HRM Total Reward System

HRM TOTAL REWARD
SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. General overview of type of reward system and variations in it.............................................3
2. Advancement of type of reward system offer to organisation. ...............................................4
3. How rewards system address motivational needs....................................................................4
4. Risk of reward system. ............................................................................................................4
5. Budgeting condition needs to be focused................................................................................4
6. Internal and external components that impact implementation of reward system...................5
7. Example how other entity use reward system. ........................................................................5
8. Summary of reason for adopting reward system.....................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Total reward system inclusive of all components and efforts that employer can use in
recruiting, encouraging and keeping employees (Slusar, Allstate Insurance 2018). The
organisation should take initiative to provide incentive programs that helps to reduce turnover,
loyalty, bring improvement in employees wellness and enhance retention.
The present report is based on business activities of Mark & Spenser, it is major
multinational retailer that deals in high quality products such as shop, clothing, furniture, beauty
and wine etc.
Furthermore, report will cover advancement of rewards system, disadvantage of reward
system and will also cover key reasons for adopting this rewards system.
MAIN BODY
1. General overview of type of reward system and variations in it.
There are varied types of rewards system that aimed aimed towards individual and team
performance. Henceforth, mainly two types of reward system as-
Intrinsic-:
It is defined as non-physical rewards. This is directly connects with job performance.
Therefore, these are defined as-
 Sense of achievement- This takes lot of efforts, skills and courage to perform each task
within the organisation (Kadarusman and Herabadi, 2018). Additionally, achievement
within the firm deals with pride and sense of accomplished that employer feel about their
job.
 Recognition- It is rewarding for employees when they are recognised by co-workers and
other members of firm, if this implemented properly employer recognition can be
benefited to both employer and employees.
Extrinsic-:
 Bonuses- If a firm earn profit on behalf of individual or employees group then the firm
should appreciate the contribution by giving them additional payment (Anderson and
Rudacille, 2019). This is defined as financial compensation that motivates the
employees to perform their job more effectively.