Reward to Employee (HRM)



Reward to Employee (HRM)

Introduction

The paper attempts to present the concept of human resource management and performance management in a holistic context. It critically analyse as to how the employee reward system supports the strategic human resource management. The paper also attempts to critically evaluate a range of pay structures by discussing the types of pay structures as well as their objectives and limitations. Furthermore, the paper analyses the employee reward system of the largest supermarket of the United Kingdom, Tesco. It also presents an appraisal of the contribution of Tesco's employee reward system to the strategic human resource management function within that organization.

Discussion

Human resource management is a very dynamic field that has been evolving understanding of the patterns of impact of human resource management practices as well as the systems on performance for the purpose of embracing the mediating mechanisms. At the same time, there are still various researches going on in this area that are aimed at improving the understanding of the 'belief', 'nature' and 'motivation' to improve the overall performance of the human resource in organizations (Wright & McHahan, 2000, pp 67 - 80). The link between human resource management and human performance is based primarily on the assumption that the management employed a good rewarding system and motivating techniques for the purpose of dealing with its human resource. A motivated resource is always a more determined and productive resource (McKenna & Beech, 2002, pp 24 - 26).

Employee Reward System and Strategic Human Resource Management

Employee reward system is an integral part of the human resource management, which makes it essential for human resource managers to ensure the formulation of carefully devised strategies that are effectively implemented (Conyon, 2002, pp 91 - 102). Employee reward system comprises of everything that is aimed at motivating employees to perform their tasks in accordance with their job description in the most effective and efficient manner (Bloom & Milkovich, 2009, pp 160 - 167).

Employee Reward System

Before moving on to relating the employee reward system with strategic human resource management, it is essential that some common concepts regarding the two be understood. In this context, reward is a tangible or an intangible incentive for the employees in return of the contribution they make in the organization (Conyon, 2002, pp 91 - 102). In order to operate within certain operating standards, organizations have employee reward system for the purpose of providing incentives and encouraging certain types of behaviours, as well as punishments in order to limit the undesired behaviour of individuals (McKenna & Beech, 2002, pp 24 - 26).

An employee reward system includes all the package of benefits that an organization makes available to its members as well as the mechanisms and procedures that the organization uses for distributing these benefits to its employees. The employee reward system is not just limited to wages, salaries, bonuses, promotions to higher positions (with higher wages and benefits) and holidays, but it also includes rewards such as a guarantee of job stability, lateral transfers towards ...