Reward strategy in a HRM context: Its role in motivating and retaining staff

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Reward strategy in a HRM context: Its role in motivating and retaining staff

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Abstract

"Human Resource Management (HRM) is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce." (Cameron & Quinn, 1999). HRM is part of an organization which recruits and trains workforce in order to achieve the company's objectives. One of the main principles of HRM is based on the assumption that employees are individuals with different goals, wants and needs. Therefore HRM deals with relationships between management and workers and the recommended behaviour of workers in companies achieving objectives. Becker and Gerhart (1996) suggest that the human resource system can be a unique source of competitive advantage, especially when its components have a high degree of internal and external fit. Human Resource Management has for goal to help a company to meet strategic objectives by attracting, managing, maintaining people and human capital and culture for business success.

Introduction.
Motivation.
1. Definition.
2. Theories of motivation.
3. Maslow's hierarchy of needs.
4. Alderfer's ERG theory.
5. McGregor's Theory X, Theory Y.
6. McCelland's Acquired Needs theory.
7. Herzberg's dual-factors theory.
8. Vroom's Expectancy theory.
9. Adam's Equity theory.
Reward Management.
1. Definition.
2. Different kinds of rewards tools: Pay, incentives and fringe benefits.
3. Design of the reward process.
4. Characteristics of a nomination.
5. Process of nomination.
Criticism through case studies.
1. Forestry commission.
2. Norlife.
3. Mobile phone O2 and other companies.
Conclusion.
Bibliography.
Appendix.

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[...] Incentives Incentives in a reward management motivate the employee for surpassing normal performance expectations. The company also operates two separate incentive packages which have led to the rewards being more variable. The first is an annual award, arising from a of determined by the overall organisational performance. The second payment, based on the same criteria as for the annual award, is in stock options and has a more limited application but with the clear intention of increasing the employees' commitment to the organisation. [...]

[...] d.Other companies Glaxo-Wellcome as a world leader in pharmaceutical research and knowing that long-term investment is the only alternative for survival at the top, has a reward strategy of paying salaries at the upper quartile level to attract, develop, motivate and retain quality research staff. Dow Chemicals has a strategy to provide compensation that is responsive to, and reflective of, the quality of performance of both employees and the business (O'Neill, 1995). Abbey National has used a reward strategy to move from a centralised bureaucratic structure to one that is decentralised with empowered operational units. [...]

[...] Although the needs described in this pyramid are about life in general, they don't highlight the real wants and needs that can create workplace. However some think that the Maslow's theory doesn't consider the fact that individuals can have completely separate needs. o Alderfer's ERG theory In the contrary to Maslow's theory, Alderfer considers that needs are not classified and don't have to be accomplished one after another one, but they are simultaneous. ERG Theory recognises three different categories that are Existence Needs, Relatedness needs and Growth needs. [...]

[...] Basically Reward strategy considered that a good employee is a happy and satisfied person, thus the aim of HRM is to find the best way to reward the employee through pay equity, incentives or benefits. Reward Strategy increase employees' commitment mainly because they feel they are part of the organization which recognizes them and their work. Nowadays companies must set up a solid Reward Strategy in order to meet their business objectives. Bibliography Books: Cameron, Kim S. & Quinn, Robert E. [...]

[...] (Lawler and Jenkins, 1994; Waldman, 1994) A successful reward management is based on how the organization will meet the employee's motivation in order to achieve the company's objectives. The HRM has the aim to maintain this balance between the two. This goes through the employee's satisfaction and dissatisfaction with pay, incentives and benefits. These are important factors to take into account in order to manage the company's reward strategy. a.Definition reward system should be aligned to motivate employee performance that is consistent with the firm's strategy, attract and retain people with the knowledge, skills and abilities required to realize the firm's strategic goals, and create a supportive culture and structure.” (Galbraith, 1973; Kilmann, 1989; Nadler and Tushman, 1988) Reward management is a developed system where a company rewards financially or non-financially the work done by the employees. [...]

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