Reward Management Theories

Reward Management Theories Reward management has been described as a key function in HRM systems in modern organizations, and it is often designed to attract, retain and motivate employees (Milkovich and Newman, 2004 cited in Yu, Ying ying and Angeles, 2011, pp 2). Because of the strategic nature of human resource in the attainment of corporate goals and organizational competitiveness (Wright and McMahan, 1992), many authors have discussed the subject of reward management from different perspectives. Some of these perspectives focus on dividing reward systems into two categories; Extrinsic and intrinsic rewards. Extrinsic reward systems generally focus on offering performance-linked salary increases, monetary rewards, long term incentive plans, team-based rewards, and security benefits to employees (Laursen and Foss, 2003). These authors argue in favour of the values of these types of reward in boosting the morale of employees and improving their productivity as the same time. The result of this to the organization is better bottom line performance through increased revenue and profitability (Yu, Ying Yang and Angeles, 2011). Intrinsic rewards are non-monetary rewards and could come in form of enriching job responsibility and empowerment (Oldham and Cummings, 1996), providing training resources and comprehensive learning opportunities (Hennessey and Amabile, 1998), and maintaining good interpersonal relationships among employees (Ruppel and Harrington, 2000). Yu, Ying and Angeles (2011) identify two reward management perspectives based on the above classification and they call extrinsic reward systems, utilitarianism and intrinsic reward systems, romanticism. According to these authors, these are the two highly debatable theories of reward management in the HRM field. One of the basic assumptions underlying the theories of reward management is that the performance and motivation of employees can be improved by establishing a link between efforts and reward s through formalised and specific individual targets (Fay and Thompson, 2001). Although many authors and writers have established that there are enormous benefits for organizations in putting in a place an effective reward management system, some authors still warn against over-reliance on reward systems because of its potential to create several organizational issues which focus on fairness and diversity (Beer and Cannon, 2004). Many other authors have critically examined the underlying philosophies of reward management and the variables that make up a typical reward mix. Baeten (2008 cited in Jonathan and Clare, 2011, pp 2) provides a deeper insight into this when they argue that there are 34 different possible theories underlying a reward management system. Eisenhardt (1988 cited in Jonathan and Clare, 2011, pp 3) however limits reward management theories to two namely: The agency theory and the institutional theory. Agency theories of reward management basically seek to align organization and individual objectives. The main aim is to use incentives to direc t employees towards the interests of the owners of the business, and to design the reward mix to reflect that. On the other hand institutional reward management theory focuses on the formal and informal pressures exerted on organizations by other organizations with which it is connected. Some of these pressures could come in form of employment legislations, legal requirements, tax policies, and a desire to adopt the policies that others have adopted so as to gain the security that conformity is perceived to bring (DiMaggio and Powell , 1991). Finally other known theory of reward management under the institutional classification is normative pressure. This occurs when members of an organization collectively come together to define the conditions and methods of their works. 4 The design of policy and set of procedures HP operates in a highly competitive industry with a peculiar high staff turnover rates. Employees are often influenced by competitive reward policies that contribute to the attainment of their personal development goals and objectives. Kerr (1999) argues that rewards should be the third thing in an organization; measurements should be second, and clear articulation of the desired outcomes should be the first. In designing a reward policy for HP the following are the key objectives to be attained: 4.1 Policy statement HP`s goal is to attract and retain the most talented workforce which are strategically connected to the organization`s ability to meet its strategic goals and objectives. With this in mind we seek to offer a combination of the most competitive and flexible financial rewards in the US mobile and computer industry to all cadres of employees immediately they join us. We believe that this is important to the maintenance of our existing leadership position in the industry and we seek to pursue this policy as doggedly as possible with all fairness and equity. 4.1.1 Procedures Aim The central aim of this policy is to enable enhance HP`s ability to recruit the most talented experts in the US mobile and computer technology industry which we consider as strategic to the achievement of our corporate goals and objectives. Scope This financial reward policy shall apply to all regular full time and regular part time employees of HP immediately they join the company. Principles The entire reward policy of this company shall be built on a foundation of equality, commitment to diversity, fairness and a sense of good judgement The entire reward policy will be operated as transparently as possible and it will be made to comply with national regulatory frameworks for employee engagement in the computer and mobile technology industry All categories of employees that contribute more by measure of productivity shall be financially rewarded more. HP shall not take any extra contribution of any employee for granted. We believe that is crucial to fulfilling our commitment to equality and fairness. Responsibilities Role Accountability Rewards team Ensuring that financial policy reward activities are firmly in place and monitoring that the underlying principles of the reward are upheld HR Director and HR leadership team Providing control initiatives in situations where the principles of the policy are not upheld Senior management group Ensuring the proper alignment of HP`s corporate strategy and the reward policy 4.2 Correspondence to relevant national legislation The US department of labour has established regulations regarding employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ salaries and wages in place. One of such regulations is the fair labour standard Act of 1938 which is administered by the wages and hour division. This Act establishes standards for minimum wages, overtime, pay and record keeping. These standards affect over 130 million full time and part time employees at both private and public sectors of the US economy. This act promotes fairness, justice and equity and empowers employees to initiate a law suit against any employer who violates any of the principles and policies of the Act. This new policy thoroughly complies with the standards set out in the US department of labour Act of 1938 in all fairness and equity. The policy is also transparent enough to give employees the autonomy to institute law suits against HP if the companys policy is perceived to be contradictory to national legislations. 4.3 International implications The ILO (International Labour Organization) is the body in charge of administering labour standards and the organization presently comprises of 183 nations all around the world. The ILO has adopted 188 conventions which are treaties creating international labour law standards. The US has only adhered to two of these labour law standards which are the convention on the abolition of forced labour and the convention on the worst form of child labour. The US has resisted the adoption of the other parts of the convention including those that regulate remuneration and rewards to employees from an international perspective. Compensation and rewards at both executive and employee level have not been thoroughly developed in line with ILO standards. The US claims that its policies have been developed internally and competitively and do not need to be adjusted to reflect international standards. As competitive as the existing reward policy in HP is, it is still important to adopt an internation al view in its implementation. Source:http://www.iclg.co.uk/khadmin/Publications/pdf/4390.pdf-accessed on 30-04-2011 5 Evaluation of policy and procedures 5.1 Reward evaluation matrix Armstrong, Brown and Reilly (2009) prescribe six metrics for evaluating the success of any reward management policy. In view of this the procedures for evaluating the effectiveness of HP`s reward policy are set out below. Reward Aspect Measured By Reward strategy Clear reward strategy and annual plan in support of business strategy and plan Productivity and reward costs Profit, value added or sales per employee Total pay and reward costs compared with competition in the US computer industry Financial reward Financial recognition for behaviours in line with strategy and values Appropriate forms of rewarding performance and contribution in place Proportion of staffs covered by methods of rewarding performance and contribution Risk assessment of bonus plan design Clear demonstration of return on costs of bonus Employment Ratio of job offers to acceptances Staff involuntary turnover to resignation rates and retention of high performance to key skill staff Staff turnover and absence levels Reward management general Actual market position compared to desired Equal pay reviews carried out and acted upon Quantity, quality and frequency of reward communication Engagement and satisfaction with rewards Surveyed overall employee engagement levels Employee overall satisfaction with pay and rewards Employee opinions that rewards are competitive Employee opinion that performance is rewarded and managed effectively Employee opinion on level of understanding of reward Managers feel reward arrangements are flexible and meet their needs. 6 Conclusion Reward management is an integral part of the measure of the competitiveness of an organization. As a key component of the overall human resource strategy, reward management is central to the productivity of employees which is also linked to the overall profitability of an organization, as well as its long term survival. It is no longer plausible to think that a well crafted strategy can deliver an organization`s core values without involving the element of employee reward management. Available and existing research in this area suggests a strong link between the effectiveness of strategies with the involvement of an appropriate reward system (Richard and Ralph, 2001). Reward management is increasingly becoming a source of sustained competitive advantage for many organizations. The old pay structure which is based on job analyses, descriptions and specifications is no longer supporting the attainment of long term organizational goals and objectives (Gomez-Mejia and Balkin, 1992). This report has established a clear link between reward management and the sustainable attainment of organization goals and objectives through the contribution of extrinsically and intrinsically motivated employees. Through an example of a world class organization the role of a reward policy and its evaluation criteria has been discussed with a view to establishing a link between efforts and rewards through formalised and specified targets (Kessler and Purcell, 1992, cited in Giovanni and Tommasso, 2011, pp 2). In establishing the reward policy for an organization, the organization`s corporate objectives are important inputs to the entire process, and an alignment between these aim and objectives and the reward policy is strategically important to the effectiveness of the reward policy

Discipline in School and at Home Essay

Sometimes, when people hear the words discipline, they picture kids gone wild. We did use gentle discipline. And in school and home have to a calm, peaceful feel to it. We also had a lot of fun. A lot of the preparatory works have to follow where discipline was concerned. We have to use to teach care of self, care of the environment, control of movement, and grace and courtesy. The sense of order, ability to concentrate, and self-discipline gained from those activities made all our later life easier. It helps our life be more polite to teachers and parents as well as to others. We believed in following God, respecting one another, being responsible, and doing our best. We can use demonstrations to show them how to treat one another and even how to respect others’ property. We learn how to treat our toys, books, and learning materials with care. We studied religion and used many character-education lessons and books. Discussions about values were common in our home. Current research demonstrates that quality relationships with adults and peers make a tremendous difference for young people. A sense of connection or belonging is an important protective factor. Students who perceive a sense of connectedness or community at school and/or home are less likely to engage in risky behaviors (smoking, using drugs, engaging in violence). They are also more likely to be successful academically. Young people who grow up in families that they perceive as both kind and firm are more likely to thrive. Positive Discipline teaches parents and teachers how to be kind and firm at the same time and how to invite a sense of connection from the youngsters they are involved with. The approach is neither permissive nor punitive. Positive Discipline is an effective way for parents, teachers and students to learn life skills and build a sense of community and connectedness based on mutually respectful relationships. Even though we didn’t follow a schedule rigidly, we have a schedule or â€Å"rhythm† for our days. More important, we have to the stability of parents and teachers who loved us and each other and spent a lot of time with us. Freedom within limits is a very important in our school and home. While freedom to follow our interests help us experience success and independence, the limits were extremely important as well. We only enjoy the amount of freedom what we could handle responsibly. PROBLEMS [pic] Some basic statistics create a picture of the problem. # More than 30% of middle school students report being victimized three or more times by peers over the course of one year. # In a survey of high school students nationwide, the Center for Disease Control found that 17. 4% of students had carried a weapon (e. g., a gun, knife, or club) on one or more days in the month preceding the survey. Male students (29. 3%) were significantly more likely than female students (6. 2%) to have carried a weapon. CDC 2001 data. 1 # The same survey showed that 6. 6% of high school students had missed one or more days of school during the 30 days preceding the survey because they felt unsafe at school or on their way to or from school. (CDC) # During the 12 months preceding the survey, 19% of high school students had seriously considered attempting suicide (14.8% had a specific plan). Female students (23. 6%) were significantly more likely than male students (14. 2%) to have considered attempting suicide. (CDC) # Nearly one half (47. 1%) of students nationwide had consumed one or more drinks of alcohol on one or more of the 30 days preceding the survey (i. e. , current alcohol use). And 30% reported episodic heavy drinking in the month prior to the survey (5 or more drinks on one or more occasions). (CDC) 1CDC Youth Surveillance data available at CDC website http://www. cdc.gov/mmwr/preview/mmwrhtml/ss5104a1. htm [pic]. HOW TO SOLVE THE PROBLEM The techniques used in Positive Discipline have been shown to have a positive impact on schools. A study of a school-wide implementation of classroom meetings in a lower income Sacramento elementary school over a four-year period showed that suspensions decreased (from 64 annually to 4 annually), vandalism decreased (from 24 episodes to 2) and the teachers reported great improvement in classroom atmosphere, behavior, attitudes and academic performance. (Platt, 1979) A study of a parent and teacher education program directed at parents and teachers of students with â€Å"maladaptive† behavior using the tools used in Positive Discipline, showed a statistically significant improvement in the behavior of the students in the program schools when compared to the control schools. (Nelsen, 1979). Smaller studies examining the impacts of specific Positive Discipline tools have also shown positive results. (Browning 2000, Potter 1999, Esquivel). At Home The young person’s sense of connectedness with his or her family is associated with positive outcomes. A national study of 12,000 adolescents showed that a sense of connectedness with their family was protective against every health risk behavior except history of pregnancy. (Resnick et. al. 1997) The questions asked of the teens in this large study included whether or not the teen felt wanted or loved by family members, whether they perceived caring by their mother or father, how many activities they engaged in with either parent in the previous week, and parental presence during different times of the day. b) At School. A young person’s sense of connectedness with school or â€Å"sense of community† in school is associated with positive social and academic outcomes. As above, there is a strong correlation with a student’s perception of being â€Å"connected† and the sense of â€Å"community† with academic and social well being. This has been examined by numerous researchers. Resnick, et. al. (1997) asked students questions such as â€Å"Do you feel that teachers treat students fairly? † â€Å"Are you close to people at your school? † â€Å"Do you feel part of your school? † He found that a sense of connectedness to school was protective against health risk behaviors. These findings are consistent with those of Goodenow (1993) who found a relationship between the students’ sense of belonging and their academic achievement and motivation. CONCLUSSION This was probably one of the most important parts of disciplinary approach. We respected our teachers and parents. Teachers and parents also respect their students and child with their opinions. As we grow older, we should be more decision-making responsibility. We felt respected and didn’t have a need to rebel because we know we would consider our responsible, well-thought-out ideas. For example, when I was in third grade or so, I had the choice of how to handle my schoolwork before a week-long trip during the school year. I decided to do two weeks-worth of work in one week, working day and evening to allow myself a week off during my trip. When there was a behavioral problem, we often used logical consequences. Even though we had a schedule, we didn’t follow the clock exactly. Our schedule is more assignment or project based. If we procrastinated in completing our work for the day, the logical consequence was that our school day lasted longer until our assignments were finished. The interventions included using class meetings, a constructivist curriculum, a focus on meaningful work and team building. In schools that successfully implemented the program the sense of community increased. More interesting perhaps was that examined individually, students with a higher sense of community were found to accept the established norms of the school, whatever those were. In longitudinal studies the researchers found that students coming from schools that had implemented the program to increase a sense of community and work for higher- level thinking, did better than their classmates from comparison schools when they arrived at middle. There is some evidence that a sense of community among staff members may be an â€Å"important precursor to the development of a sense of community among students. † (Royal and Rossi, 1997) Not surprisingly, modeling appropriate relationships among the adults seems to support students in developing appropriate interpersonal relationships. Teachers’ sense of community is also related to their job satisfaction and effectiveness. There are many, many studies (not individually cited here) that show that parental involvement is related to school success. Interestingly, when more closely examined, authoritative parenting is strongly related to parental school involvement and â€Å"academic encouragement,† both of which are associated with school success. The positive impact of â€Å"school involvement† is significantly less if the parent does not also have a â€Å"kind and firm† parenting style.

External factors upon the activities of a business Essay

Introduction In this assignment, I will describe how external factors (political, legal, and social) are impacting upon the activities of a business. My chosen business is McDonalds and I will be explaining how the issues affect in both UK and India. McDonalds – is the world’s largest chain of fast food restaurants. They mainly serve hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes and desserts. They also have options such as salads, apples, milk, and Snack Wraps on the menu. Legal Factors These are the laws and regulations affecting the business. Some of the other factors may include: freedom of information, data protection, employment law and copyright etc. UK and India’s Legal Factors Health and safety – In the UK and India, the health and safety law is very important for each individual or employees especially in the workplace, to prevent injury, death and illness. This affects some businesses especially in India because they need to have all equipment for health and safety which will cost them a lot to fill it up. Food Hygiene – In both countries, McDonalds has to be very hygienic in order for the business to stay open and successful. The impact of an unhygienic restaurant would be catastrophic for the company’s image. Recruitment and Selection Law – All workers must be treated equally. For example In UK, you cannot dismiss a worker for being pregnant. There should be proper warning before dismissing a worker otherwise it will be treated as unfair dismissal. The Government makes it mandatory to have a written contract of employment. It contains the details of the wage rate; working  hours, and other necessary details regarding working conditions. The National Minimum Wage in UK is currently  £6.31 while in India; the minimum wage is 118 rupees per day or about  £1.50 which is very low compare to UK. In contrast to the UK, India can employ individuals aged fewer than 16 and the child labour in India has a poor image as children are often left unpaid. Social Factors These are the aspects of population like for example; immigration, age of population, taste and fashion, belief, individual’s personality, attitudes and lifestyle. UK Social Factors Immigration – This has negative impact upon the social factors in UK. A long time ago, there wasn’t that many people living in the UK, however, in the 21st century, a lot of people from different part of the world started to migrate and live in UK. The major impact is on population. It has an advantage such as a lot of people are skilled to be employed in the business. However, some migrants might be illegal entrants or maybe visa over stayers. Ageing Population – The demographics in UK illustrate that the numbers of older people are increasing. McDonalds can benefit from this ageing population as they can increase the range of their hot drink products in order to target and meet the needs of older people. McDonalds can sell more healthy products such as fruits and salads. Lifestyle – Businesses are always affected by the lifestyle as people have different fashions, tastes, ethics, beliefs etc. As UK is a multi-cultural country, McDonalds needs to provide different selections of foods from different cultures such as in India McDonalds do not sell any beef products as it is prohibited in their religion. India Social Factors High population growth – In India, due to high population, people have a hard  time to find a job, as a result of this people don’t have enough funding for their daily expenses. High degree of corruption level – Corruption is a major issue that adversely affects its economy in India. The causes of corruption in India include excessive regulations, complicated taxes and licensing systems so they add extra cost to the business. Bollywood popularity – Bollywood is the nickname for the Indian film industry. It became very popular as Indians are in love with movies. Political Factors Political factors are factors that deal with the public. For example; EU membership, taxation government support for business, infrastructure (roads), skills, business ethics (corruption). UK Political Factors EU membership – McDonalds will need to act in accordance to the European regulations. One of the regulations is the working hours where workers must only work for no more than 48 hours. Taxation – McDonalds is affected by the government taxes, such as income taxes and business rates as it is a large business, meaning that a lot of tax is taken away from their profits. And McDonalds will have to pay tax. Tax has an impact on McDonalds as it will be taken off their annual profit which will result in less diligence for shareholders. India Political Factors Infrastructure – India isn’t modernized unlike UK; the technology systems are much less advanced which could affect the business ability to produce, to sell, expand, and demand. The roads are not well established. And if McDonalds in India have poor machinery, poor buildings and facilities, then  it won’t benefit the business and won’t be able to expand.

Why September is Atlantic Hurricane Season

The Atlantic hurricane season begins on June 1, but an equally important  date to mark on your calendar is September 1—the start of the most active month for hurricane activity. Since official record keeping of  hurricanes began in 1950, over 60% of all Atlantic named storms have developed in the months of August or September. What is it about late August and September that produces a  flurry of tropical cyclones within the Atlantic Ocean? Generation of Storm Seedlings One of the reasons why cyclone activity climbs is the hyperactive African Easterly Jet (AEJ). The AEJ is an east-to-west oriented wind, much like the jet stream that flows across the US. As you may remember, temperature contrasts drive weather, including the flow of wind. The AEJ flows across Africa into the tropical Atlantic Ocean, thanks to the contrast in temperature between the dry, hot air over the Sahara Desert and the cooler, humid air over the forested areas of central Africa and the Gulf of Guinea. Since the flow near the AEJ goes faster than that further away in the surrounding air, what happens is that eddies begin to develop due to these differences  in speed. When this happens, you get whats called a tropical wave—an unstable  kink or wave in  the main flow pattern that is visible on satellite as clusters of thunderstorms. By providing the initial energy and spin needed for a hurricane to develop, tropical waves act like seedlings of tropical cyclones. The more seedlings the AEJ generates, the more chances there are for tropical cyclone development. Sea Temperatures Still in Summer Mode   Of course, having a storm seedling  is only half of the recipe. A wave wont automatically grow  into a tropical storm or  hurricane, unless several of the  atmospheres other conditions, including  sea surface temperatures (SSTs),  are favorable. While temperatures may be cooling off for us land-dwellers as fall begins, SSTs in the tropics are just reaching their peak. Because water has a higher heat capacity than land, it heats more slowly, which means the waters that have spent all summer absorbing the suns warmth are just reaching their maximum warmth at summers end. Sea surface temperatures must be 82 °F or warmer for a tropical cyclone to form and thrive, and in September, temperatures across the tropical Atlantic average 86 °F, nearly 5 degrees warmer than this threshold. Seasonal Peak   When you look at hurricane climatology, youll see a sharp increase in the number of named storms forming between  late August into September. This increase typically continues until September 10-11, which is thought of as the seasons peak. Peak doesnt necessarily  mean  multiple storms will form at once  or be active across the Atlantic on this particular date, it simply highlights when the bulk of named storms will have occurred by.  After this peak date, storm activity typically declines gently, with another five named storms, three hurricanes, and one major hurricane  occurring on average by the seasons November 30 end. Most Atlantic  Hurricanes at Once Although the word peak doesnt necessarily point to when the greatest number of cyclones will happen at once, there are several occasions when it did. The record for most hurricanes to ever occur at the same time in the Atlantic basin occurred in September 1998, when as many as four hurricanes—Georges, Ivan, Jeanne, and Karl—simultaneously spun across the Atlantic. As for the most tropical cyclones (storms and hurricanes) to ever exist at one time, a maximum of five  occurred on September 10-12, 1971. Peak Locations   Cyclone activity not only heats up in September but the activity in places where you can expect cyclones to spin up increases, as well. In late summer and early fall, theres generally an increased chance that storms will develop in the Caribbean Sea, along the Eastern Atlantic Seaboard, and in the Gulf of Mexico. By November, cold fronts and increasing wind shear—two disrupters to tropical development—penetrate into the Gulf of Mexico, Atlantic, and sometimes into the western Caribbean Sea as well, which spells the end of the peak August-October period.