INTRODUTION – Royal Bank of Scotland (RBS)1
REWARD STRATEGY – Review and Evaluation2
Herzberg and ‘two-factor’ theory2
Maslow’s Hierarchy of Needs3
Motivation through Total Reward3
Result Based Payments4
PERFORMANCE MANAGEMENT – Review and Evaluation5
Books and Journals:8
INTRODUTION – Royal Bank of Scotland (RBS)
The Royal Bank of Scotland (RBS) is one of the largest financial institutions in the world which is one of the retail banking subsidiaries of the Royal Bank of Scotland Group. RBS provides branch banking facilities throughout the British Isles, together with NatWest and Ulster Bank. Globally, RBS has a range of operations in Asia Pacific, Europe and North America. There are a number of RBS centres in sixteen North American states, thirteen European countries and eight major Asia Pacific cities. RBS has around 700 branches that are spread in many larger towns and cities throughout England, Wales and rest of the world but most of them are located in Scotland. Society of the Subscribed Equivalent Debt is from where the bank traces its origin. It was set up by the investors in the failed Company of Scotland to protect the compensation they received as part of the arrangements of the 1707 Acts of Union. In 1724, the “Equivalent Society” became the “Equivalent Company” that wished to move into banking. In 1727, the “New Bank” was chartered as the RBS. Archibald Campbell and Lord Ilay were its first governor. In 1728, RBS was recognised as the first bank in the world to offer an overdraft facility. The headquarters of RBS in located in Edinburg, Scotland. RBS is one of the world’s leading financial services companies. It provides a range of retail and corporate banking services, consumer finance services, wealth management services and financial markets services. As of 2011, RBS serves more than 36 million customers worldwide and has more than 140,000 employees. In 2011, RBS recorded a net loss of 2.04 billion when the operating CEO was Stephen Hester. RBS provides a full range of banking services under the RBS and NatWest brand. In addition, RBS also includes Citizens Financial Group, Direct Line, Churchill, Ulster Bank Group and other 40 brands. Its operations are diverse as a global business. For example, RBS bought a share in the second largest bank in China namely “Bank of China”, opening up new opportunities such as a new credit card business.
REWARD STRATEGY – Review and Evaluation
"Employee Reward is about how people are rewarded in accordance with their value to an organisation. It is concerned with both financial and non-financial rewards and embraces the philosophies, strategies, policies, plans and processes used by organisations to develop and maintain reward systems." (Armstrong, 2009) Reward strategy helps an organisation to achieve business goals and stakeholders’ needs. It depends upon how effectively an organisation discriminates between poor and good performers, gives the best people opportunities and ties rewards to performance. NatWest was a company in which the reward system was dominated by status, politics and employee tenure, till the time RBS had acquired it. After RBS had inherited the company, it introduced a new system that held managers responsible for the goals specified and rewarded good performance over average performance. So now, the bank’s reward policies were designed to ensure that RBS was recognised as an employer of choice. For many years have management theorists tried to understand what makes people work harder than others. In RBS, some of the motivation factors identified by theorists can be seen.
Herzberg and ‘two-factor’ theory
In American industry, Frederick Herzberg (1959) carried out a large scale survey on motivation. His survey results led him to develop a ‘two-factor’ theory of motivation. Firstly, he...