Reward management is a basic approach to realize reasonable configuration of human resource, it plays a very important role in the human resources development and management. Therefore, the reasonable pay is helpful to improve employees' satisfaction and job performance. Porter and Lawler(2006) suggest both financial and non-financial rewards are essential for generating job satisfaction related to performance. Pay is not just motivator, it develops the globalization and makes business environment have much more competitive.
In this fast increasingly competition market. Enterprise finds out reward system is essential part that to achieve the strategy goals. However, traditional simple reward system which are including pay and benefits can not satisfy the needs of enterprise, a lot of company find new ways for rewarding. Schuster and Zingheim(2000) pose a total reward model which has four elements include pay, benefits, learning and development, work environment. Armstrong (2004, p4) identifies that "total reward approaches as a coherent whole that is integrated with other HR initiatives that help to make the organisation a great place to work." O’Neal(1998) indicates a total reward strategy is critical to addressing the issues created by recruitment and retention as well as providing a means of influencing behaviour, it can help create a work experience that meets the needs of employees and encourages them to contribute extra effort. According to Perrins (2005) pay and benefits represent financial rewards and are essential to recruit and retain staff but can be easily copied by competitors. The other two represent non-financial rewards which are essential in increasing the value of pay and benefits.
Now people's pursuit is not only the material demand, but also is a spiritual enjoyment. On the basis of the salary and benefit have been satisfied, they are requiring the development of job career and a good work environment has become more attractive. Consequently, some company offered some learning courses for training employees that to improve them specific skills, abilities and knowledge to an employee. Rao (2000) mentions the advantages of training are that employees become more competent at their jobs because they learn new skills to make them more efficient, it can increase the motivation, productivity and workforce flexibility, reduce the waste and fewer accidents. The disadvantages are that training will cost company much high money, and once fully trained, employees may leave the company for better paid jobs. Moreover, the working time is lost when employees are being trained. In short, whatever the advantages or disadvantages, as long as to let them develop in the most effective way, it is the best way.
In addition, the work environment is the other non-financial reword in the total reward model, a good work environment expresses the company are paying attention on employees' emotion and demands, it depends on this organisation culture. Christofferson and King(2006) explain the environment is the total cluster of observable physical, psychological and behavioral elements in the workplace, it is the tangible manifestation of organizational culture. Schein (1990) points out the organisation culture consists of the collective attitudes and behaviors that influence how individuals behave. For example, the google culture has highly commended, they respect and trust employees, to offer the comfortable offices and flexibility working time. That culture has established a good reputation for google, the benefits will get following from this. On the basis of respecting employees, the employees believe that they are the main role in company's operation activities. Only to let the employees realize that they have the value to company, it will give full play to their initiative, they will make more contribution to company. When the passion to work is improved, the creative will be endless.
Reward management has direct to decide affect on the effectivity of the company, which is a good approach to motivate the employees. White and Drucker(2000) point out the scientific reward management is not only can make the enterprise reach the maximum of benefits, but also to recruit, retain and motivate the employees. Reward management also as the most important economic parameters to use for guiding human resource to rational direction, so as to realize the maximization of the organizational goals. However, unreasonable reward management will lead company lose the talent, reduce the employees satisfaction, it will direct to affect the internal of company relationships and competitive, and destroy the image of company.
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Reward management is the most effective approach to attract and retain talent. For example, in order to attract talents to be candidates who have the special skills and knowledges, a lot company put the title "high salaries" on the recruitment advertisement. This is the most common way which offer high salaries to attract talent, some bosses think this is possible the most efficiency method, it helps the company find the excellence candidate, this way has play its part in recruitment. For retaining the talent, to satisfy the maximum of their needs. If their needs can satisfied, they will be immersed in their work. Meanwhile, a reasonable reward system can improve the employees' confidence of company(Armstrong, 2007). It is a measure to retain the talent.
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Reward is not only employees' salary income, and it represents the employees own value and the identified by the manager about the works, but also it represents an employee's individual ability and development prospects. Standing in the view of staff, reward is the maximum satisfy their needs. According to Maslow’s Hierarchy of Needs Theory, the salary that company gives to the employees will guarantee the . Maslow(1945) thinks only to satisfy basic needs, the next objective is to achieve higher-order needs which including social, esteem, self-actualization. The self-actualization is the highest level that everyone want to realize. The self-actualization is not just express in the the rights and status, also reflect in the compensation levels. The pay is a sign to judge whether they are successful in the self-actualization.
In conclusion, reward management is regarded as an essential role in HRM, it realizes the enterprise development in the continuing quest and improvement of the employees' self realization values, it is the process to reaches win-win. That is meaning only to make a good reward management, then can make a good employee management. Therefore, to use the reasonable approaches of the reward management is essential for business, the reasonable reward will help the HRM recruit, retain and motivate the employees, however, being unreasonable will have the opposite affects on the company. Consequently, the HRM approaches are essential for business, all the areas are connected, none can be dispensable.
References
Armstrong, M. (2004), Reward Management, London: Kogan Page Ltd.
Armstrong, M. (2007), Employee reward Management and Practise(2nd Edition) London: Kogan Page.
Christofferson, J. and B. King, (2006), "The "it "factor a new total rewards model leads the way", The Magazine of WordldatWork, Workspan 04/06
Maslow, A.H.(1945), , Psychological Review 50(4) (1943):370-96.
O’Neal, S. (1998), " The phenomenon of total rewards", ACA Journal, 7 (3)
Perrins, T. (2005), Reconnecting with employees: Quantifying the value of engaging your work force, USA: Cambridge University Press
Rao, P. S.(2000), Human Resource Management : Text and Cases, IND: Global Media
Schuster, J. R. and P.K. Zingheim, (2000), Total Reward, New York:Lexington Books
Schein, E. (1990) Organizational Culture, American Psychologist, February, Vol. 43, no. 2, 109-119
White, G. and J. Drucker,(2000), Reward Management : A Critical Text., USA: Routledge