Employee Reward and Development Essay Example | Topics and Well Written Essays - 1500 words

Employee Reward and Development - Essay Example(Armstrong, 2004) According to CIPD, the following are the characteristics of a enumerate reward system 1. Holistic 2. Best fit 3. Integrative 4. Strategic 5. People-centred 6. Customisation 7. Evolutionary 8. Distinctive. The concept of total reward is fairly recent. The traditional Salary brass come on of the 1960s and the 1970s foc utilize on the competitive attributes of the employees rather than as a strategic/ tactical tool. This approach gave way to the Reward counseling line of thought wherein the emphasis was on all employees contributing to the success of the organization. This was a more dynamic approach which brought in non-financial rewards in the form of inbred and extrinsic motivation, into the ambit of compensation of an employee. The New Pay model (Lawler, 1990) factored in the challenges of a competitive global economy and recommended that employees be paid for the value they toy to the organization. The popular models of total reward (Armstrong, 2004) are Engaged performance model, WorldAtWork, Wyatt model, Towers Perrin model and Armstrong model. Of these, the Towers Perrin model reiterates, almost entirely, the Brown model of total reward. The Brown model (Brown, 2001), portrayed above, deals with four elements of compensation Pay, Benefits, Learning & Development and Work environment. A comprehensive model dealing with both the financial and non-financial components of pay. A good compensation approach to attract, motivate and retain the employee. Addresses the defraud-term as well as long term needs of employees. Pay component looks at base pay as well as variable pay whereby the employee is assured of a minimum income every month. Performance of the employee as an individual as well as a group is considered. Employee gets a part of profits of the company. This combined with the availability of the shares of the organization brings about a strong sense of ownership. Benefits which are both individual and family base enables the employee achieve work-life balance. The Pension component assures an independent life style for the individual even after retirement. Learning and Development provides opportunities to develop and grow in the body of work so that the overall productivity is enhanced. Continuous learning takes place and the organization can move toward becoming a Learning organization and develop middle competencies and competitive advantages in the market place. Career development helps become aware of the career progress and this helps to plan ones life in the short term as well as the long term. Succession planning helps bring out the managerial and leadership skills in the individual for mutual service of the individual and the organization. Another highlight of this model is the work environment component. Organisational culture and non-financial recognition are passing effective motivation tools. Human dignity is fostered through and through work-life balance. Communication channels, especially grapevine, can be utilized to create a rich organizational climate. From the above, it is clear that Total Reward can be used as a corporate strategy to attract, motivate and retain employees in an organization and derive tremendous advantages over competition in a globalised and highly competitive