An employee with higher quality and motivation can create more value for customer to bring a higher level of customer satisfaction, and then can expand the market for the company, so the employee value has a depth impact to company and customer. Therefore it is very important for a company to intensify the creating of employee value by motivating, management and reward. The reward is one of the important factor. Therefore, The manager have to consider how to handle those reward effectively, so that they can use the limited resource as much as possible. Now a day, all the practice indicate that the decision and management of the reward is important problem that company need to deeply consider.
When rewards is meaningful to employees and influence their affiliation with the organization, the employee value can be created. Compensation and rewards management is extremely important to every employee.
So what is a reward? Reward is pay back that people can get by doing a paid labor. For those employees of a company, there has a total employment rewards which is an integrated package of all rewards gained by employees arising from their employment.
Reward can be divided based on the monetary and non-monetary. The monetary (extrinsic) is a compensation with cash payments or benefits. And a non-monetary (intrinsic) maybe the personal growth or interpersonal rewards.
The changing and development of reward
Through the forming and development of business organization, the reward always play an important role to support the operation of organization.
1. The arising of average wage
We all know that a company is a group of employees and related person organized by the investor to work for a common goal. At the beginning the employers produced and sell the goods by themselves such as the blacksmith, dressmaker and shoemaker. As the business is getting better and better, the employers cannot handled so much thing by themselves. And then the employers started to hire some employees to help of the business.
The employer will made the marketing decision and got the order. The production process of all the staffs were arranged and under supervised by the employer. Every staff contacted to the consumers directly and provided the direct service, so they could get the consumer feedback easily. However, because lacked of consideration to the production of employees, most of the employer provided the same average wages to the employees as a reward.
2. The appearing of difference for the salary
The number of employees in the organization increased constantly and then the amount of staffs became so large that the employer was hard to management. At this time, the employer selected one or several staff to help them to arrange and to guide the operation, and to supervise the performance of the other employees. To improve the motivation of the selected staff to arrange work and to guide the workers, the employer given them more wages as a reward based on the average wages. In this way, the different for the salary appeared.
3. The hierarchy of wage
With the improvement of the social developing, people began to division of labor. At the same time, the enterprise organization start a larger-scale development, so the amount of staff who help employer to arrange job, to guide and to supervise the job of employees became huge. Then the manager, a new higher level of hierarchy, come into being. This change will carry on until the different level arise in the manager: the director, the manager, the managing director and so on. The hierarchy of enterprise organization appeared.
The effectiveness for the division of labor simplifying the work of the staff and reduced the require ability of staff which made the company could produce a larger number of product. Because of the need for the consumer is larger than the supply for the productor, the time which the consumer will purchase what the enterprise produced is arise.
Therefore, in the company the
acknowledging the significance of modern reward management methods and how beneficial it is for the company’s interests. Armstrong and Murlis (2007) defined reward strategy as ‘the direction in which reward management innovations and developments should go to support the business strategy, how it should be integrated, the priority that should be given to initiatives and the pace at which they should be implemented’. CIPD’s (2012) 11th annual survey report states that two-thirds out of 455 organizations…
are secured. As discussed before, organisation tried to satisfy the needs of talented staff to make them feel they are being looked after well and they are important for organisations. CBA found that the financial reward mechanisms is not only way to retain the talented staff. The reward system only delivers short-term outcomes. Therefore, CBA tried to establish a good working environment in which talented staff will select to join the bank and then decide to remain. The CBA also recommend staff that…
Introduction This report will aim to demonstrate knowledge and understanding of what performance management is and its purpose. Key elements will be outlined for an effective appraisal and reward system and show how this links to business objectives. What is Performance Management? Performance management is, “A process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance”. (CIPD, 2009) As explained by (Team…
to further the development and existence of the organization. Compensation is flexible that could be changed according to the company’s operating status, business goals, needs, and available funding resources. Compensation could be a tool that to reward the employee who with exceptional performance of job, such as cash, stock, commissions, bonuses and sharing of profit. So the management of compensation is important for both employees and the organization, employee’s performance would affect by the…
business because it manages the company’s workforce by insuring that workers and being motivated and kept at a level of productivity that a business sees as expectable. Similarly in this unit I will also be looking into the reward scheme that different business use to reward workers. Human resource management in this unit will also let me look into the different aspects that businesses use when trying to get a worker in tuned to the company’s current and future goal and developments e.g. Workers…
management covering areas are different between personnel management and HRM, roles of the human resource manager, Human resource planning process, job evaluation and performance evaluation, recruitment and selection procedure, selection technique, reward management system, exit strategies and redundancy. This assignment gives some kind of knowledge about excellent theories of Human resource management. 2. Task One 2.1 Explain the traditional view of Personnel Management and the new approach…
HRM PROJECT Table of Contents Executive Summary LO 1 Understand the difference between personnel management and human resources management 1.1 Distinguish between Personnel management and human resource management…………………………………………………………………………………………….. 1.2 Assess the function of the human resource management in contributing to organizational purposes 1.3 Evaluate the role and responsibilities of line managers in human resource management…………………………………………………………………………………… 1.4 Analyse the impact…
impact on profitability and if the business doesn't do anything it will lead to cessation. Current economic environment Economic environment is the totality of economic factors, such as employment, income, inflation and interest rates that influence the buying behaviour of consumers and institutions. employment The unemployment rate of Australia increased 6.0 per cent in January 2014, unemployment occur when there's a downturn in aggregate demand. Therefore businesses will cut jobs to save and…
Recruitment Guide for Store Associates at Tanglewood Stores Position: Store Associate Reports to: Store Managers Qualifications: Experience in retail is desired Relevant Labor Market: Western and Eastern Washington, Northern and Southern Oregon Timeline: Ongoing Activities to undertake to source well-qualified candidates: Regional newspaper, radio, and television advertising Request employee referrals Set up employment kiosk in all stores Contact state job services and staffing agencies (StoreStaff)…
managing, try to introduce competitive atmosphere, point out Failed in servicing, they are suppose to help you through the project, emulating private sectors, act as an entrepreneur, Reward performance, good to identify written standard system, set them for improvement, advancement, give incentives/recognition, reward productivity, take other element in consideration Plumptre suggests three considerations for measuring good management 1. How is the work being done? This is the process of procedural…