Managing Human Resources: Essay
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Added on 2021-05-05
Managing Human Resources: Essay
Added on 2021-05-05
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312479/415847Managing Human ResourcesStudent’s Name:Module Title:Managing Human ResourcesWord Limit:2500Date Submitted:03/11/20171
312479/415847Managing Human ResourcesIn human resource management, there are significant factors that affect how employees delivertheir services in institutions. One of these factors includes rewards. Every organisation has amethod of formulating and implementing policies and strategies that aim at rewarding itsemployees fairly. Besides fairness, an organisation also focuses on equity and consistency instrategizing and implementing a reward system. An organisation that follows such guidelines islikely to have an efficient reward system that can be applicable across various sectors. Thispaper will explain the concept of total rewards by examining how it relates to multiple theories ofmotivation. The essay will later evaluate how effectively the concept applies across differentemployment sectors of an economy. Rewards can be referred to all forms of financial returns and tangible benefits, as well asservices that an employee may get as part of an employment relationship. A total rewardssystem can also be defined as a holistic methodology used by any organisation incompensating and motivating employees for the services that they deliver in a bid to improveprofitability and competitive advantage. In so doing, other human resource factors like employeeengagement, capital management, and strategic reward management are also put intoconsideration. The method does not only concern the actual pay, but it entails a wide range ofother non-financial paybacks like recognising employees, hence giving them learningopportunities that would lead to their development during their time in service. This system alsoaims at helping an organisation achieve its business goals while putting employees intoconsideration by encouraging, motivating, and retaining the effective ones to improve the overallperformance of the company. The system equally thrives at aligning employees and their needsto matters regarding reward management and practices of an industry. 2
312479/415847Managing Human ResourcesArmstrong and Taylor (2014) suggest that a reward system is more inclined towards strategies,processes, and policies than any other aspect (p. 90). These three features are the most centralpivots taken into consideration when an organisation is planning on rewarding employees whosteer their respective firms positively towards achieving its organizational goals. In other words,a reward system entails the value given to workers as they make contributions to anorganisation based on their skills, efforts, and experiences. So, the rewards given to employeescan be categorised into two groups, which include non-financial awards, such as increased jobopportunities and recognition within an organisation (Gilmore and Williams, 2013, p. 76). Theother category entails monetary benefits which provide monthly payments and other forms ofallowances. Such a concept was introduced into the management field in the late 20th centurybut was put into practical use in the first decade of the 21st century. Its applicability during thisperiod was made up of five major elements that include compensation, performance, work-lifeequilibrium, recognition, and the development of career opportunities (Gilmore and Williams,2013, p. 78).Scholars argue that rewards and other forms of recognition are some of the practices that playsignificant roles in engaging employees. For a company to come up with a well-designedorganisational reward system, it has to think of a compensation strategy, which will motivate theemployees. This kind of reward system is one that involves everything that regards to workers’value in employment relationships. A wholesome look at the total rewards system reveals that itplays three significant roles within an organisation. Firstly, complete reward system motivatesthe staff, attracts better employees, and maintains a productive workforce. Therefore, thismakes the rewarding system a significant aspect of the general branding of a firm’s workforce.3
312479/415847Managing Human ResourcesOther definitions of this concept give a typical encompassment of non-traditional, quantifiable,variability, and also other non-tangible elements. The measurable components include the onessuch as salary while variability incorporates other factors of pay and job benefits. Conversely,intangible fundamentals include those which are concerned with the scope of achieving andexercising responsibility, as well as career opportunity development. The elusive essentials mayalso include the quality of work life offered by the company.For the concept of total rewards system to be understood in connection with its significance toemployer and staff, its components have to be keenly examined. These elements includecompensation, non-financial benefits, recognition, professional development, and the balance ofwork and social lives. Compensation, in this perspective, can be considered as all the possible ways that an employeegains financial income from an organisation. It consists of a standard salary or wages as well asbonuses and profits shared among employees. Benefits can also refer to both employer optionsof recognising staff and mandatory programs within a firm which aims at rewarding them non-financially. Professional development aspect of reward entails a wide range of learning andopportunities meant to advance one's career. Recognition can be applied based on the acknowledgement of an individual who hassatisfactorily completed assigned tasks (Schein, 2010, p. 90). This identification is usually madeformerly using specified recognition programs. Some of the recognised agenda used includeincentives that would encourage staff to work extra hard. The last significant component of areward system is the work-life balance. This can be referred to as a way of letting employees4
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