'Development and Reward System\r'

'Organizations today realize that employees argon dissolve of their competitive advant get ons. Along with effective business strategies and ample capital, investments for developing super skilled human resources constitute been part of more or less companies’ road towards victor. In run to obtain this unique competitive advantage, establishmental instruction must be fitting to charge equal motivation to their employees (Creech, 1995).One of the considered approaches of instruction in motivating their employees is through and through issue transcription. Primarily, the goal of this opus is to reserve an summary of the aims of organisation in setting honor corpse. In addition, this forget also provide discussions of some of the trends in reenforcement practice and the emerging polices that affect employee rejoins.Aims of ecesis for Setting Reward SystemIn Human choice Management, the employee reward policy is intended to align employees with organizatio nal dodge by providing incentives for employees to act in the unwaverings interest and effect well over term. Expectancy theory carries a clear message that employees must feel cocksure(p) that their effort will affect the rewards they receive. Perceptions of equity atomic number 18 therefore crucial in an employees decision to inhabit and produce valu sufficient work.Equity is a multidimensional construct, encompass external equity (the peak to which a smashed corrects employees the rate they would find in the external advertize market), internal equity (the degree to which a firm differentiates remuneration between employees on the instauration of motion in similar undertakings), and individual equity (the degree to which employees argon rewarded proportionately to their individual motion) (Dean and Snell, 1993).Because of the changing demands of mathematical process on employees in high- velocity companies, perceptions of equity in its three forms may perplex c onfused, as conjecture roles and job interdependence become more varied and flexible. Since employees would expect that as their job changes, so will their rewards, designing reward systems in high-velocity environments presents a major challenge to organizations. In high-velocity environments, a premium is placed on individuals who be able to operate in ambiguous circumstances and who are able to take advantage of loose job descriptions provided by their employers.Organizations in high-velocity environments are unbidden to net profit proportionally higher salaries to individuals who prolong such(prenominal) skills. We would expect, therefore, that emphasis on individually equitable rewards as a means of recruiting and retaining highly capable employees would be required (Gomez-Mejia and Welbourne 1990; Snell and Dean 1992).Employee Rewards Policy amended by the Human Resource Management rotter be classified under three broad headings: military operation-detail rewards, whic h explicitly reward through action outputs; job-contingent rewards, where pay is contingent on job miscellany; and person-contingent rewards, in which pay is dependent on the competencies a person has (Dean & Snell, 1993). Because both output orientation and job  classification may be difficult to measure accurately in high-velocity conditions, the prospect of person-contingent rewards, which may kick upstairs the values of learning, flexibility, and creativity, would shapem to be outflank desirable to fast-changing conditions.In addition, Employee Reward Policy bed be i of the greatest foundations of control acquirable to a association in its quest to increase organizational performance and effectiveness, yet remain one of the roughly underutilized and potentially complex tools for driving organizational performance. The importance and complexity of linking reward strategies to business goals in a dogmatic behavior has been a recurrent argument in the study in this field, as has the importance and encumbrance of linking rewards to the longer-term view (Hambrick & Snow, 1989). In describing the strongest level of gene linkage the emphasis has been placed on Lawlers (1990) description of reward processes which are capable of reinforcing the behaviours crucial to business schema like long-term versus short-term, customer focus versus fiscal results.Statement EvaluationPeople do work for money, but they work in time more for meaning in their lives. In accompaniment they work to confuse fun. This statement can be evaluated using the physiological unavoidably of people. Human beings have needs which can be classified as physiological, safety and security, social, esteem and status, and self-actualization. This means that although employees work because they pauperism to ear incomes, there are still needs that should be fulfilled to ensure their contentment and pleasure in what they are doing. If any of the needs is unmet, or unsa tisfied a person, the individual can be motivated if provided with an opportunity to satisfy the unmet need or needs. The most motivating opportunities are the most valued. The most valued opportunities are those designed to provide triumph of the most intense unmet needs. What needs are most intense varies from individual to individual. One persons most paramount need may be the need to be happy (Romzek, 1989).In order to motivate and encourage the workers and employees to state their performances and to help them enjoy more of what they are doing, the employers should are giving recognition to those employees whose works is exemplary or that employee who has contributes to outstanding skills and accomplishments of the mission and objectives of an organization as a whole.  Rewards and recognition go a long direction to keeping employees motivated, satisfied, and committed. Management should recognize employees for both their surface toward and achievement of desired perfor mance goals. It should show appreciation for small accomplishment as well as big ones.The recognition must be ongoing to reinforce employees need to feel that theyre doing a true job.  Moreover, the best forms of recognition typically have diminished or no cost (Nelson, 1998). The statement estimable justifies the saying that people become more commit to work when they feel that their environment likes them and appreciate the things they are doing.According to Skinner (1953), the reinforcement theory suggests the behaviors of the employees directly impact the outcome of their work or their performance. Thus, an employee with a confirming behavior will bring about impinge onicial outcomes, whereas those with negative behaviors will lead to negative results. Thus, the positive behaviors of the employees should then be reinforced by their managers so as to generate more positive outcomes.Trends in Reward PracticeBeing able to recognise the needs for highly motivated individ uals, human resource management has been able to develop different ways in recognize their employees. The trends in reward practice include the broadbanding and performance-related pay and competency based pay or skill-based pay. This paper will focus on the broadbanding and performance-related pay. Broadbanding is a manner of reducing the number of narrow grades in a certain pay structure into a smaller number of broader bands. This reward practice is based on the view that narrow rates cannot reward employees who have reached their range maximum but who are still playing effective. The main goal of this reward practice is to provide greater flexibility to reward the acquisition of wider skills as well as competencies without need to promote the employees in each case or situation (Payment Practices, 2008).On the some other(a) hand, the performance-related pay is a common term for dissimilar approaches to warding or rewarding discretionary payments to employees on the basis of their contribution to the company. Among this common approach include the pay awards for successful meeting work objectives or for present work-related competences or the integration of the two.  it can be say that each of this reward practice can be helpful for motivating and retaining skilful employees (DeWitt & Hamel, 2002).For rewards to be valued, the human resource management must see to it that the Employee Reward Policy includes the proper scheduling on when would be the most accurate time to give the rewards. Generally rewards received by an individual currently after accomplishment of a goal, or short after attainment of a given targeted performance level, are the most valued rewards and the rewards that serve best to install a desire for further achievement or continued good performance, when the reward is fastened to performance in time that reward is nigh associated with the performance. It becomes an extension of the performance. It has real meaning bec ause one can vividly see that it was received for performance.Laws that Affects Employee RewardsIf the employers are thought of giving employees special rewards as incentives for having good attending records, there are some legal and laws which prohibits them to do so.  For instance, the royal mail introduced a reward system for staff which did not take time off sick. Under this system, employees with full attendance records will be included into a prize draw to come on Ford Focus cars or holiday packages. In the staff incentive, this system can be perceive as a workable reward to permit the employees minimize or totally avoid their absences. However, this descriptor of system has some serious ramifications from certain piece of work law. This can be attributed to the employment discrimination law (Coopers, 2005).Herein, the management of Royal mail can be given discrimination charges for disability or age. The success of these claims depends on the specific situation of employees and their needs. This discrimination of age or disability may happen if, for instance, an employee had time off associated to the age and disability and this was not taken into consideration by the management under the reward system. Herein, there is an existing law that says that the failure of the management to set-aside such employee’s absence imputable to age or disability related reasons can be considered as less favourable treatment.  Hence, this would resist the company to provide reward for those individual who have no absences for this would not be fair for other employees. In this regard, if the company would like to continue the reward system, they must have some list of exceptions in the reward system. In this regard, it is safer for employees to give bonuses and rewards based on the performance and not by the number of absences.ConclusionRegardless of the targeted employees, the organization today is attempting to become employers of choice.  In order to become one, the management of the organization shall create an Employee reward system where potential job candidates feel that it will be an accomplishment to earn a job with the organization, and that in one case they have a job, the individual’s performance will be rewarded.ReferenceCreech, R. (1995). Employee Motivation. Management Quarterly, 36(2), 33+.DeWitt, G. and Hamel, G. (2002). option Compensation Plan. Legislative Finance Committee. Online procurable at http://leg.mt.gov/content/publications/fiscal/interim/financecmty_june2002/broadband_report.pdf Retrieve April 21, 2008.Dean, J.W.; Snell, S.A. (1993). â€Å"‘ combine Manufacturing and Job origination:The Moderating Effect of organisational Inertia.Gomez-Mejia, L.R.; Welbourne, T.M. (1990). â€Å"‘The Role of Compensation in The Human Resource Management Strategies of High Technology Firms”, in M. A. Von Glinow and S. A. Mohrman (eds.), Managing complexity in High Technology Organ izations. New York: Oxford University Press.Hambrick, D.C.; Snow, C.C. (1989). â€Å"‘ strategical Reward Systems”, in C. C. Snow (ed.), Strategy, Organizational Design and Human Resource Management. Greenwich, Connecticut: JAI Press.Lawler, E.E. (1990). Strategic Pay. San Francisco: Jossey Bass.Payment Practices (2008. Online available http://pmf.haven gateway.org/remuneration_and_reward/pay_practices_in_the_uk. retrieve April 21, 2008.Romzek, B.S. (1989). Personal consequences of employee commitment. Academy of Management Journal, 32, 649-661Nelson, B. (1998). The help of the Un-Downsized. Public Management, Vol. 80, April 1998.Skinner, B. F. (1953). Science and Human Behavior. New York: surrender Press.Snell, S.A. and Dean, J.W. (1992). â€Å"‘Integrated Manufacturing and Human Resource Management: A Human Capital Perspective”, Academy of     Management Journal, 35: 467-504.Coopers, RT (2005). Employment Law: Attendance Rewards †Legal Ram ifications. Online available http://www.uedawn.com/article.cfm/id/57087. Retrieve April 21, 2008.\r\n'