Human Resource : Pay And Reward Strategies

2214 WordsNov 11, 20149 Pages
HUMAN RESOURCE ESSAY PAY AND REWARD STRATEGIES Explain and evaluate the main pay and reward strategies adopted by organisations. What are the benefits and drawbacks of each approach? INTRODUCTION Reward management has been criticized (Torrington and hall 1987) ‘old win in new bottles’ Hr manager has to be aware of need to ensure that the reward packages are fair and sensible. It becoming more complicated with growing introduction of legislation to avoid discrimination on basis of race sex, religion. Pay system tells a lot about the company itself and its core value. Company that has a little or no room at all for employee rewards believes in collectivism rather than individual creativeness. Contrary, those companies that appreciate…show more content…
Bevan and Thompson (1991) carried out a researcher according to which there is a strong relation between improved organisational effectiveness and the approach to performance management. There are several different method defined in the ’performance appraisal scheme’ which support performance management techniques. According to ACAS (2001): ‘Appraisals regularly record an assessment of an employee’s performance, potential and development needs. The appraisal is an opportunity to take an overall view of work content, loads and volume, to look back on what has been achieved during the reporting period and agree objectives for the next.’ One of the most fundamental issues that the organization can face with is to introduce the appropriate appraisal scheme. The purpose of appraisal is to enable a kind of assessment of the individuals working in the organization. It provides a basis of motivating the staff, improving their performance and making reward decisions. Firstly, people tend to work harder if they are given feedback of their job and they express a desire for recognition. Secondly, assessment increases motivation, by reasonable distribution of rewards. This gives incentives to people to pay more attention to their job and work harder in the future. Reward management is an essential part of Human Resource Management because pay and benefit can determine the recruitment, performance of employees and the objectives of the business. According to M
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