Human resource management Essay Example | Topics and Well Written Essays - 1500 words

Human resource management - Essay Example As such, delving deep into aspects which link reward and motivation with enhanced employee and organizational performance is of prime importance in contemporary business practice. Rewards defined Armstrong (2009) asserts that rewards emanate as a constituent of strategic human resource management which subsequently form the basis for competitive strategy. Employees are appreciated and rewarded for their creativity, innovations and commitment. This fosters a sense of satisfaction, motivation and consistency in work. It ultimately establishes link with quality management proposition of the organization and leads to enhanced performance, better customer service and greater value for money. Total reward strategy Earlier, rewards constituted only financial aspects of pay, share ownership and tangible benefits. However, with increased prevalence of intangibles in the employee satisfaction criteria, incorporating retention strategy within human resources strategy and developing employer-emp loyee relation on informal lines, total reward strategy now includes learning, career planning and development, cooperative environment and quality of work as cornerstones to better employee performance and commitment (Figure 1). Figure 1: Total Reward Components Performance management theories and models are replete of mention and contribution of rewards as means of giving due credit to employees for their contribution and efforts and develop the trust and cooperation factors by nurturing a high performance work system in place. Jiang et al. (2009) summarize the theoretical basis behind rewards linked to higher motivation and consequently high performance. Taking examples of motivational theories propounded by eminent researchers like Maslow, Herzberg and Adam’s, the author has anchored the fact that total rewards strategy serves two major purposes- with the help of extrinsic rewards; basic amenities requirements of workers are fulfilled which suffices the monetary and futur e security needs of people. With the help of intrinsic rewards in terms of learning and positive workplace, individual growth is encouraged which satisfies the career development, recognition, status, leadership and work-life balance criteria of employee retention. As a result, squarely growth and improved performance is achieved in terms of satisfied internal (employees) and external customers and higher productivity from all the resources used by organization. Case of Holiday Limited Company The development of reward system at Holiday Limited Company (HLC) highlights the urgency to introduce rewards strategy as a means to retain and develop talents within the organization and bridge gaps between expected and perceived service quality for customers. HLC, being a service intensive company was in greater need to implement rewards strategy and reap its benefits in terms of improved performance through increased motivational level (Analoui 2007:246). However, the implementation and con ceptualization of rewards strategy at HLC suffers from certain limitations and flaws (Refer to Appendix 1 for complete facts of the