Relations between Planning Systems and Employee Reward Schemes in Polish Enterprises

A purpose of this paper is to detect relations between planning systems and rewarding schemes in micro-, small-, medium- and large-sized companies. The conducted analysis is based on selected data from a research project focusing on planning, control and communication practices developed by enterprises operating in Poland. The paper reflects information and opinions included in 397 research forms collected in late 2010/2011. The empirical results provided evidence on positive and statistically relevant relationship between character of a goal-setting process and reward strategies. It seems that participative as well as formalized planning, where employees take part in setting objectives or obtain plans with defined goals induces performance-based reward strategies, which are reflected in merit pays or bonuses contingent on individual or corporate performance. Likewise also managerial feedback affects in a positive manner reward strategy. The study suggests that there is statistically relevant difference in reward strategies considering sector affiliation. Financial companies were more likely to compensate employees considering their performance than organizations from the other sectors. The explanation is that almost a half of examined financial organizations reported that they have their goals established by senior management in a form of plan to execute which may imply periodical performance appraisals and performance-based rewards