Concept and Definition of Reward Management
Tags; Reward Management | Human Resource Management | HRM | Motivational Theory | Scanlon Plan
This top design, implementation, maintenance, communication
and evolution of reward processes with the value of the organization.
Reward management therefore, involves the analysis and
effective control of employee remuneration and covers salary and all benefits.
Much of the literatures are available to evaluate the concept of reward
management.
The early discussions to reward management arrived in
the early 1970s, with Scanlon Plan. Joseph Scanlon laid down a model
for paying reward to employees and workers of the organisation,
About Scanlon Plan
Sir Joseph Scanlon’ formulated the plan for reward for the
employees, popularly known as Scanlon plan is a model for business
organization. This type of organizational structure is a gain sharing
program, and seeks to involve employees more directly in the processes of
corporate decision-making in order to benefit from suggestions and
contributions from employees. Employees are rewarded for their input and
assistance through profit sharing plans, which disperse some portion of
the economic benefits generated by a more engaged workforce to the members of
that workforce. These plans work best in environments where employees have
relatively stable, long-term attachments to a single corporation.
In sum, The Scanlon Plan (SP) is a systematic approach to
enhancing organizational effectiveness through a formal participation program
and a financial bonus. It has met with varying degrees of success. The present
study is an investigation of factors that account for this variation in
success. SP success was found to be positively related to the average level of
participation in decision making reported by employees, to the number of years
a company had had an SP, managerial attitudes, chief executive officer's attitudes,
and expected level of SP success; but not related to company size.
Pay is a key element in the management of people. The
importance of pay begins with pay administration that deals accurately and
swiftly with payroll-related matters. Much of the information used by pay
administrators is shared with the human resource function. Pay evaluation
systems also impinge on human resource territory. Free market organizations are
particularly concerned with performance-related pay as a motivating factor but
this trend appears to be ideological rather than rational since practical PRP
schemes that deliver the results intended are extremely difficult to construct.
Current evidence shows that performance pay is likely to demotivate more people
than it motivates.
Reward
Management
(according to http://www.cornwell.co.uk)
Reward management involves the analysis and effective
control of employee remuneration and covers salary and all benefits. It
assesses the nature and extent of rewards and the way they are delivered as
well as considering their effect on both the organisation and staff.
Cornwell consultants take a holistic approach to reward
management, treating every element of reward as an investment. We help assist
organisations to review each part of reward to determine:
·
Its purpose
·
An organisation’s ‘return’ on investment
·
The most appropriate areas for investment
Working closely with IDS our
consultants have access to one of the largest private and public sector salary
databases in the country. This association and our involvement with strategic
remuneration bodies helps our consultants identify and advise on emerging
trends and practices in addition to establishing appropriate levels of pay at
national and regional levels. We also conduct bespoke salary surveys focussing
on specific sectors or roles.
No comments:
Post a Comment