Human Resource Management : Salary And Reward System

1489 Words Jul 31st, 2014 6 Pages
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
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5.3 Motivation
The working environment also may reduce employee’s motivation, for example, sales people had to share hotel room when they were on the road and the offices are so cramped, dark and uninspiring for workers. Managers need to attempt to create positive motivational atmosphere for their employees (Gibson, 2009); apparently, they did not put enough effort in marketing team, because their motivation is low. Staff losing also had effect on motivation of employees and work atmosphere.
For increasing motivation, L’Oreal provided staff with career development plan, as Gibson (2009) believe that training and learning opportunities also is an attractive factor for employees (p. 128). In the meantime, bonus system linked to retention was proposed which was also for motivating employees.
Financial Issues and Improvement
Receivables refer to that are expected to be collected in cash (Collier, 2012:121). In the exhibit 10 , we can find that receivables at end of 1999 was 113 in total and this number is too high for L’Oréal, especially they lack of money for investment and daily operation. As for stocks, at the end 1999, it was 146 which is also high and meant that the products were not well consumed.
On order to solve these problems, L’Oréal attained investment from headquarters. And then the adjustment of payments to suppliers helped improve cash flow. L’Oréal made wiser decision for resource arrangement, especially for
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