Posted at 06.10.2018
Keywords: factors that have an effect on pay structure
Motivation is the procedure by which the behaviour of a person is inspired by others, through their capacity to offer or withhold satisfaction of the individuals needs and goals. (BPP Learning Media, 2010) Motivation theories are divided into two different viewpoints. See content and process ideas of motivation in (Appendix 1). Content ideas emphasis what motivations are, whereas process ideas emphasise the true process of determination. Alternatively incentive is something that employees achieve throughout their work. It could be financial when the company will pay for their performance and it could be non-financial which in this case means that the business rewards employees by promotion, achievement and reward.
"Maslow puts forward a theory that we now have five degrees of human needs which employees have to have fulfilled at the job" (Mullins, 2005). See (Appendix 2).
Maslow mentions in his theory that managers following this theory deflect their attentiveness to offering complementary pleasing associations, more attractive work, and much more opportunities for self-fulfillment.
On the other hands, Herzberg in his theory shows that there are two basic needs of people such as cleanliness factors (environmental factors) and determination factors. See (Appendix 3). Managers pursuing Herzberg's theory reject money as a motivator and focus on delivering more job improvements.
According to McGregor's theory, professionals may follow two different theories which is theory X and theory Y. Pursuant to theory X, the common worker dislikes work and can avoid it whether he/she is aware what to do or not, that is why employers suggest Theory Y that leads these to do excellent job and professionals offer opportunities to have a job done. However, McClelland centers interest on providing employees with the capability to persuade their needs for success, vitality, and romantic relationship.
Companies use both positive amplification and negative amplification to inspire employees. Managers could use positive motivation techniques to persuade employees to build good quality job. Some professionals could use negative motivation techniques to encourage employees and stop them from bad manners. However, companies reward their workers with both touchable products, as well as admire. Mangers may pay back their employees by giving weekly or every month extra or free lunches, many professionals compensate their top employees by praising them.
For example: Tesco uses two determination ideas - Maslow's and Herzberg's, see both hierarchies in (Appendix 4). Tesco uses Maslow's theory since it suggests the company if indeed they achieve one level then it motivates them to attain the next one. Also Tesco is designed to encourage its staff both by paying interest to hygiene factors and by enabling satisfiers. For example, Tesco motivates its staff by good communication, giving responsibility and including employees in decision making. Tesco allows the staffs to be part of the talks on pay increases. This shows credit of the task that staff will and rewards them.
In Tesco, they praise staff for his or her works because it will keep motivating them at the job and will carry on applying different determination theories at the job. Monetary reward uses by Tesco in a way of getting employees to welcome the complete value with their benefits offer. Tesco also uses pension system and this usually includes pension assistance that the employer creates on the employee's behalf and being process in payroll department. They also praise employees by giving them extra benefits such as car insurance and private medical care insurance, by special offers and discounts. See Tesco's compensation system in (Appendix 5).
"Job evaluation is a organized process for determining the relative well worth or size of jobs within an company in order to determine internal relativities. It provides the basis for creating an equitable quality and pay structure, grading jobs in the composition and controlling job and pay relativities. "(Armstrong, 2006)
Job evaluation is actually an comprehensive process and it must follow in a systematic approach. At the beginning of the process management must explain to its employees the reason of the program and need for it. From then on an organization has been set where all the competent HR specialists and employees are included. Within the next step organisation chooses the job from each division they are going to judge. Then the decided on job is investigated at length by the committee. Next, the committee decides a way for the work evaluation. There are two methods that can be followed to evaluate a job and these are:
Analytical - things rating, factor comparability, proprietary brands; and
Non-analytical - job rating, job classification, matched comparisons.
The pay, which is an prize for work, can be influenced by various factors and it generates some difference between the functions and the organisations. Those factors are as follows:
Bratton and Yellow metal (2003) define an incentive system as "The mix of extrinsic and intrinsic rewards provided by the company. It also involves the integrated insurance policies, processes, methods and administrative methods for implementing the machine within the platform of the human resources (HR) strategy and the full total organisational system".
There are two types of rewards: Extrinsic rewards that happen to be tangible rewards that worker receives for his or her good performance, such as add-ons, salary raise, items, promotion, settlement and commissions. Intrinsic rewards tend to give personal satisfaction to a worker, such as information, responses, popularity, trust and relationship.
Employee extra systems are positive strategies and they can provide genuine motivation. In addition to monetary thoughts; reward systems take into account factors such as attendance, customer service, quality, group and individual performance. Also bonuses increase employees' inspiration and output. It improves employees' morale and rises their self-esteem. However, a carefully organized bonus design can improve retention which really helps to maintain the best employees.
Salary increase is the other types of incentive system which is one of many motivators for the employee, and yes it is the main element determination behind an employee's performance.
Promotion is one of the most important types of reward system, where an organisation rewards an employee by moving them from their position to an increased position. Promotion increases employee's morale and job satisfaction.
However, improved upon performance is an effectiveness of pay back system; it helps the employee to perform better at work in order to get extra praise from the company. At the same time employees also put their initiatives, skills and knowledge which help them to learn something new.
However, compensation system also raises profit, in which a company has good possibility to make earnings because worker works actually and carefully. In addition, it really helps to bring positive mental health agreement between employees and the company; it creates a better working environment and helps company to keep gifted, potential employees with them.
There are some methods that are being used by Tesco to monitor their employees' performance. Tesco uses observation and responses to keep an eye on their employees' performance. In this technique Tesco hires you to definitely screen the performance of the worker, after that this person provides uncomplicated reviews. By observing and providing reviews Tesco can give the accurate form to the employees of what is expected from them.
Tesco also uses performance standards and it is one of the employee performances monitoring system where performance has been weighed against the criterion and where worker needs to accomplish this criterion. In this technique performance must be practical, measurable and portrayed in terms of your time, quality, cost, number, effect, or manner of performance.
Performance analysis is another method that used by Tesco to determine the actual job performance of an employee against chosen performance criteria. In Tesco employees' are interviewed to speak about their performance to identify talents and weaknesses, also to create an idea how to improve weaknesses and increase talents.
Tesco also runs on the method known as "360-degree appraisal" (Business Case Studies, 2013). In this technique all Tesco's stakeholders assess an employee's performance and present them feedback. For example, a manager of one department gets feedback from their administrator from HR team and their team.
The conclusion of this report shows that employees' inspiration and reward are incredibly important. You will discover various kinds of theories of determination such as Maslow's, Herzberg's, McClelland's and McGregor's ideas. Each theory has a slightly different view of leader's and employee's determination. Motivation is professionals' action to effect employee's behaviour at work, so that perform as required to be able to accomplish organisational goals. Reward management can be view as a type of management practice where employees are compensated because of their performance. Rewards can be tangible and intangible benefits for the staff within employment romantic relationship. Employees consider the reward as a go back in exchange of their performance being liked by their employer.