Human Resource Management - Reward System in Singapore

HUMAN RESOURCE
MANAGEMENT

Human Resource Management 1
Contents
Objective of reward systems.......................................................................................... 2
Objective of reward system in Singapore...........................................................................4
Design of reward system............................................................................................... 5
Objective of reward system in Hanoi................................................................................6
Design of reward system............................................................................................... 8
References................................................................................................................ 9

Human Resource Management 2
The objective of reward systems
The reward systems in the organizations are stated to all the financial, non-financial and
spiritual payments provided to the employees in the exchange of work done by them. The
reward systems can comprise intrinsic and extrinsic rewards. The extrinsic rewards are items
like fiscal payments and employed conditions which are attained by the employees as a part
of the job. On the other side, intrinsic rewards are associated with the satisfaction which is
consequential from essentially performing the job like personal accomplishment and a
intellect of paying something to the society. The objectives of the reward scheme comprise
the following:
Bring into line the goals of the organization and personnel: The reward system should
assist the goals of the organization. The reward scheme at the strategic level should be
reliable with the organizational strategy. When the differentiation strategy is selected, for
instance, personnel may attain more substantial benefits and it can be associated with
attaining specific skills or attaining pre-determined targets. When a company is having a cost
leadership strategy than providing a simple reward system comprising low wages can be
appropriate (Alagaraja and Shuck, 2015). The simple reward system will also comprise less
skilled staff, little training to the new staff and less inducement to substantial rewards. The
organizations can even compete at a low cost. The employees can be recruited with low skills
and low wages.
To recruit and retain adequate workers with the appropriate skills: When the rewards to
be provided by the organization are not modest then it becomes quite difficult to recruit staff
as the employees can attain improved rewards from the rivalries. The staff can leave the
organization when they do not get a competitive reward system.
The high staff turnover can result in advanced costs of recruitment and training of more staff.
The human capital is deliberated as the most appreciated assets for the knowledge-based
companies. When it comes to high technology then the company can provide competitive
remuneration to the significant staff (Agyemang and Broadbent, 2015).
To empower staff: The motivation is deliberated to be a significant influence in the entire
performance of an organization. For a better reward system, an organization likes its
employees to work solider and be flexible. An association between reward structures and
motivation is considered to be a compound issue that is passionately deliberated in

Human Resource Management 3
accounting and human resource literature. Maslow’s hierarchy of needs is a well-identified
theory linked to motivation. Maslow defined that the wants and requirements of persons
follow a hierarchy. When the requirements of one level of the pyramid are met then the
person focus on attaining the requirements of the next level in the hierarchy. The lesser levels
identified in the hierarchy are biological, concerning the survival needs. Once these needs are
met, persons yearn safety which is followed by love, reverence and lastly self-actualization
on the top.
The execution of Maslow’s hierarchy of desires to reward arrangements state that
subordinates in the organization receiving low wages can be inspired by attaining advanced
monetary rewards. It will permit junior staff to meet their biological needs. When the workers
become gradually higher-paid then the financial rewards become less significant as other
requirements in the hierarchy become more significant such as job security, the capability to
attain one’s latent and sensation of being required.
According to Herzberg increasing rewards just motivates the employees on a temporary
basis. Once the employees become de-motivated again then it is required to refresh their
batteries with another upsurge. Another healthier way to inspire employees is to fix a
generator in the worker so that they can discover whatever motivates them. As per Herzberg,
these are the intrinsic factors in a job that empowers workers like attainment, recognition for
attainment, work itself, accountability and advancement. Offering greater accountability to
the personnel results in increasing motivation. It can be said that fiscal rewards only are not
sufficient to stimulate employees but other influences like offering greater recognition and
greater accountability are equally important. The employees can even be motivated at the
conferences and by promoting and involving them in decision making.
Aligning risk partialities of managers and personnel with those of the organization:
Both managers and senior workers make verdicts on the basis of organization and act as
agents of the company. In order to maintain a good recompense system, it is likable that the
risk of the partialities of the employees should match the risk partialities of the organization
and its shareholders. The reward systems should be inspired to avoid making investments that
risk the targets not being encountered. Several nations in the world have put in place new
rules and codes to change the reward systems. In the UK, financial services specialist
initiated a code where remuneration structures are reliant on complete risk management