Human Resource Management : Salary And Reward System

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Human Resource Management 5.1 Salary and reward system Armstrong (2002) defined reward as how people are rewarded in accordance with their value to the organization (p.128). The objective of rewards are to attract qualified people to join the organisation, to keep employee coming to work and to motivate employees to achieve high levels of performance (Gibson, et al, 2009, p. 176). However, reward competitiveness referring to comparisons between the organisation’s pay and that of competitive organisation, Rewards that are perceived by members to be inadequate or inequitable will make it difficult for organisations to attract the type of people necessary for success (Bratton, 2007, p.365). Therefore, the truth that L’Oreal’s salaries are totally out touch with what the market pays will lead to difficulty in attracting talents. For this part, like Armstrong (2002) already suggested that reward is connected with philosophies, strategies, policies which are based upon the organization’s external and internal operating environments (p.128). L’Oreal cannot afford to make staff in the two companies get the same treatment, because lack of capital, it tries to spread wages increase over time, which is suitable for its current financial situation. 5.2 Selection and recruitment Normally, competency which refers to “all work related personal attributed, knowledge, experience and skills and values that a person draws on to perform their work well” (Roberts, 1997, p.6) is an important
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