MANAGING WORKFORCE ENGAGEMENT AND COMMITMENT
Muhammad Riaz Anwar
TABLE OF CONTENTS
2. AIMS AN ORGANIZATION MIGHT SET FOR ITS REWARD SYSTEM AND CONTRIBUTION OF REWARD TO REWARD, RETENTION AND EMPLOYEE PERFORMANCE
3 2.1 AIMS AN ORGANIZATION MIGHT SET FOR ITS REWARD SYSTEM
2.2 CONTRIBUTION OF REWARD TO RECRUITMENT, RETENTION AND PERFORMANCE OF EMPLOYEES
5 3. EVALUATION OF THE STATEMENT IN TERMS OF THE PROCESS OF MOTIVATION AND REWARD PRACTICE WITHIN ORGANIZATIONS
7 4. CONCLUSION
The following research will discuss two tasks. The first task will discuss the aims that are set by an organization when they plan a reward system and the contribution of rewards to recruitment, retention and performance of the employees. It will also discuss the statement about people working for money in terms of motivation and reward practice within companies. 2. AIMS AN ORGANIZATION MIGHT SET FOR ITS REWARD SYSTEM AND CONTRIBUTION OF REWARD TO REWARD, RETENTION AND EMPLOYEE PERFORMANCE 2.1 AIMS AN ORGANIZATION MIGHT SET FOR ITS REWARD SYSTEM
Maslow’s hierarchy of needs theory
Maslow has predicted that a hierarchy of needs motivate employees, with the satisfaction of one need leading to another (Cassidy and Kreitner, 2010). Although the employees are not consciously aware of the progression, they escalate the needs hierarchy.
Figure: Maslow’s hierarchy of needs theory
Source: Cassidy and Kreitner (2010)
A similar theory is the ERG theory (Existence- Relatedness- Growth) that stresses the growth of human motivation to progress over three levels of hierarchy. The theory, developed by Alderfer, also specifies employee to be motivated by more than one factor at a time. The theory also stipulates that a frustration in a higher level of hierarchy shall lead to the want of enhancing the lower lever need (Aswathappa, 2014).
Figure: The ERG Theory
Source: B.V. (2014)
Motivation could also be intrinsic or extrinsic, with the former specifying the feeling of contentment for an individual on the successful completion of activities and the latter discusses the reward structure like a materialistic reward or recognition on the job performed (Vasu et al, 2008). Therefore, it is evident that a reward system framed by the organization to recognize, reward and retain the employees is an external motivational factor. The process in which practices and policies are developed with the intentions to impact on the performance of a company based on the attraction and retention of talented people is strategic reward (Armstrong, 2012). The attraction, retention and engagement of talented people who will enable the company to achieve the strongest performance and assist the company to achieve the business objectives and goals are intended by the benefits of McDonalds (McDonalds, 2014). The benefits and compensation that are provided by McDonalds to perform a similar action involves medical, recognition programs, dental, incentive pay, profit sharing, employee and dependent life insurance, vacation and sabbatical program. The linking of reward to strategic performance is the final step in establishing the strategic plan (Alkhafaji and Nelson, 2013).A “pay for performance” philosophy is followed by pay and rewards program that is followed by McDonalds. The opportunities to the employees are based on results. The base pay, company car program and recognition programs are followed by the company to reward the employees based on their performance. The fast-food chain also provides short term and long term incentives to the employees (McDonalds, 2014). Annual performance is considered by the company in providing rewards at an individual and at a business level that measures the performance of the employees based on the achievement of business strategy. The payouts are also aligned based on the annual performance of the employees and the...
Please join StudyMode to read the full document