Reward Management Strategies for Marks and Spencer

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 rewards 6
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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