Reward Management Strategies for Marks and Spencer

This study explores the reward management strategies for Marks and Spencer, a British multinational retailer. It discusses the impact of intrinsic and extrinsic rewards on employee motivation and performance, and the importance of performance-related pay and ethical considerations in reward management. The study also highlights the effectiveness of total reward strategy, including benefits, compensation, performance recognition, and career development, in motivating employees.

Reward Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
2: Performance related pay..........................................................................................................3
3. Effectiveness of intrinsic and extrinsic rewards strategies in motivating employees.............4
4. Impact of reward strategy for retail organisation that utilises intrinsic and extrinsic rewards6
5 Factors that need to be considered that performance related pay is ethical and professional
approach to rewards.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Reward management can be defined as introduction of policies that rewards every
employee in a fair manner. This study is based on marks and Spencer, British multinational
retailer with headquarter in London. It specializes in selling home products, food products and
clothing. It has decided to reward employees on the basis of their performance and this study will
discuss some better strategies and ways by which this retailer can motivate and reward to their
employees on the basis of their performance. Further, it will discuss effectiveness of intrinsic and
extrinsic rewards and ways by which employers can motivate employees with these rewards.
MAIN BODY
2: Performance related pay
Compensation in the organisation will be one of the rewarding criteria for the people in order to
determine the performance towards the processes of achieving their goals. In the organisation
marks and spencer this has been one of the inclusive response where the management usually
stress upon the type of compensation that is usually being encroached upon the employees such
that they can work for over a greater pace and can attain the opportunities that are in their regard.
This can also be one of the rewarding criteria where and emphasis over the financial aspects
would eventually deal with the interest that is oriented towards work (Papenfuß and Keppeler,
2020). In this regard the equity theory of motivation will bring in the untold stories that are put
forth with respect to retailing sector and how far the compensation would determine the amount
of work that the people usually do. This theory was developed by John Stacey Adams and is also
known to be one of the key components of motivation that would actually bring forth the fairness
in terms of. According to this theory it is said that when the pay structure is high with respect to
the organisational policies than the amount of commitment and motivation would obviously go
to a much greater extent. For their the employees would also stay motivated towards the
organisational culture and they will try to accommodate their states towards a work protect. This
is one of the most common ways that is usually and titled in the organisations and most probably
the retailing sector. The retailing factors are known to be the challenging workplaces that will
bring about the potential of employees and therefore the highest compensation would eventually
derive their interest towards the working policies (Pompei and et.al, 2019). Marks and spencer
which is known to be one of the brand that is operating in many countries is known for its
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policies and standard ethical consideration that will highlight the employee standard and how far
they are being able to achieve their objectives. For this organisation it is a major criterion to
discuss over the pay and also consider the amount of work that is being stipulated by the
employees just to make sure that they stay motivated in terms of the highest rewards that is in
regard to their pay. When these rewards are being highlighted in the organisation the other
employees that are working as a part of organisational embodiment would eventually get to
identify the standard and will start comparing themselves upon developing their potential
towards work which is in return and important aspect for the organisational growth. Losing
motivation would often lead to destruction and that will also affect employee’s performance
along with organisational growth. This is one of the important factors and therefore the
organisation will often have to deal with the set of strategies in order to make sure that they bring
in the right set of motivation towards the compensation criteria which is one of the strengths that
will have to be inculcated. There are certain weaknesses that are in calculated in this regard
where the other employees that are not proned to any kind of rewards might feel demotivated
which will again be one of the impacts towards their performance. For this the management will
have to develop other training and development sessions such that the demotivated employees
will regain their consciousness and work for their own success (Al Rashdi, 2020).
3. Effectiveness of intrinsic and extrinsic rewards strategies in motivating employees
As on the basis of above discussion, it is found that employees of retail organisation have
questioned and asked for providing rewards on the basis of their performance. Nowadays, it has
become difficult for companies to manage their talent and retaining skilled employees due to
increasing competition. Changing needs of employees has put pressure on employers. Employees
want to work for those companies that understand their value and appreciate their performance.
For retaining skilled employees with themselves, this retailer has decided to motivate them with
intrinsic as well as extrinsic rewards.
Intrinsic rewards: In regard to this, it can be said that it refers an internal rewards that
are being given to employees from completing their tasks successfully. Most of the intrinsic
rewards are psychological and are based on the efforts and abilities of employees. The reason of
calling this intrinsic rewards as they are internal to the work being done and achieving them,
depends on one’s own effort (Zheng, Oh and Singh, 2018). They are important to sustained
behavioral change. It is believed that by providing such rewards, this retailer can increase
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employees’ satisfaction and can retain them with business. Some ways and examples of intrinsic
rewards that can motivate employees include:
Balance between personal and professional lives: Everyone wants to grow as it
increases their self-esteem. Employees nowadays find difficulties in managing their personal and
professional lives and it makes them frustrated. By allowing them an opportunity to maintain a
balance between personal and professional lives, employers can motivate them towards
accomplishing goals, improving performance and retaining with business for the long run. By
providing flexible working advantages and part time job opportunities, employers can motivate
them. By getting flexible working opportunities, they can enjoy their personal life and can spend
time with their family. It can make them refreshed at workplace and with refresh mind, they can
increase productivity.
Providing opportunities for advancement: Everyone in organisation want to progress.
It is important for employers to understand values and efforts of employees and by providing
them a clear path; employers can motivate employees and can make them feel valued. When
employees have clear vision and path then they find easier in performing their functions
(Manzoor, Wei, and Asif, 2021). By providing them opportunities to lead other and taking
advantages of promotional and other opportunities, employers of this retailer can solve problem
that employees are facing regarding rewards and motivation.
Promoting social interaction: It is believe that improved relations with colleagues and
manager help employees out in accomplishing their goals. When employees have improved
relations with their colleagues’ and leaders then they are more likely to come office on daily
basis and it decreases absenteeism, Employees tend to be happier when they have strong bonding
with their colleagues and it improves their overall performance. So, for this purpose, employers
of this retailer can encourage their employees to hang out and conduct businesses in areas other
than desk. By conducting office parties, dinner, employers can motivate their employees for
improving their performance and retaining with business for the long run. So, on the basis of
effectiveness of this strategy, it can be said that it is one of the best intrinsic reward.
Extrinsic rewards: It refers those rewards that are being given in financial form. As per
the form in which it is being give, such rewards are being called financial and tangible rewards.
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There are number of ways rather than normal pay, employers of this retailer can motivate
employees include:
Bonus: It is believed by employers that whatever they earn it all because of efforts of their
employees. Employees within organisation are being allotted with some projects and group tasks.
Employers earn profit due to efforts, given by tea members and for appreciating employees;
employers should give bonus to employees as per their contribution and performance. When
employees get bonus and financial rewards on the basis of their performance then they are more
likely to strive hard and improve their performance as well (Qu, C. and et.al., 2019).
Fringe benefits: It refers extra benefits and facilities that are being provided to employees
in addition to their basic wage or salary. Some examples of fringe benefits include: company’s
car, free life health and medical insurance, employees discount scheme, pension and others.
Nowadays, employees have become health conscious and by providing health insurance and
medical insurance facilities, employers can motivate employees and can retain within business. It
can give security to employees.
Promotion: Some employees within organisation are intensely hard working and some are
just average. When employers give same bonus and benefits to all then it de-motivate to those
employees who strive hard and who are intensely hard working. Employers should reward and
give promotional opportunities by which employees can understand their responsibility.
Promotion is related directly to increment in payment, status and power as well.
Profit sharing: Employees are equally creditable for organisational growth and progress
as well. A responsible company is one that shares profit with their employees and value their
efforts. When employees get profit sharing then in future they strive hard and try to make their
company beneficial (Murayama, 2019).
On the basis of above discussed intrinsic as well as extrinsic benefits and rewards, it can be
said that this retailer can solve problems that employees are facing. These rewards can make
beneficial to both employees and employers.
4. Impact of reward strategy for retail organisation that utilises intrinsic and extrinsic rewards
On the basis of above discussed intrinsic and extrinsic examples, it can clearly be said that
both these types can motivate employees for improving their performance and accomplishing
their goals as well. Both of these types of rewards can make beneficial to employees and
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employers of retail organisation. Before discussing effectiveness and impacts of intrinsic and
extrinsic rewards, it is important to understand total reward strategy (Kaur and Sharma, 2019).
A total reward strategy is a system that is implemented by businesses that provides
development, monetary as well as beneficial rewards to employees with the main aim of
motivating employees. This strategy combines benefits and compensation with personal growth
opportunities inside a motivated work environment. This total reward strategy is being made
with 5 main components such as: flexibility, compensation, benefits, and performance
recognition and career development.
Benefits that go beyond: Within total reward system, employers can offer all those benefits
to employees that go beyond the legally mandated minimum of social security insurance,
medical insurance and others. Along with leave of absence, sick leaves, employers can offer
vacation package. All of these benefits make employees feel valued and they may find easier in
performing their functions and increasing productivity as well. Increase employees’ satisfaction
and experience can improve image of company and they may find easier in attracting as well as
retaining skilled employees with them.
Work life balance: It is important for marks and Spencer to promote a healthy working
environment that can lead a healthy balance between work and personal time (Muhammad
Ashhad, 2021). By creating an atmosphere where employees can have time to take rest and
spending time with their family members, employers cam increase staff retention rate and can
encourage employees for improving their overall performance. There are number of ways by
which employers can make easier for employees to maintain a balance between personal and
professional lives such as: promoting wellness through fitness facility, health screening,
nutritional counselling and others. All these benefits can motivate employees and it can increase
their trust towards their company.
Career development:
Individual when decide to provide their services and participate in organization for
income generate they mainly consider getting more success in career. Because its useful for
improve life effectiveness (Govender and Bussin, 2020). So knowing this concept its important
that Mark and Spencer mainly concern towards with the career development practices for
employee which improve business quality and employee feel more motivated towards with the
organization practices. Career development is all above refers to includes approaches for
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employees like distribution of increment, new growth opportunities, new skills learning activity
development, new working skills distribution and many more. Examples when mark and Spencer
organization one employee provide their services as marketing employee, and they do have skills
and motivation towards new skills development its essential to provide them guidance and
essential training chance to prove them.
Recognising good performance:
Its essential to evaluate employee performance on continue manner. Because it develops
clarity that which employee has more potential and skill to achieve organization goals with
impressive manner. Identification of good performance of employee develop positive
environment. Manger, leader play major role in performance identification of employee because
they do have responsibility to evaluate daily activities, and their daily task achievement process
and timely. Evaluation of this term is easier to distribute rewards with great manner. Its one of
the most attractive and powerful approach for better environment expansion in business. Idea and
knowledge of this term Mark and Spencer industry which mainly provide retail services, so they
do have department like product supplier, finance, marketing and sales. But sales and marketing
activity pay major role for this company. Because, they do have to engage audience towards with
their product selling.
Salaries and wages: Distribution of salaries and wages require proper identification of employee
skills and performance evaluation. Mark and Spencer organization manager has responsibility to
consider major aspects like when they engage new employee in organization they have to
consider proper salary and wages because it influences employee retention problems when
company not provide good salary to employee on the basis of their education and skills
identification process. Timely distribution of salary is major essential term because individual
mainly working within in organization for completion and satisfaction of their needs and wants.
Salary is major part of motivation expansion in employee, its key aspects for business growth
and performance effectiveness.
Salary mainly depends on performance basis so its important that when employee provide
services to organization from one year or more they do have to develop concern towards the
appropriate and increment in salary (Sutton, 2020). Utilization of this approach develop
motivation in employee otherwise they do have option to analyse different source of income, and
they not feel good aspects towards with the organization.
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From the identification of intrinsic and extrinsic rewards its clear that Mark and Spencer
organization has to consider towards with both type of rewards because it makes more
consistency in business with employee performance effectiveness. Also, it develops positive
environment where employee feel motivated within performing tasks.
5 Factors that need to be considered that performance related pay is ethical and professional
approach to rewards
Performance related pay as an ethical approach: In order to consider the performance
related pay criteria and also to operate it in a more ethical standard there is an Emphasis that will
have to be portrayed because it is not until when the rules and regulations are going hand in hand
with the performance related pay that it can get in heat treated as one of the rewarding factors.
Public managerial support: this is one of the positive criteria where the managers as well
as the employees in the organization are included in order to deal with the management and
commitment that is oriented with employees in order to make sure that they gain the trust
towards identifying this particular entity to be introduced. It is not until when the employees are
more towards the work policies that the organization can move ahead in terms of initiating this
policy.
Performance related pay as a professional approach
Inclusion of both results and behavior criteria: while dealing with the performance
related pay it is first necessary that the results will have to be coordinating with the behavioral
criteria of employee (Ahmad and Farooq, 2020). The employees in the organization will have to
satisfy certain terms and conditions that would eventually determine their performance towards
the reward. For this they will have to maintain a proper job function and the entire behavioral
task that are identified as the specific objectives of the organization. It is only then the
performance related pay can be decided over a probable reward which is to be initiated for
people.
Developing managers in order to initiate the process: managers in the organization are
effectively incorporated into dealing with the utilization of processes and they are also standing
as accountability towards any issues that are portrayed with respect to performance related pay.
For this they will have to consistently work towards the ethical policies and will also have to deal
with certain standards that would incorporate in the organizational evaluations.
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For the expatriates that are working in New York and Paris this will be one of the biggest
bones because the orientation towards their currency is different from any other and it will also
hold a very good personification towards developing the career of employees. This can also be
one of the increments towards the rewards that are being given to employees and therefore it will
hold a profit that will encourage people to move ahead in terms of their contribution towards
services. The salary system in New York and Paris is much greater when compared to the other
countries of the world and therefore the individual performance in this criterion would eventually
rise their level and they would be able to deal with the extravagant changes that our existing. The
advantages that are oriented in this regard are many (Vignocchi, 2020).
It will bring about a motivation in the midst of employees that is necessary for people to
inculcate because in a retailing sector it is one of the probable factors that will have to be stressed
upon. There are certain challenges that will have to be faced by people around and the employees
in this regard will have to stay committed to approach the customer base time to reach the target.
By dealing with these entities, it is also necessary that the organizational objectives will have to
be maintained. By the sectors in your employees would often drain out with ideas and ideologies
and they might steady motivated towards work prospect which can be regained through the
performance related pay which is an essential factor of motivation. There are also disadvantages
that are included in this regard which will fall in regard to teamwork policies. Teamwork is
essential in the organization and when one person is earning more profit than the other it would
obviously deal with conflicts that are in the midst of employees. Measuring performance will
often lead to comparison and that will deteriorate The Other workforce that are in the
organization which might again bring in conflicts. These policies of insufficient motivation that
is brought forth with respect to other employees will have to be evenly dealt by the management
and will also have to come up with the strategies of orienting them to a better original.
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CONCLUSION
It has been summarized from the above study that motivation plays a vital role in improving
performing of employees and staff retention. It has further discussed effectiveness of
performance related pay and Maslow’s motivational theory and ways in which employers of
retailers can motivate their employees by applying these. It has also discussed importance of
both intrinsic and extrinsic type of rewards. Some intrinsic and extrinsic rewards that have been
discussed in this study include: flexible working, bonus, profit sharing, promotional
opportunities to employees and social gathering. Intrinsic as well as extrinsic both rewards make
beneficial to employees and employers as well. Lastly, it has discussed a way by which
employers can identify as performance related pay scheme is ethical and professional approach
reward.
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REFERENCES
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Online
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