Reward strategy in a HRM context: Its role in motivating and retaining staff
- Theories of motivation.
- Maslow's hierarchy of needs.
- Alderfer's ERG theory.
- McGregor's Theory X, Theory Y.
- McCelland's Acquired Needs theory.
- Herzberg's dual-factors theory.
- Vroom's Expectancy theory.
- Adam's Equity theory.
- Reward Management.
- Different kinds of rewards tools: Pay, incentives and fringe benefits.
- Design of the reward process.
- Characteristics of a nomination.
- Process of nomination.
- Criticism through case studies.
- Forestry commission.
- Mobile phone O2 and other companies.
“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.
[...] 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. [...]
[...] Thus in this paper, we will approach the topic Reward strategy in a HRM context: its role in motivating and retaining staff. We will concentrate the subject into three different parts: firstly we will develop about motivation, then secondly we will approach the reward management, and thirdly we will criticize reward management thanks to several case studies. Motivation The reasons that make us be interested in motivation in a subject such as Reward Management, is because managers can’t ignore that behaviour influence the way the staff is working is the organisations. [...]