Encouraging Human Resources: Factors for Personal Satisfaction Level

The assignment content highlights the importance of reward management in Tesco, a retail company. It emphasizes the need to recognize employees' efforts through letters of appreciation, rewards, certificates, momentum, and oral appreciation. The strategy also involves trust and empowerment by providing authority to make decisions, developing self-esteem and happiness among employees. Additionally, extrinsic rewards such as bonuses and salary increments are used to motivate employees. The content concludes that reward management is a crucial aspect of business operations, helping companies create a positive impact on growth and development while maintaining an effective brand image.

REWARD
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
HRM practices and its significance for the business..............................................................1
Introducing reward management and its significance ...........................................................2
Analysing role of reward management in modern business growth......................................3
Strategies of reward management .........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
In today's era of globalisation and hyper competition, each and every organisation is
developing strategic measures in order to maintain winning edge in the tough trading business
environment. With this context, reward management is given a crucial importance to gain the
leading heights of success in an impressive manner (Agwu, 2013). It is considered as one of the
most important motivational technique which benefits the employees to boost up their level of
morale and commitment towards organisation's success. It reflects giving attractive monetary and
non monetary incentives to the overall workforce to gain employee job satisfaction and
enjoyment in a significant way. With this context, the present report highlights the essential
aspects of reward management and the crucial HR practices adopted by Tesco to enhance its
performance and productivity in the corporate global environment.
HRM practices and its significance for the business
It is a growing and mandatory phenomenon to implement appropriate and exotic
HR practices. Doing this enables the corporation to maintain coordination and cooperation
within its overall workplace thereby avoiding disputes and conflicts. This assist the company in
gaining significant increment in its total productivity and profit margin.
With regard to the present case scenario, the crucial HR practices adopted by Tesco are
listed below- Recruitment and selection process (R&S)- The HR managers of the company lays a
significant concern over implementing a systematic and ethical R&S process in a
significant way. They emphasizes on planning an appropriate recruitment plan which
attracts the eligible and potential candidates effectively. Furthermore, for the selection
process, the management of the company focuses to conduct a systematic procedure in
the following manner- Conducting preliminary interview to short list the eligible candidates on the ground of
their age and educational qualification (Ajila and Abiola, 2014). Preparing a series for written exams to evaluate the short listed candidates on the basis of
their logical and analytical skills.
 Conducting final round of personal interview to select the prospective applicant on the
basis of his\her attitude towards the organisation's performance.
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Conducting such R&S process enables Tesco to select the right applicant for the right job
designation. Implementing fascinating motivational practices- In order to gain the highest level of
employee job satisfaction, the concerned organisation lays its significant concern over
implementing attractive motivational techniques. Considering this fact, the company
seeks to apply strategic human resource practices where it emphasises on treating the
employees of its organisation as the core asset for the company rather than cost. Also, it
focuses to provide various monetary and non monetary incentives to boost up the morale
and commitment level of its employees towards company's goal (Aktar, Sachu and Ali,
2012).
 Providing appropriate training programmes- The HR department of Tesco focuses to
provide its workforce with knowledgable and effective training sessions. Doing this helps
the employees to improve and enhance their knowledge, skills and competencies
impressively. It also benefits the organisation to increase its overall production and
performance level in the hyper competitive world.
Significance of HRM in Tesco
 Helps the company to maintain winning and competitive edge in the international
economies.
 Allows it to beat the tough line of its core competitors in a significant way.
 Helps to build exotic strategic alliance to gain global exposure effectively. Boost the
commitment and morale of its key employees.
Introducing reward management and its significance
It is a well known fact that human resources are valuable element for the business
enterprises. They are responsible to plan, organise, manage and execute various policies framed
to attain organisational objectives of TESCO. Companies whether are small and large are
interested to hire skilled and efficient manpower to increase their profitability. The performance
of an organisation and customer loyalty mostly depends upon its human resources (Armstrong,
Brown and Reilly, 2011).
After recruiting qualified professionals next responsibility of organisation is to motivate
and retain them. Therefore, modern world business entities like TESCO adopt reward
management system. It is concerned with formulation and implementation of strategies that aim
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to reward employees fairly and equitably. This can be recognised as motivational practices to
praise subordinates for their achievement and efforts for concerned business enterprise. TESCO
sets goals and establishes rules for its employees to follow to achieve those objectives. As the
employees are aware about set standards they perform accordingly and in return they acquire
rewards for high performance.
In contemporary world, human resource management has become complex and rigid in
nature. Corporation like TESCO needs to undertake various measures to encourage human
resources to perform tasks with dedication (Armstrong, 2013). Skilled managers and employees
are essential to acquire desired outcomes for the company. Therefore, reward management policy
plays crucial role in following manner:
 Firstly, it motivates employees to make better use of their skills and abilities in favour of
TESCO. They are encouraged to use both conventional and innovative techniques to
perform assigned task.
 Reward system helps to retain skilled and qualified professionals in the organisation. The
employees are able to strengthen performance and productivity of cited company in target
market.
 Moreover, effective reward management policies attracts new candidates to enter into
TESCO premises. It also avoids cost of hiring and training new employees for the
concerned corporation.
 In addition, it builds loyalty and honesty among managers or employees towards the
organisation so that it attains greater benefits (Baer, Oldham and Cummings, 2013).
Analysing role of reward management in modern business growth
Reward management is a significant and most crucial aspect for modern business growth
and development. Companies are adopting different strategies for enhancing employee
performance in the business aspect. Tesco has adopted well defined means of human resource
practice which has helped the company in enhancing the motivation of the employees and
developing effective impact on business success as well (Dodd, 2015). Application of theoretical
model will effectively help in analysing the impact of theories in actual business practice. Tesco
has effectively adopted the concept of soft HRM in actual business practice to attain high and
effective growth in the market.
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The Harvard model of HRM is one of the most effective means of measure adopted by
the companies for enhancing business options by involving employees in the internal business
operations. According to the selected study employees are the significant asset of the
organization and adopting effective strategies for their enhancement helps in attaining high
productivity and output in terms of revenue, brand recognition and employee retention as well.
According to the stated model significant aspects of the HR practices involves: Situational factors: Tesco has adopted effective and well defined means to analyse and
understand the situational factors for the business. The company effectively analyse the
business objectives, philosophies, legal aspects and management strategies to analyse and
understanding the needs of employees and develop strategies for the same. Factors
associated with social aspects, leadership needs, working conditions, market competition
etc are also considered in this segemnt for understanding the needs and demands of the
business (Gungor, 2011).
 Stakeholders interest: Analysing the needs and demands of stakeholders is also a
significance aspect for the business growth. Tesco closely understanding the needs and
demands of its stakeholders especially employees for attaining high and well developed
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business results. Moreover, it helps in strengthening the internal business position of the
company as well. Reward management of the company is established and starts to
develop at this stage of the process. HR policy: Companies then focuses on developing HR policies and strategies as an
integrated result of situational analysis and stakeholders interest for the business. Policies
related to employee influence, working system, reward Management etc. are developed at
this stage of the business operations. This help companies in effectively defining the
business strategies and drafting policies for employee enhancement and development in
the organization. According to Kahn, Farooq and Ullah (2010) reward system I closely
designed and developed at this stage of the process and impact of the same in effectively
analysed on HR outcomes for the business. At this stage of business operations Tesco
focuses on developing and communicating HR policies to employees for developing high
impact on employee performance. HR outcomes: The HR outcomes are defined by analysing the employee commitment
and contribution in the organizational success. According to Karami, Dolatabadi and
Rajeepour (2013) at this stage of business companies analyses the results of the overall
business operations through factors such as employee retention, cost effectiveness.
Profitability etc. Reward system of the business is a crucial aspect which helps in
defining HR outcomes for the company. The company focuses on effective designing of
reward management which helps the business unit in creating favourable business results.
Analysing effective means of rewards is a crucial aspect for the same. Pratheepkanth
(2011) analysed that unsatisfactory HR outcomes are often associated with reward
managemnt policy of the business as it helps in developing a base for employee
motivation and productivity in the business.
 Long term consequences: The overall impact of the overall process on the business
results in helping business to attain favourable business results. High profitability,
employee satisfaction, brand recognition etc. are the results of the same. According to
Saeed, Nayyab and Lodhi (2013) every business unit in the current competitive scenario
focus on developing an effective and well developed market position in the economy. A
well developed reward management system has a positive impact on employee
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motivation and retention as well which results in providing positive business results for
the organization.
Strategies of reward management
TESCO uses different reward management strategies in order to motivate and retain
skilled professionals in the organisation. These can be classified as intrinsic motivation and
extrinsic motivation policies. The strategies are specified in favour of TESCO as follows:
Intrinsic reward strategies- It is a framework that tends to satisfy personal satisfaction level of
a professional whether it be manager or employee. This includes following factors to encourage
human resources of the company: Recognition: According to this strategy, employees are recognised by their respective
mangers in form of letter of appreciation, reward, certificate, momentum or oral
appreciation. It satisfies need urge for the professional to make efforts for improvement
and execute tasks effectively. Even pat on the back is effective to boost morale of an
employee as it provides self-esteem and happiness to them (Yapa, 2012). Trust and empowerment: TESCO need to empower its employees by providing authority
to take some essential decisions on their basis. It develops trust among individuals to plan
and execute effective strategies in favour of concerned business entity. It forms reliance
among company and manpower to work together for development of cited business
organization.
Extrinsic reward- It reflects the physical and monetary way of rewarding an employee within an
organisational structure. Tesco makes use of the following reward systems to gain employee
satisfaction in an effective way- Bonuses- It is the most exotic reward system which tends to increase the level of
motivation, trust and confidence within its employees in a significant way. Tesco
provides its employees with such a reward on the basis of the individual's performance
within the organisational structure. However, such a reward system may result in creating
inferior complexity among other employees which may cause disputes and conflicts
within the workplace. It is upon the standard care of Tesco to provide attractive bonuses
to the employees on the grounds of their performance. For this the company should
develop the system of score card and should give scores to individual performance of the
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employee on a daily basis. Doing this would result in creating non-biased decision which
will avoid the root cause of disputes within the company (Agwu, 2013).
 Salary and remuneration: these are the basic needs of the employees which helps in
developing their significance in the business. Reward management process of the
company helps business units in determining the skills and efficiency of the employees
and developing effective salaries and remuneration accordingly. This is a basic
consideration which business units provide organizational employees against the services
they provide. Salary increment is one of the most common strategy used by business
units for enhancing employee motivation and effectiveness as well.
CONCLUSION
On the basis of above report is can be clearly analysed that reward management is one of
the crucial and most significant aspect of business operations. It help companies in creating a
well developed impact on the growth and development of business operations while maintaining
an effective brand image in the market. Different strategies and methods are implemented by the
companies for enhancing reward management strategy in the business.
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REFERENCES
Books and journals
Agwu, M. O., 2013. Impact of Fair Reward System on Employees Job Performance in Nigerian
Agip Oil Company Limited Port-Harcourt. British Journal of Education, Society &
Behavioral Science. 3(1). Pp. 47-64.
Ajila, C. and Abiola A., 2014. Influence of rewards on work performance in an organization.
Journal of Social Science. 8(1). pp. 7-12.
Aktar, S., Sachu, M. M. and Ali, M. E., 2012. The impact of rewards on employee performance
in commercial banks in Bangladesh: An empirical study. IOSR Journal of Business and
Management. 6(2). pp. 9-15,
Armstrong, Brown and Reilly, 2011. Increasing the effectiveness of reward management: an
incentive based approach. Human Relations. 33(1). pp. 106-120.
Armstrong, M., 2003. Employee Reward. 3rd ed. CIPD
Baer, M., Oldham, G. R. and Cummings, A., 2013. Rewarding Creativity: When does it Really
Matter?. The Leadership Quarterly.14. pp. 569-586.
Dodd, G., 2005. Canadian employees moving towards total rewards approach to Compensation.
[Online]. Available through: <htttp://www.watsonwyatt.com/Canada>. [Accessed on 5th
May 2016].
Gungor, P., 2011. The Relationship between Reward Management System and Employee
Performance with the Mediating Role of Motivation: A Quantitative Study on Global Banks .
Procedia Social and Behavioral Sciences. 24. pp.1510-1520.
Kahn, K. U., Farooq, S. U. And Ullah, M, I,. 2010. The Relationship between Rewards and
Employee Motivation in Commercial Banks of Pakistan. Research Journal of International
Studies. 14. pp 37-54.
Karami, A., Dolatabadi, R. H. and Rajeepour, S., 2013. Analyzing the Effectiveness of Reward
Management System on Employee Performance through the Mediating Role of Employee
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Motivation Case Study: Isfahan Regional Electric Company. International Journal of
Academic Research in Business and Social Science. 3 (9). pp. 327-338.
Pratheepkanth, P., 2011. Reward System And Its Impact On Employee Motivation In
Commercial Bank Of Sri Lanka Plc, In Jaffna District. Global Journal of Management and
Business Research. 11(4).
Saeed, R., Nayyab, H. H. and Lodhi, N. R., 2013. An Empirical Investigation of Rewards and
Employee Performance: A Case Study of Technical Education Authority of Pakistan. Middle-
East Journal of Scientific Research. 18(7). pp. 892-898.
Yapa, S., 2002. An examination of the relationship among job satisfaction, rewards and
organizational commitment. Journal of the management science. 1(1)/. pp. 46-66.
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