Human resources assignment essay: Rewards at Workplace
1.Introduction
Rewards are defined as methods to gratify the employee’s with extrinsic or the intrinsic factors. It is considered as one of the best method to motivate the employees so that productivity can be increased at workplace (Demand Media, Inc 2012). It is one of the tools used by Human Resource Management at Workplace. The extrinsic rewards are such as bonuses, gifts and increment in pay and intrinsic rewards are such as recognition, promotions and responsibility. It is related with employees because it provided satisfaction and removes the dissatisfaction level. Fredrick Herzberg has explained the two factors such as Hygiene and motivating factors which are related with extrinsic and intrinsic factors. Some of the issues related are rewards at the workplace can either make or break the performance level of the employees in the organization because it will create positive or the negative impacts in the minds of the employees. If the rewards are not being received by the employees for their superior performance then in such can the expectations of the employees from the employer side will fall down. Rewards are not being provided at workplace if the organization is not growing in financial terms and cost is incurred more as compared to the profits. It creates biasness among the employees and productivity gets hampered. Sometime the employees are also not being satisfied with the types of rewards being received by them. They leave the job as soon as they receive the rewards below their expectation levels. The American Shoe Corporation is a family owned business and it has been manufacturing shoes for the consumers. The organization has been facing the problems due to international competitors who have been outsourcing and producing the products at lower cost. At the end of financial year results were declared by the management and many of the employees had to lose their jobs and some employees were gratified. Some of the employee’s expectations were being met and some were failed.
2.The Motives of Company Owner to reward the employee’s in Such Way
According to the American Shoe Corporation (ASC) management might have been framing the rewards at workplace in such way to make it fair and transparent. It is a direct process to motivate the employees and will be also linked with the salary related portfolio. Employees are imparted training programs which are also a form of reward being presented by the management at workplaces. Some of the employees at workplace want to perform their best so that they receive bonus which will provide them happiness. The performance of the employees will increase as the pay increase at the workplace. The management wanted to contribute the employees whose families had contributed to ASC in the past. It was a process to maintain the connectivity and commitment in a psychological manner. Rewards are also a method used by ASC for rewarding the employees so that they employees can achieve the organizational goals. The commitment based model of ASC helps the employees to perform their best. The systematic performance management and the Appraisal system help’s the HR department to link it with the employees reward systems. The complaints of the employee’s also affect the management for to take decisions regarding giving rewards to their employees. The reward system at ASC is based on the value being created by their employees their workplace (Beardwell, I. and Holden, L. and Claydon, T 2004). This process helped ASC to grow its business globally and also remove the dissatisfaction level of the employees. It also provided a way to create a competitive edge over the other competitors.
3.Effect of decision on the Behavior of the STAFF
The employees of ASC were impacted by the management decisions in such manner. As per the employees of ASC the personal values, cognitive limitations and the internal politics of the organizations affected the reward system of ASC. According to (Prucell & Boxall 2000), if rewards system is not appropriate then in such case the employers face the problem of Labor scarcity and have to incur the cost for all time recruitment process. The rewards being provided by the management of ASC to a particular employee should be equitable and must be justified by the management among all the employees. The employees of ASC has been stating that the unfair rewards which are not provided by their company’s management might result at higher level of absenteeism at workplace, turnover, productivity might be hampered and cost of the organization can increase more. The manufacturing companies such as footwear and clothing has been shifting to the low cost manufacturing areas where the appropriate and transparent rewards system might not be followed by the management. The rewards are also being decided by the management after analyzing the business environment stability. The viability of business of an organization matters a lot because the rewards to the employees can be provided when the profits or the goals of an organization are achieved effectively and efficiently (Peter Boxall, John Prucell & Patrick Wright 2007). For an example, A study done on the hotel of Auckland states that it has all the superior facilities but the intangible aspects such as were used to balance the services because the managers gave their best with the superior performance which was linked with the investment done by management in the rewards system of the employees. The better performance appraisal system was being use by the Organization to develop a competitive strategy (Fryer & Haynes 2000). According to Beer some organizations offer rewards such as to the employees for achieving the organizational short term goals. It entirely depends upon the management to see how to motivate their existing employees at workplaces.
4. Improvement in the benefits packages rather than in form of Loyalty Reward
The same effects on the employee’s behavior might not have been achieved by giving the same overall amount paid as an increase in the base pay over the next three years or as in improvements in the benefits packages rather than in form of loyalty rewards because it will not differentiate the top and the poor performers. The behavior of all the employees differs from each other. It is said that more the employees expects more they are dissatisfied when their expectations fails they perform poorly. The loyalty rewards will stretch the performance level of the employees and they will be encouraged to contribute more. It will motivate the employees internally because they will be recognized and appreciated for their performance. The increase in base will not motivate because it is the right of the employees to be paid for their work. It has been said that the top performers also sometimes leave the organization after receiving the loyalty rewards.
5. Negative Consequences that might follow from this Act
The negative consequences that might follow from this Act are rewards cannot motivate always, it sometimes act as punishment because employees go out of the way to perform their best by being unethical. The expectations of the employees are set to be very high and they get highly disappointed when it fails. It has been observed that it reduces the flexibility and the cooperation of the employees in an organization. It ignores the reasons of the negative behavior and also avoids the management and the employees for taking the risks. The interest levels of the employees are being reduced and also the productivity of organization gets hampered.
6. The circumstance where the Discretionary rewards used for Positive Effect
According to (Thompson and Milsome 2001) they have researched that in UK new types of rewards systems such as team pays are being identified. Different approaches are being use by the HR managers to motivate the employees at workplace. The survey of IPD states that around 24% of companies use the team based reward system. It being used because the members are being chosen in a team from the diverse cultural backgrounds and the goals of an organization are being achieved in a better manner. It is also being used because to promote sharing, cooperation of the skills and knowledge. According to (Tower Watson 2010) the survey done in Europe it highlights some of the advantages of team based reward systems such as it communicates the business goals clearly, increase the productivity, promotes team spirit, improves quality, replace the old merit based systems and reduces the costs. The team based reward system will help in positive reinforcement and help in self management of the employees. There are several disadvantages of Team based reward system because team members might not contribute equally, the targets can fail if any of the members do not perform well, and changes cannot be implemented easily, and higher performers are being pressurized to give their best. In an era of Globalization effectiveness of an organization matters a lot and the signals of rewards will help to complete the work efficiently. Sometimes the employees have to face the problems because the managers have to reduce the base pay for balancing the monetary rewards. The clear and larger methods of incentives are methods of reward system. Even the hard and soft HRM aspects have been linked with the reward systems at the workplace. The team bonus or the incentives is not provided to the unsatisfactory or the poor performer in a team. It has been stated that rewards are being focused for providing more achievements and celebrating the success. It becomes a de-motivating situation when rewards based schemes are there at workplace and employees lack at their confidence level for performing their best. According to (Gilmore, S. and Williams, S. 2009) employee’s motivation is a key driver to ensure success in an organization. Companies like Apple have been giving incentives to foster the innovations and increase the creative thinking (ACAS 2012). The management of the employees is important with the help of the appropriate reward system at the workplace because it ensures flexibility, increases performance level, and develop a proper talent pool to compete in the market. The rewards at the workplaces help to explain the behaviors of the employees, their engagement levels and the productivity of the employees (The charter Institute of Marketing 2008).
Conclusion
Though ASC tried to identify the poor and the best performers with the help of their own rewards system to link their organizational goals and value to the performance of the employees in a transparent manner (HSE n.d). It sometimes harms the organization when the employees do not perform after receiving the rewards in the initial stage. The employees who perform and they reflect in their job should be rewarded at the workplaces. The reward system in an organization will help in reviewing the pay structure, help in auditing, develop the required competencies of the employees, helps in appraisal, and etc. The reward structure completely depends upon the business strategies that will help to scan the other competitors reward strategy. The top performers of an organization have zeal to perform well with the reward systems of the organizations (TUC 2012). The employees cannot be motivated everytime with the monetary benefits. Employees also require the recognitions and the loyalty rewards to get motivated for their job. The basic pay should not be increased always because the employees cannot stretch their performance level and they are unable to achieve the short term objectives. Management need to maintain the balance between how to the rewards the employees at workplace by being fair and transparent so that the employees performance can contribute towards the growth and success of the organization.
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