employee recognition and its management through detailed and focused consideration of its distinctive characteristics and role within contemporary organisations. In so doing, the chapter aims to stimulate empirical research into this increasingly widespread but under-explored area of reward management. Research which shows the effects of recognition on employees’ engagement and well-being, motivation and performance is balanced against evidence that employee recognition may have unintended dysfunctional consequences. Whilst acknowledging the traditional theoretical foundation of needs-based motivation and reinforcement theory, there is a consideration of social exchange theory as an alternative lens through which to view the effects of recognition on individuals and organisations. The chapter concludes by offering practical advice on the effective design and management of programmes for recognising employee performance.