Harrods Vs. Extrinsic Reward System

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

The reason why reward system did not work with Yakkatech staff is due to poor job design. Employee’s job characteristics were low and created high critical psychological states, which results low outcomes. Yakkatech executive’s provided a short fix, and did not address the root of job dissatisfaction. The employees were disconnected and dissatisfied for the repetitive job task, to change the job design and increase motivation, Yakkatech can implement Contemporary job strategy.

Armstrong (2012) affirms that definitions of total rewards characteristically includes not only traditional, quantifiable elements such as salary, variable pay and benefits but comprises also more intangible non-cash components such as gaining knowledge, ability to acquire and act or take responsibility, progress in career, and the conducive environment provided by the organization. SZT Corp requires a pretty complex and flexible total rewards program to meet the needs of their multi-national colleagues. The total rewards programs has to slightly vary for each country that SZT Corp operates in and must cover compensation, benefits, performance and recognition, learning and development, and a work-life balance. SZT Corp has to maintain a total rewards program that remains competitive with the competitors in the different nations all over the world.

Economic or the effects of the economy on designing, implementing and maintain a Total Rewards package.

The rewards encourage employees to work harder and smart which helps the bottom line for employers.

Companies utilize incentive pay to reward their employees for partially or completely achieving a predetermined work objective. This type of pay is defined as compensation. Incentive pay systems are based on the performance of groups and individuals, relative performance, and how much the employee or employees contribute to the company (Martocchio, 2004, p. 77). The approach to incentive pay is similar to merit and seniority pay, in that incentive pay increases the employee 's base pay. Companies usually set up incentive pay programs to motivate their employees or to control

The newly introduced Reward Management system does not have the proper balance between the Financial and Non - Financial Rewards, individual and group rewards. Financial rewards and group incentives are one way businesses can show their appreciation to employees for hard work and dedication, but this should be just one piece of the compensation system. Non-financial rewards and individual incentives can carry just as much weight by empowering employees, as well as giving them a sense of accomplishment and of belonging.

An effective reward system is organized to stimulate, inspire and motivate individuals to enhance their overall job performance. Our system is design to appeal and retain staff of the right quality with an understanding of the financial status of the organization. This reward system is design to boost the functions and core values of the organization that our employees will continue to with success.

They are far more than just bonus plans and stock options. Reward systems mostly include various awards, recognition, promotions, reassignment, non-monetary bonuses linked to the performance of the employees. It includes a variety of monetary as well as non-monetary rewards (Deeprose, 2007). Rewards are important motivators. Their effectiveness depends upon three factors: drives, preference value and satisfying value of the goal objects. Financial incentives are linked more effectively with basic motivation or deficiency needs (which are necessary for survival). Non-financial incentives are linked more closely with higher motivation or becoming needs (self actualization needs) (Tyson & York, 2000).

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to

For allocating rewards many managers felt that sometimes HR adds value. But there are no clear process laid for reward system, it’s done at the discretion of line managers. In some organization there is limited scope for rewards system.

Nowadays, compensation plays important roles in the organisation. Compensation defined as remuneration that given to employees based on their contribution towards their organisation. Proper compensation helps to balance employee-work relation. Besides that, compensation is also improves strategic goals of human resource management. And, attractive compensation motivates employees in term of encouraging them to perform well. With that, employees’ performance increase productivity of the organisation. In other words, it creates job satisfaction; reduce high turnover and lower absenteeism. On the other hands, career advancement is always there. Again, compensation that offered by organisation attracts job candidates. There are three types of compensation

After discussing the solutions for the main problem which is de-motivation, advantages and disadvantages of each solution will be stated. The first solution is increasing salaries, by this way employees will be motivated and will put all their effort in the work they are doing as extrinsic motivation is required. Extrinsic motivation is when a person is motivated by external factors such tangible rewards. Workers from other companies might also leave there jobs and come to Harrods as they offer better salaries. The disadvantage of increasing the salary is that it will cost the company a lot of money. The second solution is having flexible working hours. This method will help employees feel comfortable and do their work easily. For example,

There are certain must that organization have to be fully implemented, managed and developed in order to achieve the business goals and succeed. And employee’s performance is one of the main elements that will support the firms in the long run. The purpose of reward system is to attract and retain suitable employees and those who bring in benefits for the company. Beside that also influence culture, motivate employees to meet their job objective and reinforce and define the firm structure (Armstrong, 2012:

Workplace reward systems are incentive programs that encourage employee engagement and productivity by offering bonuses, increased pay, additional time off or other awards for a job well done. Reward systems recognize staff members who excel in areas such as customer service, loyalty and sales