Implementation of Reward and Punishment System as a Management Strategy to Motivate Performance

Abstract

Management strategy is a series of highest-level managerial decisions and actions that encompass the formulation, implementation, and evaluation of an organization's long-term plans. This process aims to achieve competitive advantage, adapt to the business environment, and realize the company's vision and mission through continuous internal and external analysis. Management strategy is a systematic approach to planning, implementing, and evaluating cross-functional decisions that enable an organization to achieve long-term goals, enhance competitive advantage, and adapt to environmental changes. The purpose of this research is to analyze the implementation of reward and punishment system as a management strategy to motivate performance. The analysis uses a qualitative approach, utilizing secondary sources based on applicable theories, such as books, journals, and related sources. The research results indicate that implementing a reward and punishment system as a management strategy to motivate performance is a form of integrated management method. Financial and non-financial rewards are given as a form of recognition for achievement, while sanctions are applied fairly to deter misconduct and encourage self-improvement. The balance between the two creates a productive and accountable work environment.