Reward Management System and its Impact on Employees in the Abu Dhabi Police Department - Research Proposal Example

Contents Contents 1 Research Topic 2 1. Introduction 2 1.1 Introduction to Research 2 1.2 Research Question 3 1.3 Research Objectives 4 2. Literature Review 4 2.1 Human Resource Management 4 2.2 Performance Management 5 2.3 Strategic Reward Management 6 2.4 Formulation and Implementation of Reward Strategy 7 3. Research Methodology 9 3.1 Selected Methodology 9 4. Case Study: Abu Dhabi Police Department 9 5. Conclusion 11 5.1 Scope of Study 11 5.2 Limitations 12 6. Reference List 13 7. Appendix 1 14 Research Schedule 14 Analyzing the Reward Management System and its Impact on Employees in the Abu Dhabi Police Department Research Topic This paper is based on the topic “Analyzing the Reward Management System and its Impact on Employees in the Abu Dhabi Police Department”. The aim of the research is to assess the current reward system for employees in the Abu Dhabi Police, and its impact on the motivation of employees and consequently their performance. Further, this researchs will explore the strengths and shortcomings of the current reward system and provide viable solutions to the limitations identified. Besides, possible ways to improve the current reward management system of the Abu Dhabi Police Department will be sought, for greater employee motivation and performance. 1. Introduction 1.1 Introduction to Research Employee reward systems are intended to motivate employees to perform at their highest possible level. The systems are a means to show recognition and appreciation for excellent job performance, and this encourages employees to take pride in their work. Reward systems are monetary, non-monetary and psychological payments that an employer gives to employees for the quality of work they do. Performance and compensation are two vital aspects of organizational success and have significant influence on human resource management in any organization (Armstrong 2012). Organizations should realize that they need to devise reward management systems that are best suited for the nature of each organization. It would be vital to engage employees and ask for their input in devising reward systems to help in creating a system that works for the organization. This is because organizations often fail to consider employee preferences and thus end up devising reward systems that leave employees dissatisfied (Cox et al., 2010). There are several forms of employee rewards in an organization and they include compensation in the form of wages and salaries. Thus, an organization must consider its salary structure in devising an effective reward system. Benefits are also part of the reward system and they include health insurance, travel and entertainment allowance and retirement plans among others. Recognition is a psychological reward that gives employees a sense of accomplishment in titles such as ‘Employee of the Month’, or the popular ‘Hall of Fame’ often used in many industries. Lastly, appreciation is another form of reward accorded through direct interaction with employees by management to congratulate them for excellent performance (Brown, 2001). 1.2 Research Question The research question used in this paper is to establish the effect of reward management systems within an organization and the characteristics that make the Abu Dhabi Police Department reward system effective. Reward systems have become a vital component of organizations because they contribute directly to the value of human resources. There is no single reward system that can fit all and thus, the main challenge for organizations is in designing a system that will be effective depending on its size, structure, market position, sector, and organizational culture (Cox et al., 2010 p. 253). 1.3 Research Objectives The main objective of this research is to establish the role of reward management systems in organizational performance, in relation to the motivation of employees and consequently their satisfaction, and how it translates to performance. This research will be based on the following objectives: To assess the current reward management system of the Abu Dhabi Police Department. To evaluate the input of employees in designing reward management systems. To investigate the impact of reward management systems on employee motivation, satisfaction and performance. To provide effective ways in which to improve the Abu Dhabi Police department’s reward management system. 2. Literature Review 2.1 Human Resource Management Human resource management is a fundamental aspect of an organization because it entails managing employees who are the greatest asset to the organization. Thus, the performance of employees reflects directly on the performance of the organization, which means that effective human resource management will lead to excellent performance while poor management will lead to dismal organizational performance. Effective human resource management contributes to organizational growth, sustainability and development (Deb, 2006). Today, human resource managers are focusing on techniques to strategically utilize employees, as well as the use of employee programs to promote excellent performance. Human resource management also entails the development of organizational culture and positive climate in which employees are competent and committed to the success of the organization (Ali, 2013). For effective management of human resources, managers establish systems to help in performance development, employee development, and career succession and planning. These systems help to keep employees motivated and satisfied so as to contribute to the success of the organization. Systems used by human resource managers must be aligned with organizational goals and objectives (Pereira & Gomez 2012). Thus, the role of HRM cannot be overstated as it holds a strategic role in any organization (Houldworth & Jirasinghe, 2006). 2.2 Performance Management Performance management is the continuous process of evaluating and developing measurable programs which are aimed at improving the performance of individuals and that of the organization (Biron, et al., 2011, p. 1295). These programs are aligned with the goals and objectives of the organization. Performance management allows an organization to utilize its human resources fully (Haines & St-Onge, 2012). This can be achieved through planning individual performance, continuous interaction between managers and their teams and continuous reviewing of performance. Planning individual performance entails laying out objectives which each employee is expected to achieve as well as the competencies and behaviors expected of every employee. It also entails aspects of personal development such as training that will help employees to reach their maximum potential (Armstrong 2009: 628). On the other hand, interaction between managers and their teams involves holding regular discussions about how employees are faring in regard to their objectives, seeking employees’ input on what may be improve, concerns about performance which would help in designing development plans for employees. Lastly, performance reviews would entail regular meetings to discuss current work, progress in line with performance plan as well as annual appraisal in which work is reviewed and feedback given. In order to achieve high performance levels among employees, organizations often employ various techniques to keep employees motivated. One of the prominent techniques used is the strategic reward system. 2.3 Strategic Reward Management Reward schemes help organizations to motivate employees in ways that support organizational goals (Singh, 2012). As already established, reward schemes include both intrinsic and extrinsic rewards. Intrinsic rewards are the psychological forms of compensations that employees receive for their performance such as appreciation and recognition. Extrinsic rewards are the physical forms of compensation such as wages and salaries, and working conditions. Reward schemes have to be strategically managed, fundamentally to ensure that they are aligned with organizational strategies. Strategic reward management is defined as the process of developing and implementing strategies that balance organizational strategies and operational goals to ensure that short term goals are aligned with long term opportunities (Armstrong & Brown, 2006, p. 7). The strategy also ensures that an organization is able to attract, retain and motivate quality employees with the necessary skills, potential, experience and commitment to achieve organizational goals. This helps to set directives for employees on their expected levels of performance, and behavior in aligning their individual objectives to organizational objectives (Armstrong & Brown, 2006). A reward system must consist of ways to define employee objectives, and evaluate performance to determine the form of rewards to be given (Singh, 2012). There are various forms of reward systems utilized by organizations according to Griffin (2012). These include: Merit Reward Systems  Incentive Reward Systems   Team and Group Incentive Reward Systems  Common Team and Group Reward Systems At the same time, these reward systems may consist of a breakdown of types of rewards such as base pay, performance-related pay, pension schemes, and benefits-in-kind. Rewards linked to performance are the most effective in motivating employees. Organizations have to develop an environment in which employees understand the purpose and value of their work. The nature of performance-related rewards is that they motivate employees to perform better in order to receive greater rewards, which directly translates to greater organizational performance. Performance-related compensation often consists of various types of rewards such as individual and group performance compensation, piece work schemes, commissions especially for sales people, profit-related pay and stock option plans. 2.4 Formulation and Implementation of Reward Strategy The formulation of any strategy within an organization is a process that entails defining and developing a sense of direction (Armstrong & Murlis 2007 p.39 ). The same is the case for reward strategy which involves the process of consulting with the organization’s management as well as the employees and as Armstrong and Murlis (2007) state, especially line managers who are in constant, direct interaction with the employees. It is vital to ensure that the reward strategy is confined within the organization’s goals both in the short term and the long term. It is also important to note that the development of a reward strategy is not a linear process, because strategies often evolve through several steps. Thus, the systems keep being adjusted as the strategic planners take note of and implement necessary changes. Several considerations along the way would include the organization’s financial situation in regard to affordability and emerging trends that may be specific to the industry within which the organization operates (Armstrong & Murlis 2007 p. 41). Armstrong and Brown (2006) also highlight the importance of ensuring that reward strategies are aligned with other corporate and HR strategies of the organization. Brown (2001) gives the criteria for developing and implementing effective reward strategies. The first criterion is it has to be based on clearly defined goals and be directly linked to organizational objectives. The second is that they have to be developed based on pay and reward schemes that are tailored specifically for organizational and employees’ needs. Third, they have to be integrated into HR strategies as already established. Brown (2001) also outlines several other objectives of effective reward strategies such as their ability to reinforce the achievement of corporate goals, cost effectiveness, flexibility to allow change, efficiency in operation and management and strength in relationship between pay and performance, among others. 3. Research Methodology 3.1 Selected Methodology The selected methodology in this research will be a series of questionnaires allocated to line managers within the Abu Dhabi Police department. The questionnaires will be used to determine the impact of the department’s reward scheme on employee motivation, satisfaction and performance. The questionnaires will be distributed among managers within a period of three months, in which they will be expected to make observations of employee performance in regard to the rewards they receive as compensation for their work. The managers will also be expected to engage employees on whether they are satisfied with the current reward scheme, and ask for areas where employees feel need to be changed according to their needs and preferences. The research schedule is available on Appendix 1. 4. Case Study: Abu Dhabi Police Department The Abu Dhabi Police Department has an integrated system that advocates for efficiency in all areas to ensure that it operates in ethics and upholds the values of integrity, justice, and uniqueness. The department also strives to uphold recognition of the achievements of officers as well as effective communication (Abu Dhabi Police, 2013). The Abu Dhabi Police Department through the General Directorate of the Abu Dhabi Police (GDDP) designed a strategic police of general leadership to be implemented between 2011 and 2015. The vision of the strategic plan is to ensure that the department provides security and safety to society by providing high quality police services for locals and visitors to the Abu Dhabi Emirate (Abu Dhabi Police, 2013). The employee reward scheme is one of the entities of this strategic plan, intended to appreciate and recognize the efforts of police officers within the department, to keep them motivated enough to realize the vision of the plan. There are several awards under the reward scheme that will be featured in this research and they include: Model Employee Award Creativity and Innovation Award The Model Mother Award The Ideal Driver Rescue Award Martyrs Award The Fulfillment Award Duty Award and, The Scientific Research Award. Each of these awards has specific criteria which are used to determine which police officers qualify for them. The main aim of these awards according to the strategic plan of the general leadership of the Abu Dhabi Police is to ensure that employees are encouraged to work as effectively as possible to meet the department’s vision and objectives (Abu Dhabi Police, 2013). Across time, the Abu Dhabi Police Department has established various advantages of these awards as reflected by employee performance within the department. The employees are continuously motivated to conduct their daily duties diligently, and stay commitment to the department’s goals of providing security and safety for the society (Abu Dhabi Police, 2013). Besides the above mentioned awards, the Abu Dhabi Police Department also awards officers with attractive remuneration packages in form of salaries, as well as benefits that include medical cover, retirement packages, compensation for injuries suffered in the line of duty, as well as travel, housing and entertainment allowances (Abu Dhabi Police, 2013). 5. Conclusion 5.1 Scope of Study This research will focus on human resource development and management, through the use of strategies that ensure that organizations align their human resources to overall goals and objectives. Today, organizations have no choice but to develop strategic human resource management techniques to ensure that they hire the appropriate employees, who are competent and dedicated to organizational success. It is also important to have strategies to help employees in individual development which reflects on organizational success. One of the significant human resource management techniques are the use of reward schemes, to compensate employees on their performance and motivate them to achieve higher according to individual objectives and organizational objectives. Employee compensation is directly aligned with measurable performance and thus, organizations have to establish measures with which to gauge performance. In the case study of the Abu Dhabi Police Department’s reward management system, the scope of employee reward system is wide and police officers have many instances in which they are recognized for their performance. This research will seek to establish the actual impact of the rewards given by the Abu Dhabi Police Department on employee motivation as well as overall performance of the department. Besides, this research will also seek to highlight any limitations in the current reward management system, and establish ways in which it can be improved for greater effectiveness. The scope of this research will also include the input of employees, as well as that of the managers in analyzing the current reward management system. They will also be asked to provide their opinions on what improvements would better meet the needs and preferences of the employees. 5.2 Limitations There are several limitations of this research such as the fact that it will be impossible to determine whether the managers will be completely truthful in answering the questionnaires within the police department. The main concern in view of this limitation is that because it is an analysis of the Abu Dhabi Police Department’s reward management system, the management may want to create the impression that the department has an excellent system. This would cause them to overlook the shortcomings of the system by being subjective as opposed to objective. Another limitation of this research is that because it uses a case study approach, it does not provide scientific findings that can be used in the development and management of reward management systems. This is also due to the fact that organizations often have to devise specific reward management systems that are in line with their organizational culture, management, financial resources and values among other aspects. In this regard, it would be difficult to use the strategies and techniques that are specific to the Abu Dhabi reward management system in other organizations. The third major limitation of this research is the lack of sufficient literature specific to the Abu Dhabi Police Department as well as at the Middle East society, making it difficult to connect such aspects as societal values like ethics to the department’s reward management system techniques. However, it is the intention of this research to use all available resources to achieve as accurate research results as possible. The main sources of information will be the Abu Dhabi Police website which outlines details of the reward management system used by the department among other operational information appropriate for this research. 6. Reference List Abu Dhabi Police, 2013. About Us: Abu Dhabi Police GHQ. [Online] Available at: http://www.adpolice.gov.ae/en/Portal/about.adp.aspx [Accessed 8 April 2013]. Ali, A. 2013. Significance of human resource management in organizations: Linking global practices with local perspective. Research World- Journal of Arts, Science & Commerce, 4 (1), pp. 78-87. Armstrong, M. 2009. ‘The process of performance management’, in M. Armstrong, A Handbook of Human Resource Management Practice, pp.617-638.Armstrong, M. & Murlis H. 2007. Reward management: A handbook of remumeration strategy and practice. London: Hay Group. Armstrong, M., 2012. Armstrong's Handbook of Human Resource Management Practice. 12th ed. London: Kogan Page. Armstrong, M. & Brown, D., 2006. Strategic Reward: Implementing More Effective Reward Management. 1st ed. London: Kogan Page. Biron, M., Farndale, E. & Paauwe, J., 2011. Performance Management Effectiveness: Lessons from world-leading firms. The International Journal of Human Resource Management, 22(6), pp. 1294-1311. Brown, D. 2001. Reward strategies: From intent to impact. London: CIPD. Bryman, A. & Bell, E., 2007. Business Research Methods. 2nd ed. London: Oxford University Press. Cox, A., Brown, D. & Reily, P., 2010. Reward Strategy: Time for a More Realistic Reconceptualization and Reinterpretation?. Thunderbird International Business Review, 52(3), pp. 249-260. Deb, T., 2006. Strategic Approach to Human Resource Management: Concepts, Tools & Application. illustrated ed. New Delhi: Atlantic Publisher and Distributors. Griffin, R. W., 2012. Management. 11 ed. Mason, Ohio: Cengage Learning. Haines, V. Y. & St-Onge, S., 2012. Performance Management Effectiveness: Practices or Context?. The International Journal of Human Resource Management, 23(6), pp. 1158-1175. Houldworth, E. & Jirasinghe, D., 2006. Managing and Measuring Employee Performance. illustrated ed. London: Kogan Page. Pereira, C. M. & Gomes, J. F., 2012. The strength of human resource practices and transformational leadership: an impact on organisational performance. The International Journal of Human Resource Management, 23(20), pp. 4301-4318. Singh, B., 2012. Compensation and Reward Management. 2nd ed. New Delhi: Excel Books. 7. Appendix 1 Research Schedule Task Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Supervisor Meeting * * * * * Supervisor Feedback * * * * Reading Literature * * * * * Literature Review * * * Data Collection * * Data Analysis * * Review Literature and Analysis Results * * Final Draft * * Submission * Read More