Managing Human Resources PDF

Managing Human Resources
Managing Human Resources
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Managing Human Resources
Managing Human Resources
Managing human resources is a function performed by an organisation's managers relative to
its employees. Achieving a perfect working environment may be impractical; however,
organisations should align their objectives and visions to achieve the best working conditions
for employees. The effective way to ensure employee satisfaction and motivation are through
total reward schemes. This essay illustrates how a total reward strategy is applied to keep the
employees satisfied. Furthermore, practical applications of total reward in Amazon and Tesco
PLC are presented.
Total Reward Strategy
Total reward refers to a reward strategy that focuses on combining all organisation's
investments (Turnea and Prodan, 2020). The total reward is not just about base pay, but it
extends to the range of benefits in the employment package that supports the organisation's
culture and objectives (Turnea and Prodan, 2020). The ultimate aim of total reward is to
encourage and promote employee engagement to improve the general organisation's
performance. Besides, the employees get to choose and voice the total reward offerings and
enhance psychological contracts.
A total reward is often a long-term approach based on incremental changes rather than radical
changes. The process can be gradually introduced in inexpensive ways through properly
comprehending the employee reward preference and communicating what is already in place
(Turnea and Prodan, 2020). Total rewards entail both monetary and non-monetary forms of
compensation which ensure employees value the totality of their employment packages.
Even though the total reward has emphases on employee proposition aspects, base payment
remains the foundation. A total reward strategy can only be successful if the managers are
genuinely engaged in positively and regularly promoting the scheme. Ensuring a positive
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Managing Human Resources
work environment that enhances commitment and trust offers employees an opportunity for
growth, development, and empowerment to perform effectively (Hook and Jenkins, 2019).
Consequentially, the well-being of individual employees and organisational success is
ensured. Designing and implementing total reward packages require proper assessment of
possible risks and adequate planning.
Evaluation of Key Elements of Total Reward Strategy in Alignment with Business
Goals, Cost, and Future Intents
Organisations have unique structures, which means that a total reward approach may be
successful in one organisation, but fail if copied by another organisation of a different system.
Therefore, the course needs to be tied to the objectives and needs of an organisation (CIPD,
2019). However, some common aspects of total reward include pay, Local Government
Pension Scheme, non-monetary bonuses and recognition, employee benefits, buying and
selling annual leave, and total remuneration statements. The elements of each aspect can be
introduced individually, depending on what the organisation’s management feels is right.
Pay
An organisation’s reward strategy should assure the necessity of non-discriminatory and fair
pay. Besides, the compensation needs to reflect the external market for retention and
recruitment and correlate pay and employee performance (CIPD, 2019). Employers tend to
focus on intangible rewards such as challenging work, career development, and motivational
leadership to boost employee engagement, other than paying more for employee performance
and retention. As far as pay is concerned, organisations should review their strategic
approach to pay and reward in light of the possible future challenges (Hook and Jenkins,
2019).
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Managing Human Resources
The Green Book provides frameworks for organisations to develop their pay approaches and
proceed according to their specific strategies (CIPD, 2019). For example, the Green Book
gives various organisations discretion over pay rates to adjust to their respective local
markets. Additionally, the Green Book has no preclusions to pay related to performance nor
withholding increments. However, the organisations which desire to explore such options
must involve the local Trade union colleagues. If the pay structure remains relevant after
reviewing the strategy, the organisation may then communicate and reinforce the policies in
their various preferred ways.
Local Government Pension Scheme (LGPS)
The LGPS is issued to employees by the authorities who pay for large portions of the cost of
providing a good range of benefits, making it a valuable part of the employee package (CIPD,
2019). Besides highlighting the value of the pension scheme, the total reward approach also
trades off other aspects of the reward package. Most organisations in the private sector
indicate the employer’s contribution to the pension scheme in the total payment statements.
The LGPS is, however, a defined benefit rather than a defined contribution scheme.
Organisations contribute to the pension fund issued by their respective local pension funds
authority.
The rate of employer contribution is subject to increase or decrease depending on the funding
level at the time of valuation (CIPD, 2019). The employer's contribution can be reduced if the
fund's assets relative to its liabilities have risen. Conversely, if the investments have gone
down close to the liabilities, there is an increase in the employer contribution rate. Showing
the employer contribution rate on the total remuneration can make the employee think that
their pension is directly proportional to the level of employer rates, which is not the case. The
employer contribution rate does not affect the benefits paid to the employee.
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