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Reply to discussion (Module 14: Rewarding through Performance Management)
Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that further and advance the discussion topic.
The reply needs to be substantial and constructive in nature. it should add to the content of the post and evaluate/analyze that post Discussion
Please provide the references you used.
Ensure zero plagiarism.
Word limit: 200 words.
In the competitive and service-driven banking sector, effective reward systems are essential to motivating
employees, enhancing engagement, and aligning performance with organizational goals. Alrajhi Bank,
one of the largest Islamic banks globally and a market leader in Saudi Arabia, integrates performance
management and rewards through both financial and non-financial systems, notably the Alrajhi Mokafaa
program. This system serves both employees and customers, reflecting the bank’s strategic use of
rewards to drive excellence, loyalty, and alignment with institutional values.
Reward systems fall into two broad categories: financial rewards, such as bonuses, salary increases, and
incentives, and non-financial rewards, such as public recognition, growth opportunities, and flexible work
arrangements. Aguinis (2019) stresses that while financial rewards can boost short-term performance,
non-financial rewards are more effective in sustaining long-term motivation and commitment (p. 252).
At Alrajhi Bank, employees benefit from structured performance-based rewards, while customers engage
with the Mokafaa loyalty program, which allows them to accumulate points and redeem them through a
wide range of partners (Alrajhi Bank, Mokafaa). Internally, Mokafaa also recognizes staff excellence,
reinforcing a culture of appreciation and continuous improvement.
For a reward system to be effective, it must reinforce organizational strategy. As Aguinis (2019) explains,
performance management systems that align individual goals with organizational values tend to yield
better business results (p. 258). Alrajhi Bank achieves this by ensuring that employee contributions are
evaluated not only on output but also on adherence to the bank’s core values of trust, innovation, and
customer-centricity.
For example, employees who consistently demonstrate excellence in customer service and innovation
are recognized through both informal recognition and formal channels, which may include additional
points in the Mokafaa system, promotions, or public acknowledgment.
Transparency is crucial in maintaining trust in any reward system. Employees need to understand how
their performance is assessed and how rewards are allocated. Alrajhi Bank promotes transparency by
clearly linking performance outcomes to rewards through structured KPIs and well-communicated
expectations. The Mokafaa platform itself is a transparent ecosystem—employees and customers can
track their points, review transactions, and access rewards (Mokafaa Member Portal).
This visibility not only encourages engagement but also reduces ambiguity and perceptions of favoritism,
which, according to Aguinis (2019), can severely undermine a reward system’s effectiveness (p. 255).
By integrating tools like the Mokafaa rewards program, Alrajhi Bank showcases how strategic reward
systems can serve dual roles: enhancing customer loyalty and driving internal employee performance.
The program enables employees to see real-time recognition and benefits, mirroring the effectiveness of
systems used by high-performing global firms.
Moreover, the bank’s focus on fairness, alignment, and ongoing communication reflects a mature,
modern approach to performance management. This approach supports not just short-term productivity
but long-term retention, motivation, and cultural alignment—especially vital in service-intensive industries
like banking. Alrajhi Bank’s use of the Mokafaa program for both employee recognition and customer
engagement is a compelling example of how financial and non-financial rewards, when aligned with
organizational values and strategy, can reinforce a high-performance culture. By fostering transparency,
encouraging strategic alignment, and supporting continuous recognition, the bank builds a workforce that
is not only high-performing but also deeply connected to its mission and vision.
References
• Aguinis, H. (2019). Performance Management (4th ed.). Chicago Business Press.
• Alrajhi Bank. (n.d.). Mokafaa Loyalty Program. Retrieved
from
• Alrajhi Bank. (n.d.). Mokafaa Offers. Retrieved
from
• Alrajhi Bank. (n.d.). Mokafaa Loyalty Member Portal. Retrieved
from
Reply to discussion (Module 14: Rewarding through Performance
Management)
Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that
further and advance the discussion topic.
The reply needs to be substantial and constructive in nature. it should add to the content of the post and
evaluate/analyze that post Discussion
Please provide the references you used.
Ensure zero plagiarism.
Word limit: 200 words.
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