MOD003486: Total Reward System Application in Managing Human Resources

This essay explores the concept of managing human resources through the application of a total reward system, comparing its implementation at Burberry and Venturi UK Ltd. It defines human resource management and the challenges involved in aligning diverse employee perspectives towards organizational goals. The essay details the components of a total reward strategy, including payment, benefits, well-being, development, recognition, and career opportunities, and discusses the advantages and disadvantages for both employers and employees. It also references the World at Work total reward model. The essay concludes by considering the range of total reward practices and their impact on employee motivation and organizational performance. Desklib offers a variety of study tools and solved assignments for students.

MANAGING HUMAN
RESOURCE

INTRODUCTION
The concept of human resource denotes to the appropriate management of company's
staff, training them, motivating them, providing their roles and responsibilities, retaining them
and providing adequate recognition based on their position and hard work. This generally
combines all the employees of an organization who are dedicated towards the achievement of
organizational common goal by performing different jobs within various functions of a company.
The company set ups a different department for managing human resource affairs under a
managership or a leadership of specialized personnel who is known as manager of human
resource and is responsible for managing all the affairs related to company's employees such as
having interviews, hiring, training, motivating, retaining, resolving queries as well as providing
remuneration and rewards based on their works (Beck-Krala, 2020). Managing human resource
is categorized as the most toughest job within an organization as this involves dealing with
different minds whose perception, thoughts, views are different with each other and bringing
them to agree and dedicated fort a single goal is highly difficult. The present report includes an
essay on managing human resource with an application of total reward system at two different
organizations that are Burberry which is a beauty and fashion store and another is Venturi UK
Ltd. which is a recruitment agency in UK.
MAIN BODY
Total Reward Strategy
The concept of total reward strategy refers to a specific system which is being executed
by a company which offers monetary as well as non monetary benefits to the organizational
employees which is beneficial for the business ultimately for those who works harder towards
the attainment of business goals. Monetary rewards refers to the concept of providing salary
appraisal, bonus or any other benefit to the company's staff with respect to the liquid cash as a
token of appreciation to the employee. On the other hand, the non monetary benefits refers to the
appreciation provided to an employee with placing him or her at higher position or recognising
him in front of whole organization, etc. that does not involves indulgence of any liquid cash. The
different elements of total reward strategy includes benefits, payment, well being, development,
recognition and careers that are described below:

Payment: This includes directing locational specific or global challenges related to the
payment maintaining a balance between their variable and fixed pay, to assist equality in gender
or such work that involves high development landscape.
Benefits: This involves financing, optimizing a portfolio, experience of staff in order to
meet the developed talent along with business needs (Cui and et. al., 2021).
Careers: This includes transformation towards career entablement from career
management with an assistance of expertise and agile which supports in optimizing business
with a combination of employees needs.
Well being: Under this well being is concerned with social, emotional, financial and
physical opportunities or challenges.
When the company's total reward system is concerned with the present goals of an
organization this leads to the dedication and hard work which could be brought by appreciating
company's employees and providing rewards to each who gives their full dedication and hard
work. A company's strong objective is regarded as a advantageous strategy in order to derive
organizational jobs satisfaction which assists in attracting as well as retaining the best workforce
within an organisation. This involves high level of transparency in objectives as well as workings
that develops motivation and dedication in employees to attain current business objectives. The
department of human resource with this is required to adopt right technology in order to help the
total reward strategy so that the employees can work with their highest potential to accomplish
the current objective.
With respect to future intend related to total reward system the company can implement
flexible working hours for those employees who are highly dedicated towards business or can
provide higher position in near future to the deserving candidate so to attain business objectives
in time. Company can provide rewards to talented employee in future for the work done today.
When looking towards the overall cost of the company from this total reward system, it
will become a costlier expense to the firm as when they are rewarding to their talented
employees the treasure of company will get reduced with the amount of appreciation allotted for
appraisal or bonuses. This would definitely lead to employees motivation but on the other hand
the profit margin of company would get reduced due to which they can have less development
plans for business or can charge high from the customer for their offerings into market (Ghiasi
and et. al., 2021) .

Different models of total reward system
Total rewards comprises all phases of work that are being valued by people and involve
different components like development opportunities, smooth working and so on. It has several
implications for cultural change as the main focus is on the part of employee empowerment.
There are five elements which are involved in this model and these are compensation, benefits,
recognition, development and well-being. There are both internal as well as external influences
which create an impact on the model. In context with internal influence it includes workforce,
strategy, leadership, culture and the aspect of inclusion. On the basis of external influence it
involve technology advancement, social norms, regulatory environment and product and labour
markets. There are certain approaches to total reward like in the form of business strategy, work
life balance, organisational culture and many more. In context with the chosen organisation it is
further being explained below: -
Compensation: - It is defined as the pay which is offered by an employer to all the
employees in context with exchange for services like on the basis of talent, time and so on. It
comprises of both variable and fixed cost that is being united to whole contributions being made.
In context with Burberry implements certain packages for compensation and is offered to all the
employees on the basis of the time which they give to the industry. While looking at the current
situation the company is still giving compensation to all their employees as all the stores are
being closed so they are relying on government to take help. On the other hand in Venturi
employees get the extra pay on the basis of how much money they actually make so the more
they make the higher their rate would be (Hsieh, Chen and Ching, 2021).
Well-being: - It is considered as that province of manpower which is very much
comfortable, healthy and carries certain environmental factors too. So, on the basis of total
rewards model the employers create an influence on the basis of building certain programs that
supports whole success of the workforce. In context with Burberry their top priority is always the
Total rewards comprises all phases of work that are being valued by people and involve different
components like development opportunities, smooth working and so on. It has several
implications for cultural change as the main focus is on the part of employee empowerment.
There are five elements which are involved in this model and these are compensation, benefits,
recognition, development and well-being. There are both internal as well as external influences
which create an impact on the model. In context with internal influence it includes workforce,

strategy, leadership, culture and the aspect of inclusion. On the basis of external influence it
involve technology advancement, social norms, regulatory environment and product and labour
markets. There are certain approaches to total reward like in the form of business strategy, work
life balance, organisational culture and many more. In context with the chosen organisation it is
further being explained below: -
Benefits: - In terms of all kinds of benefits there are certain programs which focus on
income protection, welfare and so on. On the basis of this the main objective is to provide
holistic level of well-being and security. In relation with the fashion industry they provide
various kinds of benefits like health insurance, life insurance and many more. They get discounts
of around 20 percent on clothing and accessories. In context with Venturi, they also provide
certain benefits on the basis of adding up the percentage in their overall salary (Hui, Liu and
Zhang, 2021).
Development: - All the employers provide their workers certain rewards in order to
enhance their skills and abilities so that their career can be developed. In context with Burberry
In accordance with Burberry they offer an incentive plan and various prizes which are offered at
their corporate development program. While on the other hand in Venturi, to develop career they
give various kinds of reward and recognition at the workplace which also develops strong level
of work ethics.
Recognition: - It is described as both formal and informal programs that treasure and
celebrate whole contributions which are being made. In the case of Burberry they use the way of
organising informal programs as being a fashion industry the best way which is considered is the
way of image recognition. On the other hand in Venturi the agency accepted the way of using
certain formal programs. well-being of their employees and customers. So, they manage it
efficiently with the help of maintaining their base pay for all the employees if they are not able to
fulfil all the roles. In accordance with Venturi they focus on the well-being through leading all
the individuals at high standard level.
The another model for total reward system refers to The World at work total reward
model which says that it reflects the conceptual power as well as maturity which shows the five
different elements which when combined gives rise to total rewards. This helps organisation in
providing environmental as well as corporate business context within which a whole concept of
total reward system has its existence. This articulates the wanted outcomes for attracting,

retaining as well as motivating the employees who develops the better results. It also shows the
varied relationship among employers and employees with respect to time, efforts as well as talent
in order to have desired outcomes for business (Jones and White, 2021).
Advantages and disadvantages of total reward system for employees and employers
Employers: - There are several benefits associated with total reward model in the case of
employers. One of the advantages is in context with higher employee retention rates. With the
help of this model employers get a chance to determine the value of each worker benefit and also
the total amount which is being invested. Besides this employers are also able to align rewards in
a better way as per the preferences of workers. On the basis of this they get more value and
productivity gets influenced. While on the other hand there are certain drawbacks also in
association with employers. As through total reward model employers may not be able to
properly define about the prizes, compensation and so on. Due to this workers may feel that
compensation is not appropriate and being indifferent.
Employees: - Through total reward model employees receive several types of benefit
schemes and insurances which is beneficial for both the organisations as well as for them too.
Employees receive various bonuses, increment in the salary and even paid sick leave through
which higher productivity takes place. On the other hand there are certain disadvantages also. In
relation with budget constraints which may take place at any point of time so on the basis of this
employees may get low salaries and even less benefits associated with their retirement. At the
same point of time it may create a negative impact on the performance of employees also
because there are some workers who perform high in context with the productivity but there are
many people who don't work much efficiently so on the basis of this they don't get such benefits
(Minzenmayer, 2020).
Range of total reward practices
Total reward practices are those practices which makes term adopted over describing
reward strategy which bring together all kinds of investment within the workforce of an
organization. This makes employees value within organization increased that helps them in
developing productivity and effectiveness. It acts as a combination of benefits, compensation and
rewards that employees receive from their organizations. This can include wages and bonuses as
well as recognition, workplace flexibility and career opportunities. Such practices includes five
major kinds of components in monetary context that has been explained as follows:

Wages and Salaries
Under it various things like compensation and comparison is done on the basis of salary
that is help for motivating of employees of Burberry and Venturi UK LTD that makes
performance enhancement done in more effective manner. In order to attract specialist skilled
and talented persons within both the organizations they are required to provide variable-pay
system rewards employees based on performance provided by them. Under it an employee
achieves level of pay and also through short-term incentives pay offers rewards makes stock
opinion and cash bonuses makes sustained productivity and performance for long term purpose
achieved which makes attractiveness with consistency developed within employee.
Work-Life Balance
In this working environment is required over promoting healthy balance which is been
made between work and personal time. Under it organization like Burberry and Venturi UK LTD
is required over preparing of proper working schedule which is helpful in maintaining work done
in more organized manner. Through this needs of employees can be identified which makes
working schedule allow them to fulfil it. This makes both organization sustain there talented
employees by making them feel that there personal cannot be disturbed in an way. Also through
promoting wellness through fitness facilities, nutritional counselling, health screenings and
stress-reduction workshops. Offer a child-care facility and consider offering financial
counselling that includes planning for retirement and an overview of investment alternatives
increases talented employee capability which makes them stay for long time within an
organization (Nirojan, and Mithulan, 2021).
Recognizing Good Performance
This is one of the most important part which is required to be followed by an organization
like Burberry and Venturi UK LTD that makes institute of system leading towards recognition
of performance made by team members. In this awards is been given to co-workers which makes
moral boosted of employees that helps in making them perform more work with more talent.
These organization through introducing new awards and monthly awards makes specially skilled
employees stay for long within these organizations. This makes appreciation launched over
making excellent within workplace improved.
Benefits That Go Beyond

Within the total rewards framework, employers may seek to offer benefits that go beyond
the legally mandated minimum of Social Security insurance, Medicare, unemployment
insurance, worker’s compensation insurance and state disability insurance. Through this both
organization by providing leave of absence, sick leave and bereavement leave makes specially
trained or skilled employees feel more attracted towards organization which increases there
sustainability.
The different range of non monetary rewards which a firm adopts in order to reward the
employees hard work are as under:
Flexible working hours
This refers to the relaxation given to an employee in against of hard work done by him
for the success of a business. This involves providing comfortable working hours or flexible
timings to an employee to work accordingly in company (Rappaport and et. al., 2020).
Extra leave
Under this reward system, an employee is rewarded with some extra leave when he or she
needs to have for their purpose which motivates him to get relaxed or spend some time with the
family.
Recognition
This is done by recognising employees efforts in front of top level management or in
front of whole organisation. By this an employees feels respected and recognized which
motivates them to stay retained in the organisation (Williams, 2020).
Non-traditional rewards
This involves rewarding employees with latest features or with the trends such as with
gift cards, holiday packages, celebratory lunch or dinner, rewarding through certificates or
trophies in company's annual meet or in any other celebration. The concept of modern reward
system or non traditional reward system offers different choices to the deserved employee such
as option in between lunch or dinner, type of drink which they prefers to have if they consumes,
holiday destination, etc. this encourages employee to stay associated with the same company and
continue their job for long term (Zhao and et. al., 2021).
CONCLUSION
From the above essay it can be said that the concept of total reward system is found in
every business and is an essential part of it which cannot be separated. No matter how the

companies applies this concept in their business but is definitely present there. This helps
companies in keep motivating their employees as well as retaining them in organization for long
term. Under this, a talented person is being rewarded in either monetary terms or in non
monetary terms. Monetary rewards refers to such which involves existence of cash or some
money that cold be in form of bonus or appraisal. The non monetary rewards involves
appreciation in front of top level management or higher recognition within firm. A company can
implement its total reward system by applying total reward model or theory which assists
business with clear understanding and proper structure. The concept carries both advantages as
well as disadvantages of total reward system which every business considers. There are different
range of total reward practices which are applied in company for attracting as well as retaining
higher talent in business.

REFERENCES
Books and Journals
Beck-Krala, E., 2020. Total Rewards. Encyclopedia of Sustainable Management, pp.1-9.
Cui and et. al., 2021. Differential modulation of creative problem solving by monetary rewards:
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Ghiasi and et. al., 2021. Who profits from the Canadian nanotechnology reward system?
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Hsieh, P.H., Chen, M.L. and Ching, W.J., 2021. Online Auction Buyers’ Brain Images When
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