Introduction The human resource function within organisations plays a critical role in planning, organising, directing, as well as determining the reward system. This is an important aspect because it helps in influencing workers’ motivation towards executing their roles (O’Driscoll and Donna 197). This paper analyzes the reward system used in my organisation and offers an elaborate analysis, as well as recommendations on how the challenge can be addressed efficiently. The Challenging HRM Aspect in my Organisation My organisation has the problem of an inefficient non-financial reward system. My organisation’s main HRM challenge lies in the recognition, development and self-actualisation dimension. In particular, the feedback mechanism is inefficient and it is difficult for both the management and the workers to determine their own progress. It equally makes it difficult for the organisation to accurately evaluate the needs of the workers in terms of the needed skills and development. Description of the challenge Workers are never accurately appraised in their respective jobs to determine their areas of strengths or weaknesses. Managers required to undertake the appraisal exercise have limited skills on how to employ the evaluation process. The exercise is not conducted on a regular basis, while the tools used are not efficient. Most supervisors appraise workers on the basis of the personal relations that they have rather than on the actual performance of the individuals. The inefficiency in the appraisal mechanism affects the feedback process of the organisation as the response gives an erroneous account of what the true organisational needs are. Workers who need further training are never selected because their feedback reports indicate that their on-job performances are beyond excellent. These workers are recognised as the best performing and are often recommended for promotion to perform even higher and more demanding roles. On the other hand, some hard working staffs in the organisation who are not in good personal terms with the appraising managers always receive negative feedback reports. Their appraisal is often doctored to depict their performance as poor and requiring more attention from the organisation. These workers never receive any recognition from the organisation, which ends up affecting their motivation and morale. Equity Theory and the HR Challenge in my organisation According to the equity theory, workers often assess their performance as well as attitudes through making comparisons with what their actual contributions to the work and the benefits they derive from it are (Chapman and Clare 121). They make comparisons with the contributions and benefits of references that they select from amongst the colleagues in the same organisation they serve. This determines their level of motivation in the sense that when their colleagues get more benefits yet they deem them to be contributing less in their roles, the workers become less motivated. On the other hand, when they determine that their colleagues have fewer benefits in terms of recognition or other non-financial benefits compared to theirs, they become more motivated especially if their input is also higher than that of the colleagues. In my organisation, most workers have become demotivated because of what they are considering as an inefficient feedback mechani