Human resource development is a crucial part in an organization, especially in increasing employee efficiency (Dessler, 2000). In the current competitive environment, organizations are working hard top improve their employees, in order to increase level of production. Human resource management department is tasked with training, motivating, and rewarding employees in organizations. Therefore, it is their role to assess the needed of the employees and their concerns. Meaning human resource managers must develop a strong motivating and rewarding systems. Employees work to achieve a specific need, something an employer must address. It may be an employee wishes to get paid, recognition, build career, or it is passion. Identifying these needs will help an employer to create an environment that fits the needs of the employee. This paper will analyze motivational theory and explain how this theory is related to reward system. The paper will also address various factors considered when determining employees’ pay, and various ways of monitoring their performance. Lastly, this paper will address various roles and tasks of human resource management.
Motivation is the process of initiating and guiding an individual to accomplish a certain goal, through satisfying individual needs. In any organization, motivation is crucial to growth and output of an organization. It is the driving force that keeps the employees focused to the organizational goal. There is a direct link between organizational motivation and reward system. This can be explained through looking at Abraham Maslow’s motivation theory of hierarchy of needs (Maslow, & Frager, 1987). This is key in understanding what exactly employees need and how the organization can fulfill these needs.
Maslow states that people are motivated by various factors and needs. Once one need is satisfied, there is need to satisfy the next. Maslow organized human needs in levels. One level must be satisfied, before satisfying the next. These levels include;
Fig 1 Abraham Maslow’s hierarchy of needs (Maslow, & Frager, 1987)
Psychological needs- these are basic needs to human being, they include water, shelter, food and bodily needs (Maslow, & Frager, 1987).
Safety needs- these needs are related to individual protection from any harm in their environment (Maslow, & Frager, 1987).
Social needs- human being wish to be incorporated in their society, through friendship, love, sense of belonging, and affection.
Esteem needs- these are internal and external esteems, which are related to power, attention, status, self respect, and autonomy (Maslow, & Frager, 1987).
Self actualization- this is the drive to achieve individual potential through fulfilling life dreams. These needs are associated with achievements, and self fulfillment (Maslow, & Frager, 1987).
In an organization, a manager must look at the needs of the employees starting with the lowest needs in the hierarchy of needs. Meaning human resource manager must come up with a successful pay structure, that recognizes work done, and job description. Strong and fair compensation plan will have solved employee’s psychological needs. To solve safety needs, HR should make sure it has created a favorable environment for employee growth. This is through creating strong relationship, and strong communication. In additional, managers must improve individual needs such as organizational hygiene. Maslow suggests that self esteem is crucial in fostering strong motivation (Maslow, & Frager, 1987). This can be achieved through rewarding, and recognition for employee performance. These rewards can be in form of promotions, incentives, gifts, or pay incensement. Employees get motivated when the organization supports their career, through college sponsorship programs, and promotions. For instance, HR in KFC may decide to motivate its employees. To achieve this, HR would utilize Maslow’s theory and increase employees’ self esteem through awarding performing employees. This may either through promotion, financial awards, or non-financial awards.
Job evaluation is the process of determining the relative size and worth of a given job; it is a procedure of rating jobs. Job evaluation is crucial in determining payment, skills needed, and performance. Job evaluation is utilized during job design, recruitment and selection, training and development, as well as career planning (Paterson, 1972). There are various methods of conducting job evaluation. An organization may use ranking method, classification method, or factor method.
Ranking method is ranking jobs from the highest to the lowest, in relation to organizational culture. Job may also be arranged in relation to difficulty of performing the task. Payment is determined by level of each job. Classification method classifies jobs into predetermine job groups. This places job into job groups and classes (Paterson, 1972). The factor comparison method ranks jobs in relation to mental effort, skill utilized, responsibilities, working condition, and physical efforts.
Once job evaluation is done, the organization is able to look at various factors that determine payment. The industry and market will play a crucial role in determining payment. This is in relation to the market and profitability of an organization. Profitable organization will tend to pay higher that other industries. The classification of a certain job will also play a key role. Top ranking jobs tend to have higher compensation that the low ranking jobs. The experience and qualifications needed for a given job also play a key role (Paterson, 1972). If a certain job requires certain skills, and academic qualifications, the job may attract higher pay. The location and environment of the job may dictate the payment. Working in risky or unfavorable areas calls for risk compensations, which calls for more pay.
Rewarding is very crucial to any organization. It helps to attract and retain good and performing employees. This is through recognizing their effort, hence increasing their motivation. Rewarding helps to reduce absenteeism, and other negative energy in an organization (Tropman, 2001). This helps to motivate and enhance employee performance. Rewarding helps to develop employee skills, since it creates a healthy competition within a work place.
There are various types of reward systems within an organization. Rewards can be intrinsic, or extrinsic. Intrinsic rewards are rewards associated with the job itself. Extrinsic rewards are associated with financial or non-financial rewards. This means management may give performers increment in their salary, bonus, profit sharing, or any other benefits (Tropman, 2001). Non-financial rewards include gifts, and a new office, computer, or any accessory. Extrinsic and intrinsic rewarding system increases employee motivation. This can be explained through Maslow theory of hierarchy. Financial and non-financial rewards act as a form of recognition, which uplifts employee self esteem.
Career rewards, and social rewards are other types of reward systems. Career rewards improves employee job security. This is through offering sponsored training, and career growth. For instance, KFC may opt to take its chefs for further training. This means chefs will gain new skills, hence enhancing their career. Social rewards involve making an employee feel comfortable within the working environment (Tropman, 2001). This is related to a new office, job title, and a clean, safe and healthy environment.
Indirect compensation is another rewarding system. This is associated with employees’ public, private protection as well as paid leaves. This is related to contributions towards pension schemes, or social security system. Paid leaves allow employees to get illness compensation, vacations, and lifecycle benefits. Lastly, is the group based reward system; this is rewarding groups or teams for a task well done (Tropman, 2001). This is gauged with the performance of the entire team, while still encouraging individual contribution. This helps to build strong teams, hence improving organizational relationship.
Monitoring performance is a continuous process undertaken by organization to gauge employee performance. There are various indicators utilized by managers to measure this performance. First, managers analyze quantity produced within a given period. This is measuring the units produced within a given production period. An increase in production placing other factors constant indicates employees are performing well. Second is looking at the quality of produced products and services. This is measured through customers’ feedback, or the amount of work rejected. In KFC, managers can measure the quality of their products by getting customer feedback in regard to various products. A positive feedback implies the employees are motivated (Hakala, 2008).
Third, timeliness, or how fast a task is performed. This is quite visible within a service industry. This is through analyzing the average customer downtime. In production, it is measuring the amount of units produced per given time period. Fourth, absenteeism; absenteeism portrays the motivation of workers. High level of absenteeism or tardiness indicates poor employee performance (Hakala, 2008). Fifth, employee innovation and creativity; motivated team tends to be less creative. In case a manager notes low level of innovation, there is high chance the employees are less motivated. Sixth, personal habit and self-esteem; Individual and group self-esteem is a great indicator of motivate team. This can be accessed through personal behavior, communication, and relationship within the work place. Lastly, is conducting self, group, or peer appraisals (Hakala, 2008). This can be explained with the 360 degree appraisal (Nsiah, 1983). This is where the performance of an employee is appraised by the entire team, including the customers. For instance, KFC may opt to gauge how employees are treating the customers. KFC management may ask customers to rate the services and give details about the employees. Form the collected data, KFC management can be able to assess and rate employees.
Fig 2 360 degree appraisal (Nsiah, 1983)
The world is growing socially, economically and politically. This means the world of business is also evolving, and growing to new levels. Today, a manager is not only responsible for organizational economic and technical resources (Dessler, 2000). A manager is responsible for managing people, the most important asset to an organization. This responsibility is tasked to human resource management department. Before human resource management, there was personnel management. This has been replaced with HRM which is more proactive.
Strategic role: PM was responsible with short term relational issues within an organization. These are issues that were not foreseen during strategic planning, like fire, or employee strikes (Dessler, 2000). HRM is entirely involved with day to day activity, through coming up with strategic views of human resource (Litwin, & Stringer, 1968). This means HRM is more proactive than PM.
Employee psychology and job design: PM was more inclined to getting the set results from the employee. Meaning employee knew what is expected, and the employer was looking for the at least maximum compliance. This meant employees output was predetermined. HRM on the other hand expects more form the employee, than what is intended by the strategic plan of an organization. This means employees are given freedom to explore and upgrade their skills, to get maximum results. This creates team working, and self control in the organization.
Organizational structure: PM adopted a bureaucratic and hierarchical structure. This is where most organizational decisions were made by top organs. HRM come up with a flexible organizational structure, which involves peripheral shells. In additional, HRM utilized outsourcing as a mean of improving production (Litwin, & Stringer, 1968).
Remuneration and training: PM payment system was agreed through collective bargaining, while HRM remuneration is done through job evaluation, and it is done with the aim of motivating employees. Training was only done to the top level managers, and not to the other employees. In HRM all employees are provided with regular training and development programs, in order to increase their skills, experience, and efficiency.
Human resource practitioners play a crucial role in management of human resource with an organization. Human resource practitioners perform the following tasks:
Hiring: Human resource practitioners do job evaluation and post ads for hiring new employees. They select potential candidates, and interview them (Dessler, 2000). They assess the skills and qualifications of a candidate, and determine if they qualify for a specific task.
Orientation and training: Human resource practitioners orient new and hired employees. This is taking them through organizational culture, structure, and company procedures (Kruger, at al, 1996). They also train them in regard to the task ahead. As well as training them on various working ethics.
Education and skill development: Human resource practitioners support employees in their quest to improve their skills, experience, and education. This is through facilitating learning and growth activities; for instance, scholarships (Suttle, 2014).
Handle grievances: Human resource practitioners handle various employee grievances that may arise in daily activities. They help employees to go through complex organizational issues. They also provide a healthy, clean, and safe environment (Dessler, 2000).
Labor relation: they are also involved in labor relations; this is negotiating contracts, wages, and various pension plans. They create a strong organizational culture, through creating a strong communication channel (Kruger, at al, 1996). They enforce HR rules and regulations, and discipline those who go against them. They also conduct analysis to determine skills, and qualifications needed in future.
Role of line manager: line managers directly manage individual employees and groups. Line manager allocate work, tasks and rotas. They then monitor these duties, and check whether it is done accordingly. They deal with customers, and clients of the organization, and work to improve the relation. They work with employees to look for a way of improving performance (Dessler, 2000). This is through ensuring that they solve challenges that may face employees in working process. Lastly, line managers perform employee appraisal, to determine performers and non performers.
KFC human resource must comply with the set United Kingdom labor laws and other regulations.
Under employment act 1996, employees are entitled to a minimum wage of £6.31 per hour (UK Labor Law 2009). In additional, employees must be treated equally, with no discrimination, and provision of clean and safe working environment. HR manager must make sure the compensation system comply with this regulation. This affects KFC, since it must balance during hiring new employees. This means it must apply gender equality, and avoid any form of discrimination. This may deny KFC a chance to hire skilled and qualified employees, since they have to look at other factors. This limits hiring only qualified employees.
Contract of employment
This specifies that an employee must be given prior notice before termination, and a genuine reason for termination must be given (UK Labor Law 2009). KFC have to come up with reasons to fire or terminate an employee. In case KFC manager fails to apply these regulations, the organization may be sued, and end up paying heavy fines.
Health and safety
Employer must provide safe and clean environment. This is an environment that is well ventilated, clean and dry. In additional, child labor is restricted and there is a limit to working hours (UK Labor Law 2009). KFC being a fast food business, this regulation may affect working hours for employees. This means that HR must employ various employees’ to work on shifts. This is an additional cost, which affect profits. KFC is liable in case there is an accident within its working environment. This is considering this environment is highly unsafe, due to gas, hot oil, and other electrical cookers. Hence, KFC must invest in safety measure, to keep their employees from harm.
Human resources management department is very crucial to any organization. It is the department that oversees most operations within an organization. It helps to strategize future organizational labor needs, in terms of skills, and qualifications. It helps to evaluate and analyze various jobs, and come up with a comprehensive compensation plan. HRM oversee hiring, training, motivation, and other daily activities in an organization. Therefore, it is correct to say that HRM plays a key role in organizational production process.
Dessler, G. (2000). Human resource management (8th ed.). Upper Saddle River, NJ: Prentice Hall.
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Litwin, G. H., & Stringer, R. A. (1968). Motivation and organizational climate. Boston: Division of Research, Graduate School of Business Administration, Harvard University.
Maslow, A. H., & Frager, R. (1987). Motivation and personality (3rd ed.). New York: Harper and Row.
Nsiah, G. K. (1983). Perfomance appraisal. NY: Kent.
Paterson, T. T. (1972). Job evaluation. London: Business Books.
Suttle, R. (2014, July 15). HR Practitioner Job Description. Everyday Life. Retrieved September 4, 2014, from http://everydaylife.globalpost.com/hr-practitioner-job-description-2284.html
Tropman, J. E. (2001). The compensation solution how to develop an employee-driven rewards system. San Francisco: Jossey-Bass.
UK Labor Law (2009) United kingdom labor laws and regulations handbook: strategic information and basic laws.. (2009). S.l.: Intl Business Pubns Usa.
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