Motivational Theory and Reward - Assignment Example

Human Resources Management Task 3 3.1 Motivational theory and reward Motivational theory refers to the strategies that are emulated by an organisation with an aim of enhancing the productivity of its employees leading to profitability of a company. Based on the stiff competition in the current business arena, firms have realised the need to maintain their productive employees in order to attain a competitive edge. The major motivational theories that are adopted by organisations include process theories, models of behaviour, needs theories as well as content theory. In their efforts to meets the needs of the employees, companies adopt Maslow’s Hierarchy of Needs. This theory depicts five steps hierarchy of needs that employers should provide to their employees. These include physiological needs, safety, love, esteem and self-actualisation (Murphy, 2009, p. 24). On the other hand, reward is a tangible or intangible appreciation that is given to an employee after a good performance. The objective of a reward is to make an employee repeat the rewarded behaviour. For instance, in order to meet the physiological needs of the employees, organisations should reward them with food and water. Similarly, social needs of workers are met through rewarding them with affection, belongingness and love. Self-respect, improvement of status, prestige and self-esteem are key rewards that meet the esteem requirements of workers according to Maslow’s Hierarchy of Needs. 3.2 Job evaluation process and other factors emulated to determine pay Job evaluation entails the strategies undertaken to analyse and assess the worth of jobs within a firm. One of the vital objectives of job evaluation is to ensure that employees are remunerated in an equitable way. Additionally, organisations undertake job evaluation to maintain an appropriate job grading techniques and to comply with legal requirements. Other factors that are used to determine employees pay include, minimum wage as stipulated by law, market rates of pay, equal pay and individual performance. British Leyland Motor Corporation Ltd (BLMC), a UK based motor vehicle manufacturing company adopts piecework to remunerate its employees. The amount of pay is usually re-rated whenever a change occurs in the technique of production. According to the BLMC policies, a change in the job does not result to a reduction of the salary. To motivate its employees especially in the production facility, the company increases its payment rates during an introduction of a new model. In addition to the piecework, employees who are responsible for servicing the production lines are remunerated by time rate and bonuses. This is in addition to the minimum rate as depicted by the UK labour laws. 3.3 Effectiveness of reward systems To ensure that workers are focused at attaining their goals as well as the objectives of the entire organisation, it is imperative for employers to offer rewards that are intrinsic or extrinsic in nature. Through adoption of an effective rewards system, human resources managers play vital roles of retaining the loyalty of the employees and improving their performance. Some of the primary objectives of a reward system include motivating the workers, retaining productive labour force, responding to organisational skills as well as informing the potential and existing employees about the organisational values that attract high rewards. One of the notable UK Company that has put in place an effective reward system is Tesco supermarket. Being the second largest supermarket in the world after Wal-Mart, Tesco controls 36% of the UK grocery market. One form of a reward adopted by Tesco is training and development of its employees. In this way, all members of staff are given an opportunity to advance their career while working in the company. To make the training flexible, Tesco offers Apprenticeship and Options Development Programmes (Carolyn, 2011, p 3). Protecting employee’s health is another reward that Tesco offers its workers. This is done by giving discounted prices to the members of staff, private medical insurance as well as dental cover. The company has also contracted top health care companies in UK to offer Tesco employees discounted prices during medical check up. In turn, Tesco registers low level of employee’s absenteeism as compared to its competitors. 3.4 Methods organisations use to monitor employee performance One of the major techniques used by organisations to monitor employee’s performance is through performance appraisal (Carver and Scheier, 2011, p. 460).This involves reviewing the performance of an individual against the preset objectives. Through performance appraisal, organisations are in a position to identify barriers that face the employees during their duties. In addition, it enables the managers to identify the employees who need promotion and more guidance on how to undertake their duties. Tesco emphasizes on self assessment as well as 360 degree feedback. Under self assessment, employees evaluate their performance based on the job specification and goals set by the management. Similarly, the company 360 degree feedback system ensures that the employees are evaluated by various parties within and outside the company premises. These parties include managers, work mates, customers and suppliers. Other key areas that are used to monitor employee’s performance include competence, achievement of team and departmental goals among others. Task 4 4.1 Reasons for cessation of employment Cessation of employment can occur due to termination of contract, resignation or retirement. Under termination of contract, employees can cease to work through a mutual agreement with the employers, frustrations that are caused by imprisonment or illnesses as well as breach of contract. In the same way, employment can be terminated through summary dismissal if an employee is engaged in a gross misconduct. Employer’s conduct is also a major issue that renders some employees to terminate their employment. A good example of a termination of employment after the end of contract was depicted by Tesco during its opening of a new store in Portlaoise, Ireland. According to Michael Sullivan, the company spokesperson, Tesco employs workers on a short-term contract during the opening of a new store. 4.2 Employment exit procedures used by two different organisations Regardless of the reasons for termination of an employment, it is imperative for organisations to uphold professionalism during the cessation process. In this way, an organisation will not only retain the trust that an employee has towards the company but also it portrays a good image on the eyes of potential employees. It is worth to note that as a legal entity, a company should be responsible to employees. In its exit procedure, Tesco maintains that adequate reasons for resignation or dismissal should be available. In the case of dismissal as a result of misconduct or theft, adequate evidence should be made available to the departmental managers. The dismissed employee has the right to contact an Employment Appeal Tribunal (EAT) to seek for legal assistance and arbitration between himself or herself and the employer. A disciplinary meeting is formed during when an employee is given an opportunity to prove or disapprove the allegations. In case the dismissed employee does not dispute the allegations he or she is issued with a letter of dismissal. A dismissed employee has a right to appeal in a court. Sainsbury's supermarket that is also based in UK is keen in holding professionalism during the termination of its employment contract. During the retirement, the company computes all the terminal benefits that an employee is entitled to based on the terms of agreement. In the case of employee’s dismissal due to allegations of misconduct, a worker has a right to take the Sainsbury's supermarket to the Employment Tribunal. First, a dismissed employee should fill out an Employment Tribunal 1 (ET1) form (Carvin, 2007, p.36). In this form an employee should give the reasons as to why he or she has decided to take the employer to the tribunal. If the form is acknowledged by the tribunal, Sainsbury's supermarket is issued with a copy of ET1. The employer (Sainsbury's supermarket) is supposed to read the requirements of the form and reply to the tribunal within a specified time. This is followed by writing of statements from the employer, employee and the witness. All the three parties should give their point of view in the statements that are keenly scrutinized by the Employment Tribunal. 4.3 The impact of the legal and regulatory framework on employment cessation arrangements Based on the high costs associated with litigations, employees prefer to seek the assistance of Employment Tribunal and Advisory, Conciliation and Arbitration Service (ACAS). However, if the dismissed employees are not satisfied with the decisions made by the tribunal, they have the right to seek court intervention. According to Employment Relations Act 1999, companies should not limit the compensation given to employees who are dismissed on the bases of whistle blowing. Additionally, during cessation of employment, companies are required to undertake release interviews as well as counselling programs. In this way, employees will be assisted during their adjustment. An example of a legal implication on employment cessation is evident from a dismissal of a Tesco worker whose employment was terminated in 2009. After a meeting between the claimant, Personnel Manager and the Trade Union Representative, it was held that the claimant was denied an opportunity to appeal the unfair dismissal. As a result of the intervention of the Employment Tribunal, the claimant was re-instated. Even though employers have the right to dismiss their employees at any time, contractual law depicts that notices should be issued to the employees. The table below indicates the period of employment and the notice that an employer should give an employee before a dismissal according to Employment Rights Act of 1996. Period of employment Notice 1- 4 weeks 24 hours I month-2 years 1 week 2-12 years 1 week after every year 12 years and above 12 weeks Source - Employment Rights Act of 1996 Works Cited Carolyn S. Reward Management And Motivation Theory. London: McGraw-Hill, 2011. Retrieved from http://www.articlesbase.com/management-articles/reward-management-and-motivation-theory-1902335.html Carver, C and Scheier, M. On the self-regulation of behavior, New York: Cambridge University Press,2011. Carvin, B. How to Improve Exit Interview Participation Rates. London: Sage, 2007. Retrieved from http://humanresources.about.com/od/employeesurveys/a/exitinterview.htm Employment Rights Act of 1996. Retrieved from http://www.legislation.gov.uk/ukpga/1996/18/contents Murphy, J. Inner Excellence. London: McGraw-Hill, 2009. Read More